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🇮🇩 Indonesia /Economy & Trade

Indonesia's Bulog to Offer Premium SPHP Rice to Curb Price Hikes

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Indonesia's state food company Perum Bulog is preparing premium SPHP rice to stabilize and lower the price of premium rice.
  • The proposal, including a premium SPHP rice brand called 'Beras Kita,' has been submitted to the ministers of agriculture and food security.
  • The move aims to address the rising cost of premium rice, which has reached Rp 16,000 per kilogram in some areas, by offering a more targeted intervention than medium-grade SPHP rice.

Indonesia's state food company, Perum Bulog, is introducing a premium version of its "Stabilization of Food Supply and Prices" (SPHP) rice program. This initiative aims to combat the recent surge in premium rice prices, which have reached as high as Rp 16,000 per kilogram in some regions.

Perum Bulog's President Director, Ahmad Rizal Ramdhani, stated that the proposal for this premium SPHP rice, branded 'Beras Kita,' has been presented to the Minister of Agriculture and the Coordinating Minister for Food Security. He explained that the current SPHP program only offers medium-grade rice, which has proven insufficient to curb the price increase of premium varieties.

We are suggesting to the Minister of Agriculture and the Coordinating Minister for Food Security to determine the next policy. For this increase in premium rice prices, we are also providing premium SPHP rice called Beras Kita.

— Ahmad Rizal RamdhaniPresident Director of Perum Bulog, explaining the rationale behind introducing premium SPHP rice.

The company believes that offering a premium SPHP option will be a more effective market operation tool. The exact retail price for the premium SPHP rice is still under discussion, with the government considering the highest retail price (HET) for premium rice, set at Rp 14,000 per kilogram, as a reference. The final price will also factor in production costs to balance consumer and business interests.

Bulog has not yet determined the allocation volume for the premium SPHP rice, opting instead to adjust distribution based on market needs and demand. This flexible approach aims to prevent initial miscalculations of supply. The company also noted that increased national rice production has shifted consumer preferences, particularly in urban areas, towards premium rice varieties.

So, not only medium SPHP rice, but we are also trying to present premium SPHP rice called Beras Kita.

— Ahmad Rizal RamdhaniClarifying that the new offering complements, rather than replaces, the existing medium-grade SPHP rice.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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