IPB University Professor: Import Policy Inconsistencies Cause Garlic Price Surge
The price of garlic in Indonesia continues to rise, prompting calls for the government under Prabowo’s leadership to improve import governance.
Professor A Faroby Falatehan from the Faculty of Economics and Management (FEM) at IPB University stated that inconsistencies in import policies are the primary factor behind the recurring price spikes in the domestic market.
“The continuous increase in garlic prices is not due to supply shortages from producing countries but rather the result of inconsistent import policies. When import realization is low, domestic stocks become limited, causing prices to soar,” said Prof Faroby.
According to data from the Ministry of Trade, as of May 2024, import realization had only reached 133,690 tons, or 38.27 percent of the total Import Approvals (PI) issued.
Prof Faroby highlighted that Indonesia’s domestic garlic production remains low and insufficient to meet national demand. The current monthly garlic demand is 54,478 tons, or 653,739 tons annually, whereas domestic production this year is only around 22,343 tons.
“To bridge this gap, Indonesia needs to import garlic. As of September 2024, the three main countries supplying garlic to Indonesia were China (344,38 thousand tons), India (1,10 thousand tons), and Germany (0,86 thousand tons),” he stated in an interview with IPB University’s Public Relations team.
Market analyst Heber Chavez noted that Indonesia led global garlic imports, accounting for 25,9 percent of total import volume in the first half of 2024.
The inconsistency in import policies is further exacerbated by administrative barriers in issuing Import Approval Letters (SPI) and Horticultural Product Import Recommendations (RIPH) by the Ministry of Agriculture. The Ombudsman reported that the number of RIPH approvals issued was twice the approved import quota, creating challenges for importers in obtaining SPI.
As a result, Prof Faroby explained, domestic garlic prices have continued to soar.
As of February 14, 2025, data from the Strategic Food Price Information Center indicated that the price of garlic had reached Rp 44.850 per kilogram.
This surge persists despite a decline in China’s garlic export prices, which, after logistics costs, amounted to only Rp 23.340 per kilogram. Even the government’s market intervention, setting garlic prices at Rp 29.000 per kilogram, has failed to curb the price hike significantly.
Prof Faroby also proposed that State-Owned Enterprises (BUMN) should play a more active role in the import process to enhance coordination and oversight.
Additionally, he recommended that the Food Security Agency strengthen its monitoring of importer warehouses to prevent hoarding, particularly in the lead-up to Ramadan and Eid al-Fitr.
He also criticized the mandatory five percent domestic planting requirement for importers, as stipulated in Minister of Agriculture Regulation (Permentan) No. 16/2017 and No. 24/2018 on Horticultural Product Import Recommendations.
“This policy should be reassessed to ensure it genuinely supports farmers and boosts domestic production rather than merely imposing an administrative burden on importers,” said Prof Faroby.
He further emphasized that data synchronization between ministries and regional governments remains a crucial issue in garlic import planning.
“Garlic is included in the Commodity Balance framework, which analyzes supply and demand. However, multiple versions of data exist between ministries and regional governments. We need data synchronization to ensure more accurate, transparent, and stable policies,” he concluded. (dr) (IAAS/RUM)
