Indonesia is currently experiencing a significant increase in garlic prices, attributed to delays in importation processes. The Ministry of Trade had approved the importation of 300,000 tons of horticultural products, including garlic, for the year, despite an annual target of 500,000 tons. Coordinating Minister for Food Security, Zulkifli Hasan, highlighted this shortfall, stating that while 300,000 tons had been approved, the intended target was 500,000 tons per year.
The realization of these import permits remains uncertain. Reports indicate that out of 87 businesses, 26—primarily new entrants—received import permits. Established importers, despite meeting the Ministry of Agriculture’s requirements, have not been allocated quotas and are unable to apply for import recommendations (RIPH). Minister of Trade Budi Santoso acknowledged the issuance of import permits but did not provide specifics regarding the recipients.
Current data reveals that garlic prices in Jakarta have risen to $3.08 per kilogram, surpassing the highest retail price (HET) of $2.50 per kilogram. The Ministry of Trade reported approvals for 226,101 tons of garlic imports; however, only 21,000 tons are expected to arrive in March. This delay has contributed to the price surge, with consumer-level prices reaching $2.79 per kilogram, exceeding the HET. In Eastern Indonesia, prices have escalated to $3.50 per kilogram, above the regional HET of $2.64 per kilogram.
Efforts are underway to expedite the importation process. The Ministry of Trade has urged permit holders to accelerate their import activities, resulting in some progress for commodities like sugar and garlic. Projections indicate that an additional 14,600 tons of garlic will arrive in April 2025. Collaboration with local governments is also being emphasized to address regional shortages and mitigate high prices.
Market observations, such as those at Jakarta’s Kramat Jati Wholesale Market, have noted a 40% decrease in demand compared to two years ago, suggesting a decline in consumer purchasing power. Importers have also faced challenges due to policies requiring 20% of their distribution to be allocated for operations during the fasting month. Currently, importer-level prices for the honan variety of garlic range from $1.93 to $2.14 per kilogram, while the kating variety is priced between $2.23 and $2.33 per kilogram.
The Secretary General of the Ministry of Home Affairs, Tomsi Tohir, highlighted that while imported garlic does enter Indonesia, the unloading and distribution processes can take over a month. This delay impacts prices, particularly during periods like Ramadan and Eid al-Fitr. He noted that this pattern recurs annually, with prices typically declining post-Eid celebrations.
In a related development, the Agriculture Ministry announced plans to reduce garlic imports by approximately 40% in the coming year to encourage domestic production. The National Food Agency (NFA) stated that horticultural product import recommendations (RIPH) for 2024 would limit imported garlic to a maximum of 650,000 tons, aligning with the national demand estimated between 600,000 to 620,000 tons. This initiative aims to promote self-sufficiency and reduce reliance on imports.
The Indonesian government continues to monitor the situation closely, implementing measures to stabilize garlic prices and ensure adequate supply for consumers nationwide.
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