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Rice prices begin to fall as KPPU probes cartel practice among traders
The Business Competition Supervisory Commission (KPPU) has formed a special team to investigate the surge in rice prices, including looking for evidence of potential cartel behavior among rice traders.
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A price sign stands in a vat of rice on Feb. 28, 2024 at a shop in Jakarta, amid a shortage and rising prices of the staple food in the country. (AFP/ADEK BERRY)
T
he price of rice has started to decline in various parts of the country after government efforts in past weeks to focus on distributing the staple food to markets.
At several markets West Java and Jakarta, the prices of medium-grade rice ranged between Rp 10,000 (64 US cents) and Rp 14, 500 per kilogram on Thursday. The prices of premium rice stood at around Rp 16,000 per kg, lower than a week ago when it hit a historic high of Rp 18,000.
“Prices have declined around Rp 1,000 per kilogram. For example, the price of medium-grade rice has fallen from Rp 15,000 to Rp 14,000 per kilogram, and premium [rice] fell from Rp 17,000 to Rp 16,000,” said Uus Heriyanto, head of the Pelabuhan Ratu Markets Agency in West Java.
He attributed the decline in prices to increased supply in the market as well as some rice-producing regions entering the harvest season.
Prices of rice, a staple food for most of the country’s 270 million people, have soared more than 16 percent since last year, when the El Niño weather phenomenon led to decreased rainfall across large parts of Asia, reducing output and increasing inflationary pressure on food for some of the world's most price-sensitive consumers.
Prices were particularly high in Indonesia at the beginning of this year, when several rice production hubs in Central Java were flooded, harvests failed and distribution to markets were delayed.
The rice crisis culminated in the week before the general election: The National Food Agency (Bapanas) postponed the regional distribution of rice aid as part of the social assistance (Bansos) program, amid allegations that President Joko “Jokowi” Widodo was using the program to influence voters in favor of front-runner Prabowo Subianto and running mate Gibran Rakabuming Raka, the President’s eldest son.
