Market Intervention Policy in The Case of Rising Rice Prices in Indonesia From The Perspective of Ibn Taimiyah

. Rice is an important commodity and is needed by the wider community, its existence is vital as a means to fulfil the needs of life, therefore the Indonesian government's intervention in this commodity is very high. The price of rice in Indonesia continues to rise for many factors. This research employs qualitative methods which is called library research. The result of this study is the increase in rice prices in Indonesia according to Ibn Taymiyyah is entirely caused by market forces. According to Ibn Taymiyyah what is needed therefore is market intervention, instead of price intervention. The market intervention carried out by the Indonesian government is by intensifying the social assistance program, running market operations with the SPHP program, and strengthening the stock of government rice reserves (CBP). Meanwhile, the policy of setting the price ceiling should not be carried out by the government because the market conditions related to this rice commodity run perfectly and there is no market distortion.


INTRODUCTION
The market, as an indispensable element of economic activity, serves as a natural mechanism for the exchange of goods and services that dates back to prehistoric times.In his youth, Rasulullah SAW carried out economic development in Medina with the construction of an Islamic market for the ummah.Rasulullah SAW was fully aware that economic power is a pillar of community life.One form of economic importance at that time was the existence of the market as the heart of the economy.The market built by the Prophet gradually grew rapidly.In the market, the Prophet tried to condition the market to run according to the principles and basis of Islamic morality.For the sake of the realization of a conducive market, and the mechanism runs well and ensures the security of doing business in the market, the Prophet Muhammad SAW always controls and provides direction to sellers and consumers.Sometimes he acted as a law enforcer (Qardhawi, 2016).Often in his inspections, he found dishonest business practices so he reprimanded him.Rasulullah SAW also gave many opinions, orders and prohibitions for the creation of an Islamic market (Hakim, 2015).
The supervision of the Prophet Muhammad in the market is now called al-Hisbah.
The existence of the market cannot be separated from its role as a place for buying and selling transactions (Karim, 2020).As long as there is no disturbance that can disrupt the market balance.In this concept, the reciprocal relationship between the forces of demand and supply is recognized, forming a market community.If demand and supply take place naturally and normally, the market can operate in a stable and conducive manner.However, the risk of economic damage arises if the market experiences abnormalities and manipulation (Karim, 2020).
For Indonesians, rice is not only considered a staple food, but also a social commodity that plays a significant role in maintaining political stability and supporting economic growth.
Rice plays an important role in the economic sector, including in labor absorption, economic growth in rural areas, and general economic dynamics.In addition, the role of rice also includes impacts in environmental aspects, such as maintaining water use and maintaining air quality.Socio-politically, rice serves as the glue of the nation, influencing order and contributing to security.Therefore, any changes in the rice sector can easily affect other aspects of socio-economic life (Tjitrosemito, 1993).
Rice pricing has special features that require discretion in the process, as rice is a major necessity for the people of Indonesia.The price must be carefully considered, and this uniqueness is due to the role of rice as a staple food in society.In pricing, it is necessary to ensure that the price reflects a fair benefit to the buyer and provides a reasonable profit to the seller.The Islamic perspective on markets indicates that markets have both advantages and disadvantages.In other words, the market mechanism is not considered a perfect or standardized system, so it does not require any intervention or engineering (Anwar, 2013).In the Islamic perspective, the market is considered a legitimate and good place of commerce, so that as a whole it is considered a very ideal mechanism of commerce.
Increasing rice consumption in Indonesia, in line with a large population growth, has created significant challenges in managing rice supply and demand.Recent data from the Ministry of Trade's Basic Needs and Market Monitoring System (SP2KP) shows an upward trend in premium and medium rice prices throughout 2023.The increase in premium rice prices, which reached IDR 14,696.41 per kilogram in September, reflects persistent pressure on supply and demand.The 4.23% increase from the previous month indicates instability in the availability of premium rice.Similarly, medium rice experienced a significant price spike, reaching IDR 12,941.87 per kilogram with a 6.07% increase in one month.In addition, during 2023, the price increase of premium rice by 13.29% and medium rice by 16.79% indicates significant inflationary pressure in the rice sector (Setiawati, 2023).This could affect the purchasing power of the community, especially the middle to lower economic groups, who are usually hit harder by increases in the price of basic necessities (RI, 2023).
The case of soaring rice prices was caused by a number of factors, including high demand for rice that was not matched by an adequate increase in rice production in the country.Coupled with the dry season, there was no bumper harvest.In addition, extreme dry conditions or el nino are predicted to reach their peak in August to September 2023.This also causes public concern resulting in panic buying which can lead to increased demand for rice.The increase in rice prices in Indonesia is also influenced by global factors, which are mainly reflected in the restrictive policies of rice exporting countries.For example, India, the world's largest rice supplier, banned the export of non-basmati rice last July.This decision directly impacted the rice price situation in Indonesia, causing a significant increase.
As an essential and much-needed commodity for the community at large, rice plays an important role as the main means to fulfill life's needs.Therefore, it is imperative for the government to focus more attention on the management of rice stocks in Bulog, with the aim of anticipating potential rice shortages.The Indonesian government's involvement in regulating this commodity reaches a significant level, which is reflected through the implementation of various food aid programs and the organization of cheap markets involving cooperation with various parties.In addition, the government involves the Logistics Agency (Bulog) to obtain rice supplies from farmers through partners or through import activities.The government through the Ministry of Trade, Bapanas and Bulog also often conducts market operations as an effort to stabilize rice prices.HPP and Het rice prices are also set by the government.
The Islamic economic market system is a free market system governed by the laws of supply and demand accompanied by a system of perfect competition that does not lead to harm and injustice.Among the scholars of Islamic jurisprudence, the market mechanism has been discussed although still in a simple pattern.In certain cases, the Hanafiyah and Malikiyah Ulama allow market intervention.This is done to avoid undesirable things, and to create justice.If the owner of the merchandise sets a high price, then under these conditions, the government has the right to determine the price with the aim of benefiting the community (F & Riyadi, 2014).The form of intervention may include supervision, regulation, or implementation of economic activities that cannot be carried out effectively by the community.In some situations, Ibn Taymiyyah acknowledged the existence of price intervention by the government as an effort to stabilize prices, so that the role of the market can function as a means of meeting the basic needs of the community in accordance with the principles of Islamic teachings (Santi, 2009).
Based on the context that has been described, the author is interested in exploring further related to market intervention policies, especially in the case of rising rice prices in Indonesia, using Ibn Taimiyyah's perspective.To address the issue of rising rice prices in Indonesia, it is important to do more research and explore Ibn Taimiyah's views on market intervention in depth.This is expected to provide a more comprehensive insight into the relevance of Islamic teachings to economic policy and government intervention in maintaining the balance of rice prices in Indonesia.

