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Lampung Provincial Government Provides Rice Price Subsidies Through Market Operations

Kamis, 05 Oktober 2023 - 20.44 WIB

Photo: Illustration.

Kupastuntas.co, Lampung English - The Lampung Provincial Government plans to again provide price subsidies for rice commodities which will be distributed through a market operation scheme.

Assistant II for the Economy and Development of the Lampung Provincial Government, Kusnardi, said that currently his party is calculating how much subsidy will be given.

"We plan to re-subsidy medium rice to the community. We are currently working out how much it will be and what the mechanism will be and where the funding will come from," said Kusnardi, when asked for information in his office, Thursday 5 October 2023.

He said that the calculations carried out must be careful. This is because the price of rice on the market currently continues to fluctuate.

"We are currently calculating the nominal because currently the price of raw rice is still volatile. However, if we refer to the HET (highest retail price) for medium rice, IDR 11,900 per kilogram," he said.

Kusnardi explained that some time ago the Lampung Provincial Government had also held a market operation with the price of rice being sold at IDR 10,400 per kilogram.

"Yesterday we also held a market operation where we sold IDR 10,400 per kilogram. The general price is IDR 10,900 for medium rice. So maybe the price is around that much," he added.

He said that the Governor of Lampung, Arinal Djunaidi, hopes that the rice that will be used for market operations will be local rice.

"If possible, the rice will come from Lampung's own products. This will strengthen our rice reserves, because the rice stored by farmers should not be used yet. We are collaborating with local rice mills," he said.

He hopes that the provision of rice subsidies can be realized soon.

This is because the price of rice continues to increase and is an effort to reduce market pressure.

"Because the revised APBD will be coming down soon, hopefully as soon as possible. Because the price of rice continues to increase. Hopefully this can reduce market pressure and also help people in the food sector," he said.

He also said last September that the main commodities contributing to yoy inflation in September 2023 included rice, filter clove cigarettes, intra-city transportation, garlic and white cigarettes.

"The highest inflation contributed by rice is not only occurring in Lampung but also throughout Indonesia. Nationally, harvests are now starting to decline and dry conditions are causing productivity to fall," he said.

Previously, the Bank Indonesia Representative Office for Lampung Province stated that rice commodities contributed to inflation in September 2023 amounting to 0.312 percent.

Judging from the source, inflation in September 2023 was driven by an increase in prices for several commodities, one of which was rice, with an inflation contribution of 0.312 percent when viewed from month to month.

Meanwhile, the National Food Agency awarded 16 Cheap Food Movement (GMP) titles to Lampung Province. This program uses deconcentration funds from the central government.

Commodities sold in the Cheap Food Movement include strategic staple foods such as rice, cooking oil, chicken, beef, red chilies, cayenne peppers, shallots, garlic and eggs.

"The deconcentration budget for the Cheap Food Movement is from Bapanas. We have carried out this movement and will continue until December. The main commodities are strategic staples," said the Head of the Lampung Province Food Crops and Horticulture Food Security Service, Bani Ispriyanto, recently. -recently.

Bani said that the Cheap Food Movement in Lampung Province was held 16 times at different points, and spread across districts/cities in Lampung.

"We have implemented it 16 times, and so far it has been implemented 10 times. And this will continue until December to reduce inflation," he said.

Bani explained that in implementing the Cheap Food Movement, his party collaborated with relevant stakeholders ranging from Bulog to Ciomas.

"So we are here collaborating with relevant stakeholders according to their respective fields. So that implementation in the field can run well," he said. (*)