Bulog Prepares Premium SPHP Rice to Curb Price Hikes
Perum Bulog is preparing a premium Supply and Food Price Stabilisation Programme (SPHP) rice as a market operation instrument to curb rising premium rice prices whilst safeguarding 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 input for the government’s next policy decisions.
“We have recommended to the Agriculture Minister and the Coordinating Food Minister that they determine the next policy. For the rising premium rice prices, we are also launching a premium SPHP rice called Beras Kita,” said Rizal when asked about premium rice prices reaching Rp16,000 per kilogram, following a minisoccer friendly match in Jakarta on Saturday.
According to Rizal, Bulog has proposed the premium SPHP rice under the Beras Kita brand to complement the SPHP programme, which to date has only provided medium-grade rice.
“So it is not only medium SPHP rice, but we are also trying to introduce a premium SPHP rice called Beras Kita,” he said.
He explained that market operations using medium rice have not been effective in pushing down prices when it is premium rice that has risen, hence a more targeted instrument is needed.
Therefore, Bulog has drawn up a concept for distributing premium SPHP rice to help bring down premium rice prices, which have recently risen in a number of regions.
Ahmad Rizal said the selling price of the premium SPHP rice is still awaiting discussion and a decision at a limited government coordination meeting with the relevant ministries and agencies.
He said the government will consider the highest retail price (HET) for premium rice of Rp14,900 per kilogram as one of the benchmarks in setting the programme’s pricing policy.
Beyond price, the government will also calculate the production cost of premium rice so that the resulting policy maintains a balance between the interests of consumers and businesses.
Bulog has also not yet determined the allocation of premium SPHP rice, as the distribution volume will be adjusted to public needs and demand developments in the field.
Rizal stressed that setting a quota from the outset risks mismatching actual needs, so the government has chosen to adjust distribution volumes based on evolving market conditions.
He noted that the Agriculture Minister’s instruction on providing 2 million tonnes of commercial rice remains part of the discussions 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 public needs so that distribution can proceed more effectively.
He assessed that rising national rice production has driven a shift in public preferences, particularly in urban areas, where more people are now choosing premium-grade rice.
Bulog is optimistic that the presence of premium SPHP rice can strengthen the effectiveness of market operations whilst maintaining price stability and meeting people’s need for quality rice at affordable prices.