Indonesia's Medium Rice Prices Surpass Retail Ceiling

TEMPO.CO, Jakarta - The Indonesian National Food Agency (Bapanas) recorded the national medium rice prices exceeding the highest retail price (HET) on June 9, 2025. The average cost of this rice reached Rp13,906 per kilogram.

This figure is far from the HET set by the government. The HET for Zone 1, consisting of Java, Lampung, South Sumatra, Bali, West Nusa Tenggara, and Sulawesi, is Rp12,500 per kilogram. Meanwhile, the average medium rice price in these areas reached Rp13,386 per kilogram.

One of the increases is seen in Jakarta. Bapanas' data shows that the average price in the capital reached Rp12,952 per kilogram. However, observations at the Cipinang Rice Market, East Jakarta, show higher prices.

Riki, an employee at the rice wholesale center in the Cipinang Rice Market, stated that a 50-kilogram bag of medium rice is now priced at Rp650,0000 - Rp725,000 per kilogram. This means that the medium rice prices reached Rp13,000 to Rp14,500 per kilogram. "The normal price is less than Rp14,000 per kilogram. Most is between Rp11,000 and Rp12,000," said the 19-year-old man to Tempo on Monday, June 9, 2025.

The HET for medium rice in Zone 2, which includes Sumatra other than Lampung and South Sumatra, East Nusa Tenggara, and Kalimantan, is Rp13,100 per kilogram. However, Bapanas recorded that the commodity price had already reached Rp14,200 per kilogram.

In Zone 3, which includes Maluku and Papua, the government has set the HET at Rp15,854 per kilogram. However, the rice prices there have reached Rp15,854 per kilogram.

The Executive Director of the Center of Economic and Law Studies, Nailul Huda, stated that the spike in government rice purchase prices (HPP) for harvested dried unhusked rice (GKP) has triggered the high medium rice prices. He mentioned that the HPP for GKP is Rp6,500 per kilogram. However, nationally, the price has risen to Rp6,711 per kilogram.

According to Huda, the increase in the price of harvested, dried, unhusked rice is partly due to the government absorbing two million tons of rice in May 2025. This condition has left private companies out of stock at the farmer level.

The high demand for harvested dried unhusked rice from private companies and the abundant rice supply absorbed by Bulog are the reasons for the surge in commodity prices. "An increase in GKP at the farmer level will lead to higher rice prices for consumers," said Huda.

In addition to the high demand for GKP, Huda stated that the end of the harvest season also triggers a price hike. He hoped the government would be ready to conduct market operations by July and August. Rising consumer rice prices are a trend.

Due to the increase in medium rice prices, Huda estimated that volatile goods inflation will slightly increase. However, the surge will not significantly affect overall inflation. "It will remain low due to weak purchasing power," he said.

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