Market in Islam
The market in Arabic is called the word sūq which means driving, carrying, transporting, and delivering.The market is called souq according to Ibn Manzhur because the trade or goods being traded are brought and lifted to that place.So that Ibn Manzhur concludes that sūq is a place of buying and selling (Ibn Mandzur, n.d.).Imam Al Ghazali assumed that the market is an element of natural order, the market has a very high and important role in the economy and in front of God the market has a special position because the market as a means of life that can be utilized by the community to sustain life.Imam Al Ghazali argues that economic activity in the market is a gift from Allah SWT given to his people and humans must be grateful and enjoy the blessings of God given.Imam al-Ghazali also viewed positively the activities in the market.However, according to him, activities in the market should be carried out at an unemotional level, but with realistic calculations, such as aimed at not begging, being able to provide for the family, and for charity (Al-Ghazali, 2003).
The market is an important part of Muslim life because in the market there is interaction and it is worship for Muslims in economic life.This has been done by the Prophet Muhammad SAW.During the hijrah to Medina, the apostle often went to the market to fulfill the needs of life (Hidayat, 2010).In Islam, the market is considered as a legitimate location of commerce, and generally is an ideal trading mechanism.The description of the Islamic market system is a market in which competition is carried out in a healthy manner and wrapped in moral values.The character of the Islamic market has three separate concepts that distinguish it from the conventional market concept, the realization of the Islamic concept has three fundamental characteristics, namely the principle of justice, avoiding prohibited activities and paying attention to aspects of benefit.These three principles are oriented towards the creation of a balanced economic system, namely the balance between maximizing profits and fulfilling sharia principles which are fundamental in market activities (Ali, 2008).
Generally, markets can be classified into two categories, namely Perfect Competitive Market and Imperfect Competition Market.According to Mankiw, in a perfect competitive market, there are many sellers and buyers offering similar products, so each seller and buyer can only accept the price that has been set, referred to as a price taker.In other words, the pricing of goods must be in line with the market price due to the high level of competition among market participants.In this context, intense competition ensures that no single party can significantly influence prices, so that the market mechanism runs efficiently and fairly.(Santi Merlinda et al., 2022).

