President Jokowi Reveals Distribution Has Hampered Rice Supply in Retail Markets

President Jokowi emphasized that rice stocks are still abundant and are expected to flood the market again.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Presiden Jokowi Ungkap Distribusi Hambat Pasokan Beras di Pasar Ritel

KOMPAS/NINA SUSILO

On Thursday (15/2/2024), President Joko Widodo visited the Cipinang rice market in East Jakarta. There is said to be a sufficient amount of rice, and it is hoped that it will soon reach retail stores and various regions. However, the reality is that retail stores in several regions have not had rice stock for more than a week. Even if there is stock, the price has soared.

JAKARTA, KOMPAS — President Joko Widodo revealed that the supply of rice in the retail market was disrupted due to distribution from farmers which was still hampered. It is estimated that rice stocks will return to abundance in the next week or two.

To ensure the supply of rice in the retail market, Thursday (15/2/2024), President Jokowi visited the Rice Main Market Cipinang in Jakarta East. "I came to the Cipinang Rice Main Market to make sure there was stock. "Because from here it is distributed to retail, to supermarkets, to regions, from the Cipinang Main Market," said the President who was accompanied by Head of Bulog Bayu Krisnamurthi, Head of the National Food Agency Arief Prasetyo Adi, and Acting Governor of DKI Heru Budi Hartono.

The President revealed that there is an abundant supply of rice in Cipinang. However, it is acknowledged that the additional supply from the harvest has yet to enter the market. Rice distribution is also reported to be disrupted by floods in Demak and Grobogan, Central Java.

"The flood issue in Demak, Grobogan has affected it, but I think it has been resolved through deliveries from Bulog to the regions, Bulog to the Cipinang Main Market, we will see later, I think it will be in a week or two, I think it will go down a little. "While waiting for the harvest, if the big harvest comes, it will definitely be (abundant)," he said.

Also read: Rice price increases are increasingly worrying

KOMPAS/NINA SUSILO

President Joko Widodo gave a statement to journalists after inspecting the rice stock at the Cipinang Rice Wholesale Market in East Jakarta on Thursday (15/2/2024).

When asked further about distribution constraints, the President said that Indonesia is a large country with many islands. "If distribution is sometimes hampered, yes, that must be resolved. "But, that's not all likeyou know," he said.

The President also hopes that rice will be immediately distributed to retail stores and traditional markets. "It's simple, give as much as the market asks for. Give as much as the region asks for, whether it's for SPHP (food supply and price stability) or commercial purposes. The goods are available," the President said.

When asked if there was a target for this week's supply already in retail stores, the President said, "We have checked and it is abundant here. From here, it will be distributed to all markets and retail stores in the surrounding areas."

Thus far, retail stores in Bogor, Jakarta, and Surabaya, for example, no longer have rice in stock. One Indomart retail store in North Bogor District, Bogor City has been out of rice stock for more than a week. Residents are starting to have difficulty acquiring rice. If there is any available, the price has skyrocketed to Rp 16,000 per liter for medium quality rice.

We have checked that the supply here is abundant, from here it will be distributed to all the markets, retailers, and markets in the surrounding areas.

In Kompas's monitoring, Tuesday (13/2/2024), a number of traders admitted that rice stocks had decreased. Mari (55), a trader at Toko Si Doel, said that currently she only has 10 tons of rice in her shop. Usually around 20 tons.

"Now is difficult. Yesterday someone entered the warehouse and everything was gone," he said.

Rice prices reportedly trigger a decrease in supply. According to Mari, the current premium rice price from producers reaches Rp 16,000-17,000 per kilogram, while medium rice is priced at Rp 14,000-15,000 per kilogram.

Regarding the complaint from business owners about the high purchase price of rice compared to the highest retail price (HET), the President said, "There has been no discussion about it."

Not because of social assistance

President Jokowi also denied that the rice shortage was due to social assistance in the form of distribution of government rice reserves (CBP). "It has nothing to do, it has nothing to do with food aid at all. There is no connection at all because this is precisely what can control. Because the supply is through social assistance to the community, it actually keeps prices from rising. If you don't do it, you'll actually jump. This is the supply and demand formula. "The supply is provided and distributed well, automatically controlling prices," he said.

Also read: Not yet harvest season, premium rice is rare and expensive in Jakarta

Previously, following a closed meeting on rice at the Merdeka Palace in Jakarta on Monday (12/2/2024), Arief stated that the social assistance program is not related to the price increases. Instead, he said that the government's rice reserve is providing food assistance. However, as a tribute to the election, the distribution of food aid will be suspended from 8-14 February.

KOMPAS/PRIYOMBODO

Workers are adding to the rice stock at a rice store in Kebayoran Lama market, South Jakarta, on Tuesday (13/2/2024). The rise in rice prices is not only felt by consumers, but also by traders who are having difficulty selling due to the high prices.

Arief added that President Jokowi has requested that rice should be able to reach modern and traditional markets properly. "Once again, his order is to flood the market," he said.

Head of Bulog, Bayu Krisnamurthi, added that currently Bulog still has a stock of 1.189 million tonnes, including premium ones. Out of the planned allocation of importing 2 million tonnes, 500,000 tonnes have already been realized.

"Yes, of course, the year is still long, we will still pass through the droughts of June, July, October, and so on, so we must have a long preparation," said Bayu.

Bulog will also loosen the distribution of rice. There is no prohibition to purchase premium rice. "There is no prohibition to purchase premium rice, regardless of the amount needed as long as it is in accordance with the rules," he said.