Jakarta's Medium-Grade Rice Prices Continue to Rise

Based on data from hargapangan.id, the price of medium-quality rice on January 19, 2018, reached Rp 14,650/kilogram (kg). This represents an increase of Rp 1,300/kg or 9.74% compared to the end of last year. The price also increased by Rp 3,100/kg or 27.39% compared to January 19 of the previous year. This is despite the government-set Highest Retail Price (HET) for rice in Java being Rp 9,450/kg.

Supply shortages in several markets have caused the price of medium-grade rice in the capital city to steadily rise since mid-2017. This, coupled with dwindling rice reserves at Perum Badan Urusan Logistik (Bulog), fueled public concern and pushed the price of this staple food upward at the beginning of this year, potentially impacting the inflation rate, which is targeted at 3.5% this year.

To curb the volatility of rice prices in the country, the government decided to import 500,000 tons of rice, expected to arrive by the end of this month. However, this policy has been opposed by some parties as it could harm farmers by potentially causing a drop in paddy prices.

(Read Databoks: How Much Rice Does Perum Bulog Have in Stock?)

(Read Databoks: Indonesia Among Top 10 Largest Rice Importers in the World)