Market mechanism and intervention from Ibn Taimiyah's perspective
Conventional market mechanisms are formed through complex interactions between supply and demand, where the price of a good or service is determined by market forces.In the Islamic context, this economic system requires market participants to follow the guidelines of Islamic ethics and law.They are not only required to ensure the fulfillment of needs in accordance with Islamic teachings, but are also obliged to pay attention to the benefits that involve many people.In the Islamic perspective, supply and demand activities are governed not only by the desire to achieve personal gain, but also by social responsibility.Market participants are expected to consider the impact of each transaction on society and ensure that justice and public benefit are maintained.
Furthermore, Islam emphasizes that in conducting economic activities, both supply and demand must be voluntary and must not involve elements of coercion.Economic transactions must be carried out in good faith and must not harm the parties involved.This reflects the values of fairness, transparency, and morality that are emphasized in Islamic economics.(Santi Merlinda et al., 2022).
The concept of market mechanism was already taught in Islam before it was introduced by Adam Smith.At the time of the Prophet Muhammad SAW, he rejected price intervention.(Wahyuni, 2019).This is due to policies that must prioritize the benefits of all parties.In the context of Islamic economics, adherence to ethics and shari'ah values is a key element in carrying out economic activities.This ethics involves commands, prohibitions, recommendations, and appeals to seek Allah's pleasure and achieve the benefit of society.In the Islamic perspective, the pricing mechanism is based on the natural interaction between demand and supply.In other words, price fixing occurs through market mechanisms that follow natural rules, without any unilateral intervention, either from the government or certain groups.This principle emphasizes the importance of healthy and fair market freedom in achieving economic balance.
Market intervention is a measure taken by the government to address imbalances that arise in market activities.Market intervention, or the act of intervening in the market mechanism, occurs when the government is inefficient and has not optimized the use of available resources.In this context, government intervention may include various measures, such as price regulation, subsidies, or other policies that aim to improve market conditions that are deemed not functioning optimally.However, the effectiveness of market intervention measures may vary depending on their implementation and the government's ability to respond to market dynamics.(A. A. Karim, 2010).In the Islamic economic concept, the method of price control is determined based on an analysis of the cause.If the cause is a pure change in demand and supply, control is done through market intervention.However, if the cause is a distortion of the pure supply and demand mechanism, control measures are taken by eliminating these distortions, including through the determination of price intervention to restore prices to their original condition.The concept put forward by Ibn Taimiyah in 1976 states that price intervention can be carried out by the government under certain conditions.This reflects the recognition that there are situations where markets experience imbalances or disturbances that require government intervention.
Ibn Taimiyah emphasized the need for proportionate action to overcome these conditions, including price adjustments through interventions aimed at returning prices to their original condition (Halim, 1976).Thus, this approach reflects the view of Islamic economics that not only considers economic aspects, but also ethics and justice in price regulation.These principles serve as a foundation for the government in determining appropriate measures to maintain market stability and ensure public welfare within an economic framework based on Islamic values.Ibn Taimiyah distinguishes between price increases due to market forces and those due to injustice, such as hoarding.Price fairness depends on a fair, perfect, open market mechanism and the absence of monopolistic practices.However, if there is a difference in market prices caused by injustice in the market as a result of market imperfections, Ibn Taimiyah placed the basis of price regulation on the authority of the government as a supreme authority of the people (Islahi, 1997): The role of prices in the market mechanism has great significance, and Ibn Taimiyah paid particular attention to issues related to pricing.His focus was to emphasize the aspect of justice in setting prices in the market and ensuring the fulfillment of people's basic needs.In his view, Ibn Taimiyah distinguished two types of price fixing: those that are considered unfair and unlawful, and those that are considered fair and lawful.Unfair and unlawful price fixing occurs when there is an increase in prices due to competition in the free market, such as a shortage of supply or an increase in demand (Islahi, 1997).
Ibn Taimiyah underlined the importance of maintaining fairness in pricing, especially to ensure that people's basic needs are met.In this context, he identified the difference between sharia-authorized and unauthorized pricing practices.For example, price increases that are not ethically justifiable or that violate Islamic law may occur when there is a shortage of supply or a surge in demand in the free market (Purwanti, 2020).
Ibn Taimiyah viewed that price increases do not always stem from unfair practices by traders or sellers.Instead, factors such as a decrease in supply due to production inefficiencies, a reduction in imports of demanded goods, or market pressures can be the cause.In Ibn Taimiyah's view, there are two main sources of supply, namely local production and imports of demanded goods.Changes in supply are explained as increases or decreases in the availability of goods, caused by local production and imports.If demand rises while supply remains constant, then prices will increase.Ibn Taimiyah highlighted that price increases caused by a decrease in supply or an increase in demand are part of the impersonal market mechanism and are considered an act of Allah SWT (Rasti, 2019).where prices rise due to the injustice and inequality of the market mechanism, then the government may intervene in setting prices.However, if the rise or fall of prices occurs naturally under normal conditions, the government should not interfere at all.under normal conditions, the government has absolutely no authority to set prices.However, literature that discusses in depth about market intervention from Ibn Taimiyah's perspective is still scarce.This study will discuss market intervention through policies carried out by the government in overcoming the case of rising rice prices in Indonesia, then it will be analyzed through the perspective of Ibn Taimiyah.

