In addition, the quality of medium rice available in the market varies widely. The Head of the National Food Agency, Arief Prasetyo Adi, mentioned that discussions have taken place with relevant parties to assess the Highest Retail Price (HET) for rice. “We consider it carefully. The HET for medium rice, if the price of paddy reaches Rp 7,000, also needs to be evaluated. A price increase is certainly a possibility. Since April, I have been gathering stakeholders in the rice sector to discuss how much the HET should be if the price of paddy hits Rp 7,000. If a review of the medium rice price is indeed necessary, we will conduct that review,” he stated during an interview at the Office of the Food Coordination Ministry in Central Jakarta on Tuesday, July 15, 2025.
He emphasized that any increase in medium rice prices would be based on a fair assessment for farmers, millers, and consumers alike. “The price should be balanced for both millers and consumers,” he added.
On another note, he acknowledged the rising rice prices, attributing it to the increase in paddy costs and practices by milling operations. According to him, the surge in rice prices is partly due to competitive bidding amongst mills for paddy purchases. While this bidding may benefit farmers in the short term, it ultimately inflates production costs. The government has set the purchase price for harvested dry paddy (GKP) at Rp 6,500 per kilogram.
“Why are production prices high? It’s because mills are aggressively bidding for paddy. For instance, if the government price is Rp 6,500 and one buyer offers Rp 6,800, then another offers Rp 7,000, and so on, with some bids climbing to Rp 7,600-7,800 per kilogram. This is good for farmers, but they need to consider that if they buy premium paddy, production costs can soar to Rp 14,900 per kilogram,” he clarified.
He believes that mills should be buying paddy in bulk during the harvest season at a price that aligns with the government-published price. This would ensure that stock for production during planting season remains adequate, eliminating the need for frantic bidding wars at inflated prices.
As a point of reference, the price of medium rice has indeed recorded an increase, with the national average currently at Rp 14,317 per kilogram. This amount is 14.54% above the HET for medium rice set at Rp 12,500 per kilogram. Similarly, the average national price for premium rice is noted at Rp 16,602 per kilogram, which is 7.8% over the HET for premium rice at Rp 14,900 per kilogram. The average national price for harvested dry paddy also remains high, at Rp 6,766 per kilogram, which exceeds the HPP of Rp 6,500 per kilogram.
Rice prices are said to be on the rise when they exceed the HET. In Zone 1, the HET for medium rice is set at Rp 12,500 per kilogram and for premium rice at Rp 14,900 per kilogram, covering regions like Java, Lampung, South Sumatra, Bali, West Nusa Tenggara, and Sulawesi. Zone 2 has an HET of Rp 13,100 per kilogram for medium rice and Rp 15,400 for premium rice, covering parts of Sumatra other than Lampung and South Sumatra, as well as East Nusa Tenggara and Kalimantan. Meanwhile, in Zone 3, the HET stands at Rp 13,500 per kilogram for medium rice and Rp 15,800 for premium rice, which includes Maluku, Papua, and surrounding areas.
