Indonesia prepares one million tons of rice to support purchasing power
The subsidised rice will cost Rp12,500 per kilogram, compared with market prices of Rp15,000 to Rp17,000, a minister said.
Indonesia's government has set aside one million tons of subsidised rice in anticipation of higher prices and to maintain purchasing power, according to Coordinating Minister for Food Affairs Zulkifli Hasan.
Addressing a food assistance distribution event in Palembang, Zulkifli said the rice would be sold under the Food Supply and Price Stabilization (SPHP) programme. Buyers would pay Rp12,500 per kilogram, while prevailing market prices ranged from Rp15,000 to Rp17,000 per kilogram, he said.
Distribution would use the outlets of Perum Bulog, the state-owned logistics company, alongside traditional markets participating in the subsidised rice network, Zulkifli added.
He linked the policy to the risk that a prolonged dry season could reduce rice production, with possible consequences for supply and market prices.
The president had approved the provision of subsidised rice after discussions involving the Coordinating Ministry for Food Affairs, the Agriculture Ministry and the Finance Ministry, Zulkifli said.