METHOD
This research uses a qualitative approach method.A qualitative approach is a research method that produces descriptions that include various forms of data, such as speech, writing, or observable behavior.In this approach, the role of the researcher becomes the main instrument, and the emphasis on research results is more focused on interpreting meaning rather than forming generalizations (Sugiyono, 2011).This research is a type of library research, which involves collecting data from various sources of library information such as books, scientific journals, encyclopedias, magazines, newspapers, and documents (Sukmadinata & Syaodih, 2009).Literature research or literature review is a study that conducts a critical review of the knowledge and ideas contained in academically oriented literature.The purpose of this research is to formulate theoretical contributions to a particular topic.This research is a descriptive analysis, in which the data obtained is described in an organized manner to provide understanding and explanation so that it can be well understood by the reader.from the city's scholars, hafizh, and hadith experts.His intellectual achievements impressed the scholarly luminaries.By the age of a dozen, he had mastered the science of ushuluddin and specialized in tafsir, hadith and Arabic.Ibn Taimiyah examined Imam Ahmad's Musnad several times, then studied Kutub al-Sittah and Mu'jam at-Thabarani al-Kabīr.Ibn Taimiyah's life was not limited to the world of writing and words.When the situation required it, without hesitation, he also engaged in political and public affairs.That is, Ibn Taimiyah's excellence not only included his skill in writing and speaking, but also included his bravery on the battlefield.The high esteem in which Ibn Taimiyah was held by the people and the government led to envy among some, who tried to defame him.History records that throughout his life, Ibn Taimiyah was imprisoned four times as a result of the slander hurled by his opponents.He died in the prison of Qal`ah Dimashq witnessed by one of his students named Ibn Qayyim.Ibn Taimiyah spent two years three months and a few days in prison, facing illness for more than twenty days.Afterward, his body was placed in the Jami Bani Umayah mosque after Zhuhr prayer, attended by government officials, scholars, soldiers, and local citizens.He died on the 20th of Dhul-Hijjah 728 AH and was buried at Asr time next to the grave of his brother, Shaykh Jamal Al-Islam Sharaf al-Din (Islahi, 1997).

