EVALUATION RISE GOVERNMENT PURCHASE PRICE (HPP) IN EFFECTIVENESS OF RISE PROCUREMENT

Abstract

Rice Government Purchase Price or Harga Pembelian Pemerintah (HPP) is the price that used by Bulog for rice procurement to build national stock especially rice. Bulog is one of the government institution that requesting to protect national food security. The characters of paddy which seasonable harvest and different plant distribution productive area of paddy are homeworks because of Bulog has to purchase rice as much as possible. The price level seems like generated by a simple assumption that is how much production costs are incurred and little added margin profit for farmers. However, rice price determined has to compete in the marketplace. In otherside, purchase price set by the government for Bulog, should be able to provide margin profit for farmers' crops. Often government's purchase price that is determined no more enough competitive among other private business in general marketplace. Moreover if unexpected things happened such as harvest failure. However it has to be solved as soon as possible so that national stock building must go on. Because of it, for the past few years through The Ministry of Trade decide to using flexible price up to 20% basic price determined. However, this strategy seems to be less responsive because of it doesn't reach the optimal goals. In this journal the author tries to provide an explanation of its phenomenon that makes a reason showed that we need a responsive model that can be used to solve it. Expose phenomenon descriptively food security based on amount of rice procurement from Bulog. We will know that need adaptive model based on rice volume of entered responses under determined optimum price rate to reach procurement effectively. So if its something unpredictable moment happened, we can going through procurement process to satisfying rice procurement. Maybe it is pragmatism, but for the short time it can be one of good ways to chase food security work-chain. Thus, without ignoring losses risk, whether producers, consumers, and government can run in mutual benefits.

Keywords: 1 Food security · 2 HPP · 3 Paddy productivity