Indonesian Political, Business & Finance News

The cost of a prized and pricey plate of rice

| Source: JP

The cost of a prized and pricey plate of rice

Text and photos by PJ Leo

JAKARTA (JP): A meal is not a meal without a plate of rice to
most people here. It is the food which provides them with the
energy to get through their day.

Naturally, the public, especially the poor, have been thrown
into great distress due to the skyrocketing price of the staple
food. Before the crisis, a kilogram of medium-quality rice cost
Rp 1,000. Today, the price has quadrupled, and even low-quality
rice is costly.

Not surprisingly, hundreds flock to the local office of the
Logistics Agency whenever it launches market operations selling
rice at the old price of Rp 1,000/kg. They endure a sweltering
sun for the opportunity to purchase between three and five
kilograms.

The price is not the only concern for people, who are also
worried over rumors of impending shortages.

Everybody knows the country must still import rice. It leaves
many wondering why Indonesia, an agricultural country, cannot
produce enough rice to feed its own people. Is it because there
are not enough paddy fields or the land is not fertile enough?
The answer is more complex, with different factors contributing.

The area of paddy fields, especially in Java and Bali, is
dwindling in the wake of the "development process," converted
into industrial and residential complexes. Many farmers in Java,
the country's rice bowl, now earn their living on construction
projects or in factories.

Another factor in the drop in production is harvest failure
resulting from drought, flooding and pests of locusts, rats and
grasshoppers.

The State Logistics Agency, which has the duty to secure
sufficient rice stocks, obtains them not only from local farmers,
but also from abroad.

When the price increases abnormally, the agency intervenes in
the market by selling the stock to stabilize the price.

Critics charge these efforts are often undermined by the old
problems of corruption and collusion, which keep the prices high.

No doubt people on the street, with scant understanding of
international market fluctuations and bugaboos in the
bureaucracy, are baffled as prices continue to soar. All they can
do is hope and pray they can still afford a prized -- and pricey
-- plate of rice tomorrow.

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