Garlic Imports Impacted by US Policy, Rice HET to be Changed

JAKARTA, KOMPAS – Almost a month after Eid, the price of garlic remains high. This is due to low garlic imports affected by the tariff policies of the United States and the Indonesian Government's plan for import deregulation.

On the other hand, the National Food Agency plans to change the price of milled dry unhusked rice (GKG), as well as the highest retail prices (HET) for medium and premium rice. The discourse on price adjustments is related to the high prices of farmers' dry unhusked rice (GKP) after the government implemented a policy to purchase GKP of various qualities at a minimum of Rp 6,500 per kilogram (kg).

This was raised during the Regional Inflation Control Meeting held by the Ministry of Home Affairs in a hybrid format in Jakarta, Monday (28/4/2025). The meeting, attended by representatives from ministries/agencies and local governments in the food sector, was led by the Secretary General of the Ministry of Home Affairs, Police Commissioner General Tomsi Tohir Balaw.

The Central Statistics Agency (BPS) recorded that as of the fourth week of April 2025, the national average price of garlic was Rp 45,671 per kilogram (kg). This price increased by 1.39 percent compared to the national average price in March 2025 and remains significantly above the reference selling price (HAP) at the consumer level of Rp 38,000 per kg.

The increase in commodity prices that heavily relies on imports has occurred in 53.61 percent of regions in Indonesia. The areas with the highest garlic prices are Intan Jaya and Puncak Regencies, each reaching Rp 100,000 per kg.

Garlic importers are also closely monitoring the impact of the U.S. tariff policy and the planned deregulation of imports that will be carried out by the Indonesian Government at the request of the U.S. Government.

The Director of Domestic Market Development at the Directorate General of Domestic Trade of the Ministry of Trade, Nawandaru Dwi Putra, stated that the price of garlic in the country remains high due to low import realization. As of April 25, 2025, the Ministry of Trade has issued import approvals (PI) for 315,889 tons of garlic, which accounts for 51.5 percent of the total garlic import quota for 2025, amounting to 589,720 tons.

"However, the realization of garlic imports until the end of last week was only 86,155 tons or 27.27 percent of the total PI that has been issued," he said.

Nawandaru also mentioned that the Ministry of Trade has coordinated online with garlic importers regarding the low realization of imports. In that coordination meeting, the importers stated that they are still waiting and monitoring global garlic prices, especially in China.

Until now, the fluctuations in global garlic prices and the exchange rate of the rupiah against the US dollar remain very high. Garlic importers are also closely monitoring the impacts of US tariff policies and the planned deregulation of imports that will be implemented by the Indonesian Government at the request of the US Government.

"We will again directly summon the garlic importers holding the PI. We, through the Directorate General of Trade Supervision and Consumer Protection, will also strengthen the supervision of garlic distribution, especially the stock of garlic in the warehouses of importers and their networks," he said.

During the meeting, it was also revealed that the price of medium rice at the national level remains significantly high following the rice harvest in March-April 2024. This is due to the relatively high price of unhusked rice at the farmer level. The National Food Agency (Bapanas) also plans to adjust the price of GKG, as well as the HET for medium and premium rice.

According to the Food Price Panel of Bapanas, the national average price of medium rice during the period from March 27 to April 27, 2025, reached Rp 13,718 per kg. The disparity between the average price of medium rice and the HET is 9.74 percent.

The Deputy I of Food Availability and Stabilization at Bapanas, I Gusti Ketut Astawa, stated that the government plans to adjust the GKG, as well as the HET for medium and premium rice. The discourse on price changes refers to the high prices of dry harvested grain (GKP) at the farmer level.

Currently, the national average price of GKP at the farmer level, with various qualities, is Rp 6,500 per kg. This indicates that the government has succeeded in protecting and maintaining the price of farmers' rice.

However, Ketut continued, the establishment of the GKP price needs to be accompanied by an adjustment in the GKG price. This is considering that the GKP price is being purchased at Rp 6,700 per kg, Rp 6,800 per kg, and even Rp 7,000 per kg.

In the future, the increase in the price of GKG will also be followed by an increase in the HET of medium and premium rice. Therefore, we will discuss this in a limited coordination meeting at the level of the Coordinating Ministry for Food Affairs.

"With the new GKG, Perum Bulog will be assisted in absorbing GKG at the milling level. In addition, if there are changes to the HET for medium rice, Bulog can also adjust the prices for the SPHP (Food Supply and Price Stabilization) program," he said.

In the presentation material from Bapanas, it was mentioned that rice milling entrepreneurs proposed an adjustment to the GKG price following the implementation of the purchase of various quality unhusked rice from farmers at Rp 6,500 per kg. This proposal was also conveyed by rice milling entrepreneurs who are partners of Bulog.

Referring to the Decree of the Head of Bapanas Number 2 of 2025, the price of GKG at the milling level and in Bulog warehouses currently stands at Rp 8,000 and Rp 8,200 per kg, respectively. Meanwhile, the price of rice in Bulog warehouses is Rp 12,000 per kg.

Meanwhile, the HET for rice currently still refers to the Bapanas Regulation Number 5 of 2024. The HET for medium rice in zones I, II, and III is set at Rp 12,500 per kg, Rp 13,100 per kg, and Rp 13,500 per kg, respectively. As for the HET for premium rice in zones I, II, and III, it is priced at Rp 14,900 per kg, Rp 15,400 per kg, and Rp 15,800 per kg, respectively.

As of April 25, 2025, the Bulog rice stock reached 3.15 million tons. This stock consists of 3.12 million tons of government rice reserves and 38,180 tons of commercial rice.