KPPU: Rice Price Increases Because Harvest Decreases

INDUSTRY.co.id - Surabaya - Commission of Business Competition Supervisory Office (KPPU) of Surabaya Regional Representative assessed the increase of rice price observed in some markets caused by the declining harvest of rice farmers.

KPPU Surabaya along with a number of related agencies held an inspection in several markets in Surabaya on Tuesday (16/1/2018) and found the price of rice ranged from 11 to 13 thousand rupiah per kilogram, which means an increase between 1,000 - 2,000 rupiah per kilogram.

"Indeed at the moment along with the decline in the harvest, so the supply becomes more reduced than before, which causes the price to rise in the market," said Head of KPPU Surabaya Dendy Rakhmad Sutrisno to the media crew on the sidelines held an inspection.

He explained that currently most rice farmers are still in the growing season so that the supply in the market is reduced which in turn triggers the rice price increase.

To anticipate the increasing price of rice in the market, KPPU Surbaya supports the Ministry of Trade through the Public Corporation of Logistic Affairs Agency (Bulog) to conduct market operation of special medium rice, and also to supply rice to Bulog's traders.

"The steps taken by Bulog are very much expected to be a counterweight to rising prices," he said.

KPPU Surabaya held a joint inspection of the Department of Industry and Trade, East Java Regional Food Police Unit, Bulog Divre of East Java, and Surabaya Surya Market.

In the inspection, the price of Bulog rice is still stable at around Rp9 thousand per kilogram.

According to Dendy, the inspection of basic necessities is always routine when there is scarcity or price increase.

"Actually this is not the first inspection, KPPU Surabaya, the National Police's Food Task Force, as well as some related stakeholders (stakeholders) have routinely conducted such supervision," he said.