FOOD PRICE - JAKARTA. Trade Minister Enggartiasto Lukita and Agriculture Minister Andi Amran Sulaiman on Tuesday kicked off the rice market operation by distributing 75,000 tons of rice in Jakarta.
The medium-quality rice is sold at a ceiling price of Rp 8,100 (60 US cents) per kilogram, the ceiling price set by the government.
The market operation, which will run from October 2017 to March 2019, uses the government rice reserve, said Enggartiasto at Cipinang Rice Wholesale Market in East Jakarta to mark the start of the market operation.
“The market operation is to supply the market with medium rice. We will supply how much rice is needed by the market,” said Enggartiasto, adding that the market operation was being carried out to overcome the scarcity of the medium rice as reported by Antara.
The scarcity occurred after the government imposed the rice ceiling price.
He suspected traders had an adequate stock of medium rice, but they were reluctant to distribute the commodity to the market after the enforcement of the ceiling price. Traders said the ceiling price had reduced their profit significantly.
The market operation in Jakarta would be carried out by Jakarta city-owned rice distributor PT Food Station Tjipinang Jaya in cooperation with several organizations.
Meanwhile, the government institutions involved in the market operation include the Trade Ministry, the Agriculture Ministry, the Jakarta city Micro, Small and Medium Enterprises (MSME) and Trade Agency, the Jakarta Maritime Affairs, Fisheries and Food Sovereignty Agency and the Jakarta Food Taskforce.
