TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto is ready to issue a Government Regulation (PP) on the government purchase price (HPP) for harvested dry grain at Rp6,500 per kilogram. This policy is a response to the plummeting price of farmers' grain because it was bought cheaply by rice milling entrepreneurs.

Prabowo stated this readiness during a surprise inspection of the Ministry of Agriculture (Kementan) Office, Jakarta, Monday, February 3, 2025. There, the Head of State held a teleconference with farmers, agricultural extension workers, heads of provincial offices, and the Rice and Rice Milling Entrepreneurs Association (Perpadi).

"The Government of the Republic of Indonesia has set the price of grain, the price of dry harvested grain purchased from farmers is Rp6,500. I am ready to issue the PP," said Prabowo, quoted from an official broadcast.

Prabowo said that entrepreneurs must indeed take advantage, but they cannot do as they please. All parties in the agricultural sector must win, both producers, farmers, entrepreneurs, and consumers. According to him, this is a national issue.

"I repeat, the price of dry harvested grain must be Rp6,500 per kilogram. Ministers, my assistants, staff, experts, immediately formulate the steps that must be taken," he said.

The former Commander General of the Special Forces Corps (Kopassus) admitted to learning from several countries about the absorption of grain. But he did not mention which countries he meant. In those countries, farmer welfare can be realized. In Indonesia, he said he did not want to adopt a capitalist system.

The government has set the purchase price of grain at Rp6,500 per kilogram. The government has also revoked the provision on the rafaction on grain produced by farmers absorbed by Perum Bulog. With this new policy, the state-owned company is required to absorb dry harvested grain from farmers under any conditions.

But this price does not only apply to Perum Bulog. The provision also applies to private companies that buy grain from farmers. "The private sector must also buy at a price of Rp6,500 per kilogram," said Coordinating Minister for Food Zulkifli Hasan in a press conference at the Coordinating Ministry for Food Office, Jakarta, Friday, January 31, 2025.

Zulhas gave an example, there are large factories in South Sumatra that buy rice from farmers below the price set by the government. A number of factories are still buying rice at a price of Rp4,600 per kilogram.

With this new regulation, Zulhas said, the government will take further steps by involving law enforcement officers for those who violate it. "Therefore, we cannot negotiate the price," said the politician from the National Mandate Party (PAN).

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