Coordinating Minister for Food Security, Zulkifli Hasan, addressed rising garlic prices linked to delayed import realizations. The Ministry of Trade (Kemendag) approved 300,000 tons of horticultural imports, though the target was 500,000 tons annually. "The approval for 300,000 tons has been granted, which is a considerable amount. It should have been 500,000 tons per year," Zulhas stated after a meeting at the Coordinating Ministry for Food Security in Jakarta, February 26, 2025.
Although the import permit was issued within two months, Zulhas did not confirm its realization. According to Tempo, 26 out of 87 businesses received permits, primarily new companies. Established importers lack quotas and cannot apply for import recommendations (RIPH) from the Ministry of Agriculture (Kementan), despite compliance with Kementan's requirements.
Minister of Trade Budi Santoso, when questioned about new companies receiving permits, stated, "I don't remember, but the import permits have been issued," as reported by Tempo.
Data from Jakarta Food Info indicates horticultural prices at $3.08/kg, exceeding the highest retail price (HET) of $2.50/kg. Kemendag reported 226,101 tons of garlic import approval, with only 21,000 tons expected in March. The delay in garlic imports is linked to increased prices; National Food Prices Panel (Bapanas) data shows consumer-level prices at $2.79/kg, surpassing the HET of $2.50/kg. In Eastern Indonesia, prices reached $3.50/kg, above the HET of $2.64/kg.
Tommy Andana from Kemendag coordinated with the directorates to expedite import realization. "Kemendag has urged the import permit holders to expedite the realization, and this has already been realized for sugar, and there has also been a realization for garlic," he reported during an online Coordination Meeting for Inflation Control.
Tommy noted that 21,000 tons of garlic will arrive in March, with 14,600 tons following in April 2025. He emphasized collaboration with local governments to address regional shortages and high prices. Monitoring at Jakarta's Kramat Jati Wholesale Market showed a 40% demand decrease compared to two years ago, indicating reduced purchasing power.
Importers delay realization due to a policy requiring 20% of distribution for fasting month operations. Garlic prices at the importer level range from $1.93 to $2.14/kg for honan type and $2.23 to $2.33/kg for kating type.
Secretary General of the Ministry of Home Affairs, Tomsi Tohir, noted that imported garlic enters Indonesia, but unloading and distribution can exceed a month, affecting prices during Ramadan and Eid al-Fitr. "Almost every year I have sat here, it is the same, but the prices drop after Eid," he remarked.
Source: Tempo