Rice Price Hike: Minister Compares to Japan
- Recent increases in the price of rice are causing concern among Indonesian communities, prompting calls for government attention.
- The minister's comments came during a work meeting with Commission IV of the House of Representatives, chaired by Titiek Soeharto.
- A significant factor in the deliberation is the considerable cost of food subsidies, currently totaling Rp 150 trillion.
Indonesia Grapples with Rising Rice Prices, Government Weighs Intervention
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Rising Costs and Public concern
Recent increases in the price of rice are causing concern among Indonesian communities, prompting calls for government attention. While acknowledging a recent price increase,Agriculture Minister Amran Sulaiman maintains that rice remains affordable in Indonesia,particularly when compared to global benchmarks. He cited Japan as an example, stating that rice currently sells for approximately Rp 100,000 per kilogram there, as of Thursday, August 21, 2025.
Debate Over Price Equalization and Subsidies
The minister’s comments came during a work meeting with Commission IV of the House of Representatives, chaired by Titiek Soeharto. Soeharto questioned minister Sulaiman about potential plans to unify the prices of premium and medium-grade rice. Amran explained that the government has been discussing the possibility in limited coordination meetings (Rakortas), but a final decision has not yet been reached.
A significant factor in the deliberation is the considerable cost of food subsidies, currently totaling Rp 150 trillion. The Minister emphasized the importance of carefully considering how these subsidies are distributed, noting that rice constitutes a large portion of the national food budget. He explained that a targeted approach, focusing on approximately 48-40% of the population as steadfast by the Central Statistics Agency (BPS), would require around Rp 60 trillion in state funds. Maintaining price controls (HET) and the purchase price guarantee (HPP) are seen as vital to preventing further price instability.
Comparison to Japan Questioned
Soeharto challenged the Minister’s comparison to Japan, pointing out the significant disparity in per capita income between the two countries. “It can’t be compared to Japan, sir. The income per capita is also different,” she stated. Amran acknowledged this point, adding that the government has held four discussions with Bappenas (the National Development Planning Agency) but has yet to finalize a plan. The goal, he said, is to prevent rice prices from exceeding Rp 29,000 and to effectively control and intervene in the subsidized rice market.
Efforts to address food security and affordability are also underway through initiatives like the National Police Chief’s launch of a cheap food movement, offering rice at Rp 11,000 per kilogram.