Why Are Rice Prices Still High after Big Harvest?

President Joko "Jokowi" Widodo has raised concern about the high rice prices despite a recent big harvest. "Logically, when the harvest is plentiful, prices should fall. This is what we are looking for. Farmers will be happy, but consumers will scream," he said in Jakarta on Wednesday.

Jokowi suggested importing rice as a possible solution to reducing prices but emphasized that it should only be considered a last resort. The government will explore other ways to balance prices for both farmers and consumers.

The National Strategic Food Price Information Center (PIHPS) reported that the price of medium-quality I rice was Rp 13,100 per kilogram on Feb 13, while medium-quality II rice was Rp 12,950 per kilogram. These prices are still significantly higher than medium rice's highest retail price (HET) at Rp 9,450 per kilogram.

In Jakarta, the Jakarta Food Information website noted that medium-quality or IR III rice is sold at Rp 10,552 per kilogram, while IR I rice is priced at Rp 12.128 per kilogram, Muncul I rice at Rp 12.792 per kilogram, premium rice or Setra I at Rp 13.256 per kilogram, and pera rice at Rp 14.016.