MUHAMMADIYAH.OR.ID, JAKARTA – Long queues of hopeful buyers snaked through markets across Indonesia, seeking a chance to purchase medium-quality rice at a subsidized price.
The government’s Stabilization Food Supply and Price (SPHP) program offers rice at Rp 10,600 per kilogram, or Rp 53,000 for a 5-kilogram bag, with a limit of 2 bags per person. This translates to a total cost of Rp 106,000, compared to the regular market price of around Rp 75,000 for the same amount. While the saving of Rp 22,000 per 5 kilograms (or Rp 44,000 for 10 kilograms) may seem small, these queues reveal a harsh reality – the significant financial struggles of many Indonesians.
Anwar Abbas, Muhammadiyah Chairman for Small and Medium Enterprises (SMEs), Community Empowerment, and Environment, expressed his concerns. He emphasized the stark contrast between the perceived savings and the underlying economic hardship.
“For people on low incomes, Rp 22,000 or Rp 44,000 can make a real difference,” he stated on Tuesday (February 27). “They are willing to endure the heat and wait for hours in line, some even fainting, just to save this amount.”
Abbas further highlighted the seemingly inconsistent pricing structure. While rice prices for consumers are rising, the price of paddy paid to farmers hasn’t seen a proportionate increase. He argues that a rise in the price of rice, as a finished product, should be accompanied by a corresponding increase in the price of paddy, the raw material provided by farmers.
However, the issue extends beyond price adjustments. Abbas acknowledges that even if the price of rice increased, it wouldn’t be a significant problem if it were accompanied by a broader economic improvement. He laments the lack of such progress, emphasizing that the rising cost of this essential food is placing a heavy burden on households.
The decreasing number of farmers in Indonesia is another concerning aspect. Young people are increasingly hesitant to enter a profession characterized by low income and high risks. Abbas believes that increasing the price of paddy could act as an incentive, attracting younger generations back to farming.
“Logically, a rise in rice prices shouldn’t be a major issue if it translates into higher incomes for farmers,” Abbas explained. “This could potentially attract young people who are currently uninterested in farming, ultimately leading to a boost in national rice production.”
He paints a grim picture of the current situation for Indonesian farmers, describing their lives as “fraught with hardship.” They face significant financial burdens due to high production costs, yet are forced to sell their crops at low prices. Abbas urges the government to take action, implementing policies that actively support and empower local farmers.
“The profit margins for farmers are incredibly low, while the risk of losses due to crop failure, pests, weather, and other challenges like acquiring quality seeds and subsidized fertilizers is incredibly high,” he stated.
In conclusion, Abbas points to the root cause of this recurring problem: the government’s inability to effectively address the issue of income inequality, particularly for the lower income bracket. He reminds the government of its constitutional obligations, specifically Article 33 of the 1945 Constitution, which mandates the state and government to create prosperity for all citizens, including the poor and needy, as explicitly mentioned in Article 34. By upholding these constitutional principles and implementing effective economic policies, Indonesia can strive towards a more equitable and sustainable future, where both farmers and consumers can thrive.
