Bulog Prepares Premium SPHP Rice to Curb Price Hikes
State-owned food logistics company Perum Bulog is preparing a premium rice product under the Food Supply and Price Stabilisation Programme (SPHP) as a market operation instrument to curb the rise in premium rice prices and maintain national price stability and food availability. Bulog President Director Ahmad Rizal Ramdhani said the proposal has been submitted to Agriculture Minister Andi Amran Sulaiman and Coordinating Minister for Food Zulkifli Hasan as material for the government’s next policy formulation. “We suggested to the Agriculture Minister and the Coordinating Minister for Food to determine the next policy. For this premium rice price increase, we are also providing premium SPHP rice called Beras Kita,” Rizal said when asked about premium rice prices reaching Rp16,000 per kilogram, following a fun mini-football match in Jakarta on Saturday. According to Rizal, Bulog is proposing the premium SPHP rice under the Beras Kita brand as a complement to the SPHP programme, which has so far only provided medium-category rice. “So it is not just medium SPHP rice, but we are also trying to introduce premium SPHP rice called Beras Kita,” he stated. He explained that market operations using medium rice have been deemed ineffective in suppressing prices when it is premium rice that is experiencing increases, thus a more targeted instrument is needed. Therefore, Bulog is developing a distribution concept for premium SPHP rice to help lower the price of premium rice, which has recently risen in several regions. Ahmad Rizal said the selling price of the premium SPHP rice is still awaiting discussion and a decision in a limited coordination meeting between the government and relevant ministries and agencies. He noted the government will consider the highest retail price (HET) for premium rice of Rp14,900 per kilogram as one reference in setting the programme’s pricing policy. Besides the price, the government will also calculate the production cost of premium rice so that the resulting policy maintains a balance between consumer interests and business operators. Bulog has also not yet determined the allocation volume for premium SPHP rice, as the distribution volume will be adjusted to community needs and demand developments in the field. Rizal stressed that setting a quota from the outset risks not matching actual needs, so the government has opted to adjust the distribution volume based on evolving market conditions. He mentioned that the Agriculture Minister’s directive regarding the provision of 2 million tonnes of commercial rice remains part of the discussion in formulating the premium SPHP rice distribution scheme. According to him, the composition between medium and premium SPHP rice will be determined based on an evaluation of community needs so that distribution can proceed more effectively. He assessed that the increase in national rice production has driven a shift in public preferences, especially in urban areas, where more people are now choosing premium category rice. Bulog is optimistic that the presence of premium SPHP rice can strengthen the effectiveness of market operations while maintaining price stability and meeting the community’s need for quality rice at affordable prices.