• News Archive
  • Simaster
  • Webmail
  • Directory
  • Crisis Center
  •  English
    • Indonesia
Universitas Gadjah Mada Universitas Gadjah Mada Universitas Gadjah Mada Universitas Gadjah Mada
  • Education
    • Doctoral dissertation
    • Inauguration of Professor
    • Graduation
  • Achievement
  • Research and Innovation
    • Research
    • Innovation
  • Campus Info
    • Cooperation
    • Seminar and Workshop
    • Student Community Service Program
    • Other
  • News Report
  • Home
  • News Report
  • Government Urged to Revise Rice Retail Price Regulations

Government Urged to Revise Rice Retail Price Regulations

  • 28 July 2017, 09:05 WIB
  • By: Marwati
  • 2127
Pakar UGM: Pemerintah Harus Merevisi Permendag Tentang HET Beras

The confiscation of rice produced by PT Indo Beras Unggul (IBU) company recently has stirred talks related to pricing, monopoly indications, including government policy. UGM agricultural experts considered the government policy in regulating rice pricing including the highest retail price is improper.

“The highest retail price of Rp9,000/kg is too low which will not drive the private businessmen to produce good quality rice. So, the government ought to revise the rice regulations,” said Dean of Faculty of Agriculture UGM, Dr. Jamhari, S.P., M.P., in a press conference on Thursday (27/7) in the Multimedia room.

Jamhari said the rice problems that had emerged were actually an effect of government fundamental policy change after the Logistics Agency (Bulog) was changed from being a department to a business entity. Such change has made rice price stabilisation more flexed, hence extending deviation.
Other issues are law no. 5 year 2015 that fixes government purchase price at Rp7,300/kg for farmers and law No. 47 year 2017 at Rp9,000/kg for consumers.

He has analysed there were issues in 8% of regencies being monitored across Indonesia with medium rice price still under government purchase price, average retail price at traditional market even surpassing highest retail price or Rp9,500/kg, while average retail price of premium rice at Rp11,500/kg.

“These showed that there are still price errors at the farmer and consumer levels. Investigation needs to be done whether the government purchase price and highest retail price are too low or whether there is monopolistic behaviour of traders,” said Jamhari.
Amidst the polemics, he warned government and society not to carelessly determine further steps. He asked for accurate solution to resolve rice pricing, not just giving an instant response by importing rice.

Jamhari added the solution for the short run is to adopt new technologies and institutional enhancement to improve national rice production quality.

Agricultural Economy expert from UGM, Prof. Dr. Ir. Masyhuri, recommended abolition of highest retail price for premium rice.

“Government should not fix the price for premium rice, let the market do it. Impoverished people are already protected by rice subsidy and e-voucher,” he said.

He also straightened out some misconception that the rice confiscated was subsidy rice, but rice that had been purchased from farmers. On the price that is higher than highest retail price, he said this was normal if compared with the purchase price. This case also happens in modern market. So, he asked why it was just one trader being arrested, which is unfair. To be fair, all modern markets selling rice above highest retail price should also be under arrest.

 

Related News

  • Government Asked to Improve National Rice Policy

    Tuesday,25 September 2018 - 8:39
  • Approaching Idul Fitri, Food Price Increase Burdens Small People

    Monday,08 August 2011 - 13:51
  • Prof. Catur Sugiyanto: The Assurance of Rice Price Encourages Farmers to Adopt Organic Fertilizer

    Thursday,03 March 2011 - 13:11
  • Reform in Welfare Rice toward Non-cash Food Aid

    Friday,09 June 2017 - 8:20
  • UGM Observer: Data of National Rice Provision Policies Have to be Accurate

    Monday,05 February 2018 - 16:14

News Releases

  • Geography Alumna’s Aromatic Telon Oil Habbie Named 2023 Indonesia Brand Champion 03 February 2023
    Novita Anggraeni, an alumna of the UGM Faculty of Ge
    Salma
  • Bimasakti UGM Kicks Off Hybrid Technology Research 03 February 2023
    Bimasakti UGM has started researching hybrid technol
    Salma
  • 18,964 UGM Students Receive Scholarships, Director of Student Affairs Says 20 January 2023
    Universitas Gadjah Mada (UGM) annually allocates hundreds
    Salma
  • Prof. Budi Setiadi Daryono Recounts Origin of His Apple Melon Cultivar 'Hikapel' 16 January 2023
    In 2012, a team of researchers from the UGM Facult
    Salma
  • UGM Graduate Fajar Kelana Named Top 20 International James Dyson Award Winner 13 January 2023
    Fajar Sidik Abdullah Kelana, an alumnus of UGM and
    Salma

Event

No latest event at this time

Universitas Gadjah Mada
UNIVERSITAS GADJAH MADA
Bulaksumur Yogyakarta 55281
   info@ugm.ac.id
   +62 (274) 588688
   +62 (274) 565223
   +62 811 2869 988

PARTNERSHIP

  • Alumni
  • International Affairs

ABOUT UGM

  • Rector's Welcome
  • History
  • Vission and Mission
  • The Board of Executive
  • Management

VISIT UGM

  • Campus Map
  • Event

REGISTRATION

  • Undergraduate
  • Graduate
  • Vocational School
  • Professional Program
  • International Program

© 2023 Universitas Gadjah Mada

PRIVACY POLICYCONTACT