Bulog Prepares Premium SPHP Rice to Curb Price Increases

Perum Bulog is preparing a premium version of its Food Supply and Price Stabilisation Programme (SPHP) rice as a market intervention instrument to curb the rise in premium rice prices while maintaining national price stability and food availability. President Director of Perum Bulog Ahmad Rizal Ramdhani said the proposal has been submitted to Minister of Agriculture Andi Amran Sulaiman and Coordinating Minister for Food Zulkifli Hasan as material for the government’s next policy formulation. “We suggested to the Minister of Agriculture and the Coordinating Minister for Food to determine the next policy. To address this increase in premium rice prices, we are also holding premium SPHP rice called Beras Kita,” Rizal said when confirmed about premium rice prices reaching Rp 16,000 per kilogram, following a fun match minisoccer event in Jakarta on Saturday. According to Rizal, Bulog is proposing premium SPHP rice under the brand Beras Kita 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 present premium SPHP rice called Beras Kita,” he said. He explained that market operations using medium rice have been deemed ineffective in suppressing prices when it is the premium rice that is experiencing increases. Therefore, a more targeted instrument is required. Bulog has thus drafted a concept for distributing premium SPHP rice to help lower the price of premium rice, which has recently risen in several regions. Ahmad Rizal said the selling price for premium SPHP rice is still awaiting discussion and a decision in a limited government coordination meeting with relevant ministries and agencies. He noted the government will consider the highest retail price for premium rice of Rp 14,900 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 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 according to public needs and demand developments in the field. Rizal stressed that setting a quota from the outset risks being mismatched with actual needs. Therefore, the government is choosing to adjust the distribution volume based on evolving market conditions. He mentioned that the Minister of Agriculture’s directive regarding the provision of 2 million tonnes of commercial rice remains part of the discussion in formulating the distribution scheme for premium SPHP rice. According to him, the composition between medium and premium SPHP rice will be determined based on the results of an evaluation of public needs so that distribution can take place 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 public’s need for quality rice at affordable prices.