REPUBLIKA.CO.ID, JAKARTA -- The decline in rice prices after President Joko Widodo (Jokowi) visited state-owned logistics board Bulog in Jakarta indicates that a recent increase in rice price was caused by speculators, agriculture observer Khudori said.

"One day after Pak (Mr) Jokowi visited Bulog, rice prices declined by some Rp150 to Rp500 per kilogram. This indicates earlier there were some speculative factors in play," Khudori stated here on Monday.

According to him, speculators fear that the government might release its rice stocks and bring down their prices in the market.

Speculators who have so far withheld their stocks will receive only smaller profit if they do not release their rice stocks immediately because then Bulog will distribute its stocks.

"At Cipinang wholesale rice market in Jakarta, the price of rice dropped by Rp500 per kilogram. This means speculators have released their stocks," he explained.

President Jokowi earlier inspected Bulog's rice warehouses at Kelapang Gading in North Jakarta where he launched the rice for the poor (Raskin) program and some market operations.

The country has 1.4 million tons of rice stocks, which will be adequate until March-April when harvest season starts, the President revealed on the occasion.

"You should not think we are short of rice stocks. We will always have enough stocks and we will release it no matter how much will be the requirement," he remarked on Wednesday (Feb 25).

The President also promised to conduct market operations and distribute some 300 thousand tons of rice in the market.

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