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s part of the efforts to cut the distribution chain and, therefore, stabilize supply and prices, the Central Java administration plans to build a central rice market next year in Semarang, the provincial capital.

Central Java Governor Ganjar Pranowo said the central market would become a place for people from across the province, to sell various types of rice, the country’s staple food.

“They can be individual farmers, farmers’ groups or cooperatives. That way they will have power and be more aggressive so that the price of rice will also be higher,” Ganjar said recently.

The governor added that as the central rice market would be capable of cutting short the distribution chain and controlling prices, food inflation would also be easy to keep in check.

Ganjar, a politician from the Indonesian Democratic Party of Struggle (PDI-P), said there were eight agents in the distribution chain of rice, each of whom took a small cut. However, as the chain is long, the rice price ends up substantially higher.

The market will be built at the State Logistic Agency’s (Bulog) Tambakaji rice warehouse in Ngaliyan, Semarang. The facility has six warehouses on a 3-hectare plot. It has spacious parking and is also close to Bulog’s Randugarut rice warehouse.

It has access to the wide northern coast (Pantura) highway and is also close to Kendal seaport, Ahmad Yani Airport and toll roads, connecting Semarang to Jakarta, Surabaya in East Java and Surakarta also in Central Java.

The facility will be designed with kiosks and other supporting facilities including warehouses, auction hall, weigh bridge and packing machine.

“Bulog visited the location yesterday. It plans to conduct a two-month feasibility study,” Ganjar said.

Meanwhile, head of Central Java Trade and Industry Agency, M Arif Sambodo, said his team had met the Trade Ministry for the preparation of the central rice market development, to be funded by the central government.

Djoni Nur Ashari of Bulog’s upper stream industry and business development division said similar central rice markets would also be built in other provinces including East Java, West Java, West Nusa Tenggara, Lampung and South Sumatra.

“The pilot project is being conducted in Pare-Pare, South Sulawesi,” said Djoni, adding that the development of the facility in Pare-Pare was 50 percent finished.

He said Central Java was selected for the facility because the province had a relatively large production volume of rice as well as good quality milling yields.

“Central Java is known as a supplier of rice for other regions in Indonesia. It has a seaport in Semarang as well as post-harvest facilities in a number of regencies,” Djoni said.