Arranging Rice Policy

The government needs to have a new strategy and policy for rice amidst the efforts to maintain prices at the farm and consumer levels as well as maintain food stocks.

Near the peak of the rice harvest in several regions as Kompas observed, the rice prices benefit farmers (Kompas, 14/3/2023). The farmers' rice has become a source of disagreement between large rice mill businesses and the State Logistics Agency (Bulog), as well as small rice mills.

President Joko “Jokowi” Widodo previously asked the National Food Agency to immediately set the sales price of dry unhusked rice for Bulog. The aim was to prevent prices from falling at the farm level (Kompas, 12/3).

The government's rice policy so far has been to keep rice productivity high to meet the national demand for carbohydrates. The government provides incentives to farmers with subsidies for fertilizers and pesticides, building irrigation networks, and maintaining unhusked rice prices at the farm level. It is maintaining the price of unhusked rice, in addition to providing rice production incentives for farmers, while keeping prices affordable for consumers, especially the working class.