Rice Price Developments at the Milling Level

The average monthly price of rice at the milling level in January 2018 reached its highest peak since 2013. Despite the government implementing a regional Highest Retail Price (HRP) policy, rice prices in the market continued to rise. This ultimately led the government to import 500,000 tons of rice to curb price volatility and increase market supply.

According to data from the Central Statistics Agency (BPS), the average price of medium-quality rice in January 2018 experienced the highest increase, rising by 6.83% to Rp 10,177.05/kilogram (kg). This was followed by low-quality rice, which increased by 5.2% to Rp 9,792.59/kg, and premium-quality rice, which rose by 4.96% to Rp 10,349.91/kg.

The upward trend in rice prices had been evident since the second half of the previous year. As a result, over a year (January 2017 compared to January 2016), rice prices increased by an average of 11.51%. The largest increase was experienced by low-quality rice at 12.96%, followed by medium-quality rice at 11.84%, and premium-quality rice at 9.74%. Prior to this, rice prices had also increased from September 2014 to 2015.