Jakarta, Klinik Farma – Chairman of the Association of Indonesian Rice Mills and Rice Growers (Perppadi) Sutarto Alimoeso said that many traditional rice mills in Indonesia died a few years ago. This is due to competition between rice mills, which have exceeded the ideal capacity.
“If this rice mill really had problems, many rice mills died, in fact it was a long time ago. Why? Since rice processing in Indonesia is already too excessive, there is competition between the two,” Sutarto told Klinik Farma on Friday. (18.08.2023).
Due to the excessive number of mills combined with the decline in rice production, many traditional rice mills cannot compete with large mills.
“Competition is won, of course, by those who have large capital, that’s actually all. Now several of these are happening, plus if there is a disruption in production. will die (grinding rice),” he said.
However, Sutarto could not specify how many rice mills died in each region, because each region was different, depending on what the competition was between large and small.
‘So how big is not the same, each region is not the same, depending on how the competition between big and small.’ If new investments, large rice factories grow, this will definitely affect the smaller ones,” he explained. .
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Photo: Klinik Farma/Muhammad Sabki
Rice farm workers harvesting rice in the South Primeter rice field, Tangerang, Banten, Thursday (01/03/2018). The Central Statistical Agency (BPS) recorded that the average price of harvested dry grain (GKP) at the farm level was IDR 5,207.00 per kg, or decreased by 3.84 percent, and at the milling level, it was IDR 5,305.00 per kg in February 2018. (Klinik Farma / Muhammad Sabki)
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“If you ask, how much? Each region is different, for example, if we are talking in Central Java, between Boyolali, Klaten, Sragen, the cases in this area are different,” he added.
Sutarto cites data from the Central Statistical Agency (CSO) that the number of rice factories operating from 2012 to 2020 shows a very clear difference. If in 2012 there were more than 180 thousand operating plants, then in 2020 there will be only 169 thousand operating rice plants.
“This alone shows that someone had to die, although not only the little ones died, including the big ones,” he said.
Earlier, Perum Bulog President and CEO Budi Vaseso said that rice production is declining, which led to the closure of several rice mills due to lack of grain stocks.
“Yes, this (closed milling) is handled by the Ministry of Agriculture, because with today’s technology, the large rice industry will absorb the farmers’ products, on the other hand, it is beneficial for the farmers,” said Perum CEO Bulog Budi. Meeting with Vaseso at the MPR/DPR building, Jakarta, Wednesday (August 16, 2023).
In addition to the difficulties in obtaining grain, millers also have to buy grain at a rather high selling price. According to a person known as Buwas, currently the average price of harvested dry brown rice (GKP) is between Rs 6,200 to Rs 6,700 per kg or more of HPP.
“Because the price is high. If traditional grinding is limited due to less sophisticated equipment, then the production results will definitely not be of premium quality. But this does not mean that we are ignoring the traditional one due to limited production so that small factories cannot supply it,” Bouvas said.
[Gambas:Video CNBC]
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