"When compared to price increases between months, the four months when we carried out the rice assistance was the lowest as compared to the previous four months' period," Head of the Operational Planning and Public Services Division of state-owned logistics firm Perum Bulog Epi Sulandri noted in Jakarta on Wednesday.
Based on the Statistics Indonesia (BPS) data, Bulog recorded an average change in retail rice price during the July-October 2022 period of 1.12 percent.
Thereafter, in the following months from November 2022 to March 2023, the average change was recorded at 1.67 percent.
Meanwhile, in March-July 2023, which was the period for rice assistance distribution, despite retail rice prices having experienced a slight increase as compared to 2022, there was price stability that helped control inflation. During this period, the average change in rice prices fell to 0.4 percent, Sulandri stated.
Moreover, she outlined other impacts of the rice assistance including the creation of downstream facilities for domestic rice production, increasing the economy and welfare of farmers, boosting farmers' production, and supporting the absorption of rice grains by domestic farmers for government rice reserve (CBP).
“When we meet with the beneficiaries, the money worth the price of rice can be used to buy side dishes, pay for children's school fees, go to the dentist, and others. There are impacts that are immediately felt by beneficiaries because they can save money worth 10 kilograms of rice," she remarked.
Sulandri noted that realization of the first phase of rice assistance distribution, which began at the end of March, had reached 640,590 tons, or 100 percent of the highest limit set by the government.
Despite numerous obstacles in distribution in the form of geographical conditions and inaccuracies in transportation mode schedules, Sulandri stated that the government agreed to extend the distribution of rice assistance for the October-December 2023 period.
"For the next batch, we will distribute the aid to the same beneficiaries. We will prepare a better timeline to distribute the aid and conduct transporter auctions. We are sure we can start on October 1," she remarked.
Head of the National Food Agency (Bapanas) Arief Prasetyo Adi has assigned Perum Bulog to prepare the distribution of rice assistance through letter number 171/TS.03.03/K/7/2023, dated July 21, 2023, concerning Assignment of Distribution of Government Food Reserves in the framework of Rice Assistance.
Similar to the first period, each beneficiary family will receive 10 kilograms of rice each month for three months, totaling 30 kilograms of rice.
The distribution of rice assistance is expected to become a social protector for people from the low-income bracket to maintain their purchasing power and drive efforts to control food inflation during Christmas 2023 and New Year 2024.
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Translator: Kuntum Khaira R, Resinta S
Editor: Rahmad Nasution
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