REPUBLIKA.CO.ID, JAKARTA -- The government has suspended its plan to lower the price ceiling for medium quality rice from Rp9,450 per kg to Rp8,900 per kg in the Java region. The Trade Minister, Enggartiasto Lukita, said that a meeting held in the Coordinating Ministry for Economic Affairs had decided that the government would first observe the commodity's price movement.

"We will see the progress. The meeting said we would have to penetrate the market first. To pour rice supply to the market," he said here on Tuesday.

The government required all traders to sell medium quality rice at the ceiling price. The State Logistic Agency (Bulog) would supply the commodity in regions that did not have adequate supply.

The Trade Ministry and the Food Task Force would monitor supply in all the regions to ensure rice was sold at its ceiling price. "The profit margin for traders at Rp400 to Rp500 per kg is normal. Thus we will question traders who refuse to sell (at the ceiling price)," he added.

The government set a price ceiling for medium quality rice to control inflation. The price was set at Rp9,450 per kg from September 1, 2017, for medium quality rice in Java, Lampung, South Sumatra, Bali, West Nusa Tenggara and Sulawesi. The ceiling for premium quality rice was set at Rp12,800 per kg.

For the Sumatra region, except Lampung and South Sumatra, East Nusa Tenggara and Kalimantan, the medium quality rice ceiling price was set at Rp9,950 per kg and that for premium quality rice at Rp13,300 per kg.

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