Jakarta, CNBC Indonesia – Deputy for Food Availability and Stabilization of the National Food Agency (Bapanas) I Gusti Ketut Astawa explained the reasons for the government’s decision to import large-scale rice this year. Reaching a total of 3.5 million tons, where the realization of income to the Republic of Indonesia is still ongoing.

As is known, the government has decided to increase the rice import quota assigned to Perum Bulog by 1.5 million tons. Thus, the total rice import assignment by Bulog this year reached 3.5 million tons.

Even though it has not been fully realized, this year’s rice import assignment is a new record high for Indonesian rice imports in 2 decades.

The previous record occurred during the leadership era of President Susilo Bambang Yudhoyono (SBY) who ruled during 2004-2014. At that time, the record for rice imports reached 2,750,476.2 tons. This figure was recorded in 2011.

“The government is not importing illegal fishing rods, but it has been calculated carefully and measuredly with all its plans for 2023,” said Ketut in Squawk Box, CNBC Indonesia (Monday, 06/11/2023).

Ketut explained that there were 4 reasons behind the government’s decision to import rice, namely:

1. For food aid needs

The government distributed rice assistance to 21.3 million beneficiary families (KPM), 10 kg each for 3 months. Where, the first distribution will be carried out in March-May 2023, then continued in September-November 2023. And the plan is to add another month in December 2023.

“This means that the government alone needs around 1.5 million tonnes of food aid,” said Ketut.

2. To stabilize food prices

On the other hand, he continued, the government is also pouring rice into the market to control price increases. Where, the government distributes rice through market operations or the Food Supply and Price Stabilization (SPHP) program to the main market, Cipinang Rice Main Market (PIBC), as well as traditional and modern retail markets.

“We predict that by the end of the year this activity will need 1.2 million tons,” said Ketut.

“This means that for these 2 programs, 2.7 million tons are needed,” he continued.

3. For final stock

Meanwhile, he said, the government has also instructed Bulog to have final stock for carry over or initial stock in 2024 of at least 1.2 million tons.

“So under these conditions, the government assigned Bulog to import rice, in addition to looking for rice from domestic production,” said Ketut.

4. Resist the rate of price increases

According to Ketut, currently rice in the country cannot be said to be in a critical condition.

“The condition of our rice is not critical, the availability of rice in the community is still very sufficient. Indeed, when CBP (government rice reserves) needs to be increased, there is the potential for price increases,” he explained.

Efforts to increase stocks at Bulog with imports, said Ketut, are a strategy to prevent price increases from getting out of control.

“Because if Bulog joins in again (fighting over domestic rice supplies), it will be able to spur price increases,” concluded Ketut.

[Gambas:Video CNBC]

(dce/dce)