The problem of rice distribution is a crucial and significant problem in Indonesia due to several factors. Among them are substantive factors related to information and data collection systems that still need to be integrated, vertical and horizontal rice price disparities, lengthy and inefficient rice distribution channels, uncompetitive market structures, and inelastic rice demand elasticity. On the strategic factor, the complexity of the problems in the distribution of rice is related to government policies that impact the stability of rice reserves and prices.
“There are several government policies that have not resolved substantive problems. Often policies set by one Ministry only address short-term and partial problems. For example, import policies and rice price controls are not on target, the highest retail price (HET) policy is set below the market equilibrium price resulting in reduced income for farmers, as well as provisions regarding purchase prices government (HPP) which only in the short term protects farmers,” said Promovendus Anika Widiana.
Anika Widiana mentioned this idea in a doctoral promotion session in Administrative Sciences on Thursday, 29 December 2022, at the Auditorium of the M FIA UI Building with a dissertation entitled Analysis of Governance Networks on Rice Distribution in Indonesia.
In the hearing, Anika stated that the problem of rice distribution was getting more complex due to institutional factors. There are several problem points seen from this institutional factor, namely overlapping main tasks and functions between institutions/institutions; and the need for capacity building and institutional strengthening, particularly about a new institution, namely the National Food Agency, which was established based on Presidential Regulation Number 66 of 2021.
Furthermore, promovendus states that political conflict is a factor causing a slowdown in the systemic process of rice distribution in Indonesia through a slowdown in joint analysis and shared perception. Anika said that if the political conflict gets more robust, it will be challenging to unravel the complexity of the problems in rice distribution.
“This research is motivated by the complexity of the problems in the rice commodity in Indonesia. Such as a) producers and distribution centres are concentrated, while consumers are scattered throughout Indonesia, b) limited means of transportation and other means that result in inefficient rice logistics costs, c) climate and weather factors which have a major influence on food productivity. The climate has been an important determining factor for Indonesian agriculture until recently. Increasingly unstable climatic conditions can accelerate harvest times and unpredictable famines. Therefore, rice supply and distribution systems are important factors in the adequacy of national food consumption, and d) the number of stakeholders involved in the rice distribution process,” said Promovendus.
Promovendus analyzes problems in national rice distribution using the concept of Governance Networks (Klijn & Koppenjan, 2016) to get an overview of Indonesia’s good and robust rice distribution system at the end of the summary presentation session. Anika explains the recommendations she gave as a result of her research.
“To the Government, the business sector/business actors, and academics, there are three points of advice addressed to the Government, namely to review the role of Bulog based on Presidential Decree No. 48/2016 concerning assignments to Bulog in the context of national food security, particularly related to the dualism of Bulog’s role; review the Regulation of the Minister of Trade (Permendag) No. 01/2018 concerning rice export and import provisions which state that Bulog can only carry out rice imports with the approval of the Minister of Trade; and as a first step, the National Food Agency can conduct an inventory of policies and regulations from various ministries and agencies to conduct mapping and review of overlapping and counter-productive regulations,” said Anika.
Furthermore, for the business sector/business actors, Promovendus focuses more on expanding partnerships which should be carried out between companies or wholesalers with farmers and MSMEs. Then, promovendus expects an active role from the academic community to assist research and development activities in the agriculture and food sector and follow up and oversee government policies related to food, especially the rice distribution system.
In this doctoral promotion, Dr. Anika Widiana, S.E., M.Sc succeeded in becoming the 23rd graduate of the FIA UI Doctoral Program and the 211th graduate of the Doctoral Program in Administrative Sciences with the chairman of the assembly, Prof. Eko Prasojo. She attended by Prof. Chandra Wijaya as the promoter and Dr. Andreo Wahyudi Atmoko as co-promoter. The examiner team in this trial were Prof. Azhar Kasim, Prof. Martani Huseini, Prof. Muchlis Hamdi, Prof. Bustanul Arifin, and Prof. Didik J. Rachbini.
