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Jakarta Post

Getting richer, more Indonesians shift to premium rice

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, November 12, 2018   /   12:55 pm
Getting richer, more Indonesians shift to premium rice Customers browse the rice varieties on offer at the Cipinang Central Rice Market (PIBC) in East Jakarta in this file photograph. (Antara/Muhammad Adimaja)

Following the consumption trend of middle-income consumers, rice producers have started to distribute more premium rice instead of medium-quality rice, a report submitted to the Indonesia Stock Exchange (IDX) says.

The report from rice producer PT Buyung Poetra Sembada (HOKI) shows that the company’s revenue increased 17.78 percent from January to September to Rp 1.06 trillion (US$72.14 million), compared to figure in the same period last year, which was at Rp 900.05 billion

The report from HOKI, which focuses on selling premium rice, also shows a 15.6 percent increase from Rp 941.3 trillion to Rp 1.09 trillion.

Agriculture expert Khudori said that rice was no longer a single commodity and was not viewed as "inferior" by middle-class consumers, which preferred to consume premium rice rather than medium-quality rice.

“In the last few years, the price trend for rice has been determined more by premium rice, not medium-quality rice. When the rice price increases, [consumers] did not shift to rice that were priced lower, instead, they reduced the volume of their purchases,” Khudori said as quoted by

“The [consumer] preference has been shifting. The government policy, therefore, should also change to be more effective,” he said.

The number of middle-income consumers has been growing, and is projected to grow from 40 million at present to 200 million by 2045, said National Development Planning Minister/National Development Planning Board (Bappenas) head Bambang Prodjonegoro.

A study in April 2016 that involved 1,977 respondents shows the majority of respondents ranked rice the highest among daily consumption choices. (bbn)