REPUBLIKA.CO.ID, JAKARTA --- The Indonesian government's plan to import rice was canceled until June 2021. The cancellation of rice imports occurred amid the continuing drop in the price of unhulled rice at the farm level.
President Joko Widodo (Jokowi) ensures that the government will not import rice until June 2021. Jokowi said that it had been almost three years since Indonesia had stopped importing rice.
"I assure you that until June 2021 there is no imported rice will enter Indonesia," said Jokowi in his press statement, Friday (26/3).
Jokowi requested the polemic regarding rice imports can be stopped immediately. This polemic actually make the selling price of grain at the farmer level drop sharply.
The President also ensured that Bulog would absorb rice from farmers. He will ask the Minister of Finance to help them with the budgeting plan.
"I know we are entering the harvest period and the price of rice at the farm level is not as expected," he said.
Furthermore, Jokowi said that Indonesia is indeed cooperating with Thailand and Vietnam regarding rice procurement. However, this cooperation is only carried out to anticipate the situation in the current pandemic situation.
The polemic of the rice import plan is currently being discussed. The government's plan to maintain rice price stability through rice imports actually raises pros and cons from various groups.
The government plans to import 1 million tons of rice this year. Of that amount, as many as 500 thousand tons are allocated for government rice reserves (CBP), while the remaining 500 thousand tons are devoted to Bulog's commercial rice.
Minister of Trade Muhammad Lutfi said the plan to import rice was only to stabilize rice prices, maintain stability, and also secure food security.
The government does not want that rice prices to increase during the pandemic due to a lack of supply and at the same time will not reduce the price of dry rice for farmers.
However, according to the Trade Minister, the government will still prioritize domestic production produced by farmers. Thus, the figure of 1 million tonnes of rice imports is an interpretive figure only.
Previously, Bulog President Director Budi Waseso emphasized that Bulog would not necessarily carry out government assignments related to rice imports. Budi reasoned that Bulog would still prioritize domestic production and the company's ability to store rice.
As the main harvest season enters, he said, rice stocks will certainly return to more than 1 million tons.
It is predicted that the total absorption of farmers' unhulled rice by Bulog in the first harvest season for the March-April 2021 period will be 390,800 tons.
Meanwhile, the total absorption of grain that has been realized from January to March 14, 2021 is 70,940 tons.
The total capacity of Bulog's warehouses throughout Indonesia is actually much larger, reaching 3.6 million tons. However, Bulog's rice market share in the distribution of the prosperous rice aid program (rastra) of 2.6 million per year has been lost.
This is because the government's rice aid program has been changed in which private companies can also supply via e-warungs.