The Subsidized Price of the Poor People's Rice Program Continues to Rise

Economics & Macro

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Viva Budy Kusnandar 22/07/2019 15:00 WIB

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The increase in rice prices and the rising quantity of Raskin (government subsidized rice) have driven a surge in Raskin subsidy costs.

Price and Rice Subsidies for the Poor (2009-2017)

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Price and Rice Subsidies for the Poor (2009-2017)

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Food subsidies for the poor rice program (Raskin) show a yearly increase in line with the rising price of rice purchased by Bulog. In 2009, Bulog's rice purchase price was Rp 5,500/kg, while the Raskin selling price was Rp 1,600/kg. This means the Raskin subsidy was Rp 4,685/kg. Then, in 2017, Bulog's purchase price was Rp 9,220/kg, with the Raskin selling price remaining at Rp 1,600/kg, resulting in a Raskin subsidy of Rp 7,620/kg.

The increase in rice prices and the rising quantity of Raskin led to a surge in Raskin subsidy costs. In 2009, the quantity of Raskin was 2.67 million tons, resulting in a total Raskin program cost of Rp 11.79 trillion. In 2017, the quantity of Raskin reached 2.78 million tons, with a program value of Rp 19.66 trillion.

(Read Databoks: Average Wholesale Rice Price in 2018 Increased by 2.26%)

Editor : Hari Widowati

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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The Subsidized Price of the Poor People's Rice Program Continues to Rise

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The Subsidized Price of the Poor People's Rice Program Continues to Rise

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