Arief Prasetyo Adi, Head of Indonesia's National Food Authority, has directed ID Food, a state-owned food holding company, to import garlic from China to bolster government horticultural reserves. "We have requested ID Food to prepare. If I'm not mistaken, the last request we made was for around 15,000 or 25,000 tons to ensure the availability of stockpiles," Arief stated in Jakarta on April 29, 2025.
This move aims to stabilize garlic prices, which have risen to approximately $2.99 per kilogram, surpassing the benchmark of $2.32 per kilogram. The Presidential Regulation Number 125 of 2022 mandates the procurement of food reserves, including garlic, rice, meat, sugar, and corn.
Arief noted the role of state-owned enterprises as stabilizers. An investigation by Tempo in March indicated that some importers delayed imports to avoid market operations intended for price stabilization. Importers with Recommendations for Horticultural Product Imports (RIPH) and Import Approval Letters (SPI) delayed actions due to a procurement price from China of $1,445 per ton, equating to about $1.45 per kilogram. This price had previously dropped to $1,140 per ton.
Transportation costs raised expenses to $1.54 per kilogram, resulting in an importer selling price of $2.04 per kilogram, above the government's market operation price of $1.95 per kilogram. Some importers allegedly withheld stock to inflate prices during Eid al-Fitr, citing high garlic prices in China due to limited production. They expect prices to decrease with increased production in May and June, potentially offering profit opportunities.
Long-time importers reported that established importers without quotas purchased them from those holding RIPH and SPI, incurring an additional fee of $0.43 to $0.49 per kilogram, leading to higher market prices.
Source: Tempo