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Bulog initiates measures to tackle rice shortages in modern retailers

Source
Jakarta Globe - March 12, 2024

Vinnilya, Jakarta – In recent weeks, rice stocks have vanished from modern retailers. Bayu Krisnamurthi, the Director-General of the State Logistics Agency (Bulog), attributes the shortage to pricing issues.

Existing regulations on the highest retail price (HET) compel modern retailers to comply, refraining from selling rice above the HET. However, the current market prices have surpassed the HET.

"As a result, they don't stock up, they don't buy, and naturally, they stop selling. But if we look at traditional markets, the rice supply is sufficient. It may be slightly more expensive, but the quantity is ample," explained Bayu Krisnamurthi to B-Universe on Tuesday.

To address the rice supply shortage in modern retailers, Bayu stated that Bulog would replenish its stocks by ensuring that the delivered rice prices are below the HET. Additionally, incentives will be provided to modern retailers to ensure they maintain their profit margins.

"This is crucial for them, so that's what we're doing. Until now, Bulog has distributed almost 12,000 tons, specifically in Greater Jakarta, for modern retailers," clarified Bayu.

Furthermore, Bayu suggested that historical patterns indicate that in situations like these, the government typically offers a relaxation of the HET. This temporary relaxation allows modern retailers to sell above the HET, and afterward, prices return to their original levels.

"It will help clear the existing stock, which has been priced higher than the HET, and can be delivered to the public," he added.

Bayu emphasized that the public should understand that prices in modern retail might be slightly higher during this period, but the products will be available.

Another solution suggested by Bayu is to distribute Bulog rice, reasonably priced (in line with the HET), to rice mills or distributors that usually supply to modern retail. They can then transact at a price compliant with government regulations.

"So, these measures hopefully will increase the supply in modern retail, but the most important thing is the ongoing harvest and the decreasing prices," he said.

Bulog assures adequate rice supply ahead of Ramadan

Bulog ensures that rice stocks remain secure as the country approaches the month of Ramadan and Eid al-Fitr when demand is usually high.

"The good news is that the current community stock has started to harvest, and there is already production coming from Demak, Sragen, Indramayu, Karawang, and several areas in East Java such as Ngawi and others," stated Bayu.

Bayu mentioned that the rice produced in these regions has reached consumer wholesale markets like Pasar Induk Beras Cipinang and producer wholesale markets like Pasar Induk Johar Karawang. The supply of rice is quite abundant, coupled with a noticeable decrease in prices at wholesale markets.

According to Bayu, the rice stock controlled by Bulog and the government as of March 8, amounts to 1.25 million tons.

To maintain stock availability and price stability, the government has set the total rice import quota at 3.6 million tons throughout 2024. To fulfill this quota, Perum Bulog will import rice from various Asian countries, including India.

Bayu highlighted that ongoing intensive communication with importing partner countries is crucial to make Indonesia a priority destination. Bulog is also studying the harvest period and characteristics in each country to ensure the arrival of rice supplies to Indonesia.

Source: https://jakartaglobe.id/business/bulog-initiates-measures-to-tackle-rice-shortages-in-modern-retailer

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