Aditya Suharmoko, The Jakarta Post, Jakarta | Fri, 01/02/2009 10:29 AM
President Susilo Bambang Yudhoyono has issued a decree, effective from Jan. 1, 2009, raising the price the government pays to buy rice from local farmers in a bid to ensure national self-sufficiency amid a time of slowing economic activity and a global food crisis.
The presidential decree, issued on Dec. 24, stipulates the government will pay Rp 4,600 per kilogram to buy rice from national farmers, or a 7 percent increase from the current price. The national rice stockpile is controlled by the State Logistics Agency (Bulog).
Meanwhile, the price the government must pay for unhusked paddy (GKGP) increases 9.1 percent to Rp 2,400 per kilogram, and the price of husked paddy (GKG) by 7.2 percent to Rp 3,000 per kilogram.
The government will stabilize domestic rice prices by exporting and importing the grain, thus benefiting farmers and consumers.
Indonesia, Southeast Asia's largest economy, produced 38.6 million metric tons of milled rice in 2008, a 5.5 percent increase from 2007, enabling the country with 230 million people to meet national demand, which was 37 million tons last year.
Bulog's total rice stockpile stood at 1.4 million tons at the end of 2008.
Rice output may jump to 40 million tons this year, which would open the door for the country to export a maximum of 2 million tons, which would be the largest amount in 50 years.
The government plans to maintain national rice self-sufficiency this year by encouraging farmers to use certified paddy seeds and fertilizer, according to deputy to the Coordinating Minister for the Economy, Bayu Krisnamurthi.
Bayu said the government would continue disbursing rice to the poor in 2009.
"We'll provide 15 kilograms of rice over 12 months to 18.5 million poor households," he said.
The presidential decree also encourages investment in rice, but stipulates that owners of rice fields will remain under the supervision of the Investment Coordinating Board.
Bayu said investors should not be allowed to convert existing paddy fields.
Key points in the presidential regulation on rice policy:
- Encourages use of certified top-quality rice seeds and inorganic or organic fertilizers.
- Guarantees aid for farmers suffering losses during post harvest and controls the reduction of irrigation areas.
- Facilitates the rehabilitation of land and water catchment areas.
- New incentives for investment in rice.
- New price for government to buy rice and paddy.
- New policies on stockpiling and distributing subsidized rice for the poor, and on the government's control of its rice reserve to stabilize national rice prices, as well as a policy to prepare for emergency situations and disasters.
- A policy to stabilize the domestic price of rice.
- New export and import policy designed to protect farmers and buyers.
No comments:
Post a Comment