Indonesia caps rice prices in bid to keep food costs stable.

Indonesia’s trade ministry has capped retail prices for most types of rice, looking to maintain stability in the cost of the commodity which lies at the heart of cuisine in the South-east Asian nation. Although prices for the grain have been relatively steady this year, the step comes as authorities intensify measures to ensure food prices remain in check as they are politically-sensitive due to their impact on the poor. Rice prices also carry a heavy weighting in calculating the country’s consumer price index. The decree, issued last week with immediate effect, puts ceiling prices at between 9,450 rupiah to 10,250 rupiah (US$0.71-US$0.77, RM3.02-RM3.28) per kilogramme (kg) for 25-per-cent broken rice, or what authorities call medium rice, depending on where the grain is sold in the archipelago. Those ceiling prices were below national average of medium rice prices in 2017, which have so far fluctuated between 10,540 rupiah to 10,756 rupiah a kg. The government also set the maximum prices for 15-per-cent broken rice, or premium rice at 12,800 rupiah to 13,600 rupiah per kg.