HET for Medium Rice and HAP for Corn Increased

The government increased the retail price of medium rice and corn. The price of premium rice which has been increased will continue.

KOMPAS/NINA SUSILO

Head of the National Food Agency, Arief Prasetyo Adi announced an increase in the selling price of medium rice and corn at the Presidential Palace Complex in Jakarta on Wednesday, April 24, 2024. Previously, Arief reported the food condition to President Joko Widodo at the Merdeka Palace, Jakarta.

JAKARTA, KOMPAS — The price of rice, both premium and medium, will not fall for a long time. The government has further extended the highest retail price for premium rice to IDR 14,900 per kilogram which has been in effect since March 2024. The reference prices for medium rice, grain, and corn have also been increased. This was conveyed by the Head of National Food Agency Arief Prasetyo Adi after reporting the condition of national food to President Joko Widodo at the Merdeka Palace, Jakarta, Wednesday (24/4/2024). In the meeting which took place from 14.45 to 15.40 WIB, it was stated that the stock condition of basic food needs, which Arief said, was still safe. The government's food reserves currently remain at 1.3 million tons.

Even though rice prices tend to be stable or even fall, Arief said, President Jokowi directed that prices at the farmer level must be maintained. "Because of that, (the President) ordered the National Food Agency of course together with Bulog to carry out an off take or absorb (grain) because this April the harvest was equivalent to 5.5 million tonnes of rice," said Arief after the meeting.

Also read: Keep rice supplies safe, HET relaxation guaranteed to apply until March 23

The government's purchase price (HPP) for harvested dry paddy to be absorbed by Bulog will also be adjusted soon. "The rice price which was previously Rp 5,000 will be set at Rp 6,000," he said.

Currently, the price of harvested dried rice at the farmer level varies between Rp 4,800, Rp 5,200 and Rp 5,400, depending on the region.

Therefore, the President ordered the National Food Agency, along with Bulog, to conduct an "off take" or absorption of rice because this April's harvest is equivalent to 5.5 million tons of rice.

KOMPAS/NINA SUSILO

President Joko Widodo discussed with the Head of Bulog Budi Waseso, Head of the National Food Agency Arief Prasetyo, Minister of State-Owned Enterprises Erick Thohir, and Minister of State Pratikno during a visit to the Bulog warehouse in Dramaga, Bogor Regency on Monday (11/9/2023).

Because of this, President Jokowi set the highest retail price (HET) for premium and medium rice to be increased. For HET for premium rice which on 10-23 March 2024 was increased to IDR 14,900, the HET will continue until 31 May 2024. The HET for medium rice, according to Arief, is adjusted to the price of around IDR 12,500 per kilogram.

Government bias

This HET, continued Arief, can be readjusted. If the harvest is good and production increases and agro inputs such as fertilizer and land rent decrease, the HET could be reduced.

In addition to rice, the reference purchase price (HAP) for dried corn kernels at the farmer level with a 15 percent moisture content has also been increased from the previous Rp 4,200 per kilogram to Rp 5,000 per kg. Arief called this the government's high favoritism towards farmers and breeders.

”

To the public, especially consumers, that we really have to adjust this because agro input from several strategic commodities is also increasing. So, we all believe that increasing production will be proportional to the welfare of farmers and breeders,

”

he said.

Although the medium rice price at the consumer level will increase, Arief is confident that there will be no price fluctuations for medium rice. This is because there will be a provision of food assistance in the form of 10 kg of rice from the government's food reserves for the 22 million beneficiary families, which will continue until June. For the following period, the government is still calculating the possibility of continuing this program.

So far, the Chairman of the Seed Bank and Agricultural Technology Association (AB2TI), Dwi Andreas Santosa, has stated that every farmers' organization has proposed different prices for dry-harvested paddy at the farmer level. AB2TI proposed Rp 6,900 per kilogram, Kelompok Tani Nelayan Andalan proposed Rp 6,500 per kilogram. The Indonesian Farmers Union and the Indonesian Farmers' Solidarity Association each proposed HPP GKP of Rp 6,757 per kg and Rp 7,000 per kg.

Each farmer organization proposes HPP for dry grain harvest at different farmer levels.

Dwi mentioned that this year's GKP price benchmark is quite high due to the increased production cost of GKP. Based on AB2TI's calculation, the production cost of GKP on a land area of 1,500 square meters is Rp 5,966 per kg, so AB2TI proposed the GKP price benchmark of Rp 6,900 per kg.

KOMPAS/FRANSISKUS PATI HERIN

Goris Takene harvested corn in his own garden in Belo Village, Maulafa District, Kupang City, East Nusa Tenggara, on Monday (8/4/2024). The Kupang City Government employee spent his holiday time gardening.

Also read: Rice HET and Sugar Reference Prices Will Be Reevaluated

The Chairman of APTRI, Soemitro Samadikoen, also stated that he had submitted a proposal for increasing the sugar reference price (HPP) to the National Food Authority since last week. According to the plan, the proposal will be discussed this week.

"In the 2024 sugar cane milling season, we propose a sugar farmer selling price of Rp 16,400 per kg. The proposal takes into account the current cost of sugar cane production, which has increased significantly compared to last year's cost," he said (Kompas.id, April 24, 2024).