Jokowi Says Will Not Import Rice Until June, Farmers’ Grain Prices Will Increase? The all page

JAKARTA, KOMPAS.com – President Joko Widodo (Jokowi) ensured that the government would not import rice until June 2021. This at the same time answered the uproar over the issue of imports.

Then does Jokowi’s statement have an effect on the market and hoist it price of grain farmers who had fallen after the issue of imports surfaced during the harvest?

Professor of the Faculty of Agriculture of IPB and Chairman of the Association of Indonesian Seed Banks and Farming Technology (AB2TI), Dwi Andreas Santosa, assessed that the statement of the head of state was correct and would have an effect on farmers’ grain prices.

“I think this will immediately have an impact on the price of grain and rice at the farm level,” he told Kompas.com, Tuesday (30/3/2021).

He said Jokowi’s statement ensuring that there would be no imports during the harvest season was really needed by farmers. Because this will have an effect on the market psychology.

“Every statement by a ministerial level official has a market psychological effect, especially if this is the President, surely the influence is quite large,” he added.

Also read: Jokowi: MoU on Rice Imports with Thailand and Vietnam is just a precaution

Moreover, Dwi continued, Jokowi had also ordered Bulog to immediately absorb the farmers’ grain. This direction is considered important for farmers because it provides the potential for an increase in the price of unhulled rice, which had dropped.

He believes, when Bulog comes down to increase its uptake of local farmers’ grain, in a fairly short time the price of grain will improve.

However, his party currently does not know for sure the price of farmers’ grain. Because the survey conducted by his team is still ongoing. However, he believes the price of unhulled rice is starting to improve.

“If Bulog goes down, I can almost confirm that there will be an improvement in the price of unhulled rice and this could be in a short period of only 1-2 weeks,” said Dwi.

Meanwhile, the National Coordinator of the People’s Coalition for Food Sovereignty (KRKP), Said Abdullah, said that currently there is an improvement in the price of unhulled rice for farmers.

Also read: Explanation of Buwas about Indonesia for 3 Years of Not Importing Rice

Several districts experienced an increase in the price of unhulled rice ranging from Rp. 100 to Rp. 200 to close to Rp. 4,000 per kilogram. Among them occurred in West Java, such as Subang, Indramayu, and Karawang.

According to Said, the increase in price is more influenced by the step in the absorption of farmers’ grain by Bulog, although in small quantities.

“The existence of Bulog in the field provides a positive psychology to the market at the farmer level,” he said.

Regarding Jokowi’s statement which confirmed that there would be no imports until June in order to calm the market, according to Said, was the right thing. Although it was felt a little late because the price of unhulled rice had dropped significantly.

“With the President expressing this, market confidence and psychology will be stronger and more positive,” said Said.

Also read: Jokowi Promises No Rice Imports Until June, Susi: After June?

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