DIGIVESTASI - Rice is a staple that people need to fulfill their daily needs. However, Indonesia is currently facing problems such as soaring rice prices and scarcity. 

Currently, rice prices continue to rise and are known to be at a new all-time high, surpassing the maximum retail price (HET) set by the government in March 2023. Therefore, the public is concerned that rice is also becoming increasingly scarce, as of February 13, the price was IDR 15,800 per kg, and in Central America it was IDR 13,890 per kg, higher than what the previous price was doing. The main reasons why rice is scarce and expensive are:

1. Fluctuations in world food prices 

Rice prices are affected by fluctuations in world food prices. This is one of the main factors for the increase in domestic rice prices.  SOE Minister Eric Tohir, while reviewing the availability of rice at Ramayana, Kulendah Province, East Jakarta, said, ``Not only global food prices are a factor, food price fluctuations also depend on planting and harvesting times. That will be decided." 

 2. Reduced production and supplies 

Indonesia's rice production will decline from 2023 onwards due to the impact of extreme drought caused by the El Niño climate, according to Blog Bayu's chief executive. 

This leads to an imbalance between supply and demand, which is the main trigger for the increase in rice prices. 
"BPS said that production actually decreased and the balance of supply and demand was disrupted. That's what caused the price of rice to fall. That's domestic production," said Bayu.