Market intervention policy in the case of rising rice prices in Indonesia
In the market mechanism, supply plays a crucial role, where there is a direct correlation between the price and quantity of goods available.The basic principle of the law of supply states that if the price of a good increases, the quantity of the good available will also increase; conversely, if the price decreases, the quantity of the good available will decrease (Muhammad, 2005).The trigger for the increase in rice prices is the unstable production of rice in the country as it is currently the dry season so not many farmers are harvesting rice.In addition to this, extreme drought conditions or el nino are predicted to peak in August to September 2023.This has also caused public concern resulting in panic buying which can lead to increased demand for rice.Another factor that continues to push up rice prices is the global dynamics reflected in the restrictive policies of rice exporting countries.For instance, India, the world's largest rice exporter, banned the export of non-basmati rice last July 2023.
Of course, this action has had a significant impact on rising rice prices in Indonesia.
Global dynamics, especially the policies of major rice exporters such as India, play an important role in determining rice prices in the international market.India's export ban on non-basmati rice created supply pressure, which in turn contributed to the rise in rice prices globally.In this context, Indonesia, as one of the major rice importers, was forced to face the impact of the policy, which resulted in higher rice prices at the domestic level.This illustrates how global events can affect the dynamics and stability of rice prices in the local market.
In the face of rising rice prices as a daily staple, the Government takes market intervention measures and proactive measures to mitigate risks and maintain economic stability.When conducting market intervention, the measures taken by the government involve establishing and enforcing regulations related to rice commodities, with reference to the provisions in Law No. 18/2012 on Food.Currently, the efforts made by the government in the context of market intervention to stabilize rice prices are in several ways:

1) Social assistance program
The government is implementing a social assistance initiative by providing 10 kilograms of rice to beneficiary families (KPM).The program will be implemented in two phases over three months, starting from September to November 2023.The main objective of implementing this social assistance program is to reduce the economic burden faced by the community as a result of rising rice prices.In addition, this program was initiated as a concrete step by the government in maintaining stability and lowering the overall price of rice.The government's move to provide rice assistance to KPM is in line with efforts to respond to the economic challenges faced by the community due to rising prices of basic necessities, especially rice.By providing assistance of 10 kilograms in two stages during the quarter, it is expected to provide significant assistance to beneficiary families.In addition to being a concrete effort to overcome economic difficulties, this program also reflects the government's attention to the stability of rice prices in the domestic market.

2) Market Operation with SPHP Program
The government, in collaboration with the National Logistics Agency (Bulog), has intensified the distribution of rice through the Stabilization of Food Supply and Prices (SPHP) Program.This program is a variation of market operations aimed at supporting the public in obtaining rice supplies at more affordable prices, in line with the establishment of the Highest Retail Price (HET).
The steps in the SPHP are one of the government's concrete measures designed to maintain the stability of rice supply and prices in the market, with the hope of providing economic relief to the community.Through a partnership with Bulog, the government seeks to optimize rice distribution to achieve efficiency and fairness, so that the benefits can be felt by those in need.
By running this program for a certain period, the government seeks to guarantee the availability of rice at a reasonable price, thus minimizing the impact of market fluctuations on people's purchasing power.The purchase conditions for the SPHP cheap rice program are limited to 10 kilograms per consumer.This restriction aims to prevent the public from 'Panic Buying' or buying in large quantities.In addition, the HET as a price reference provides a clear basis for the implementation of this program, promoting fairness and transparency in the distribution of rice to the community.

3) Determination of HET (Highest Retail Price)
The determination of the Highest Retail Price (HET) of rice is a decision taken by the government and documented in the Regulation of the National Food Agency of the Republic of Indonesia Number 07 of 2023.The Head of the National Food Agency (Bapanas) emphasized that the rice price ceiling has a crucial role as an indicator for the government in formulating food stabilization policies.Before implementing the rice price ceiling, the government carries out a careful and thorough process, including detailed calculations such as mapping production costs to the affordability of the community in each region (Pratiwi, 2023).With the determination of the rice price ceiling, the community as consumers can get affordable rice prices and farmers as producers also have price certainty.

Santi
Merlinda et al., (2022) the role of government through market intervention in Islamic Perspective (Case Study: Fuel Price Inflation in Indonesia).The research explains that prices are left to the forces of demand and supply.The government is not allowed to intervene in normal the government is only allowed to intervene in an emergency.In concept of the Islamic market mechanism, commodity prices are set by the market mechanism, meaning that prices apply depending on demand and supply.Sukamto (2012) Understanding the Mechanism of Market in Islamic Economics explains how the Prophet SAW respects the mechanism that occurs in the market as sunatullah that must be respected.Mechanism that occurs in the market as sunatullah that must be respected.viewson markets and prices from some great Muslim thinkers such as Abu Yusuf, Al-Ghazali, Ibn Taymiyyah and Ibn Khaldun are also revealed in this study.Ghazali, Ibn Taymiyiah and Ibn Khaldun are also revealed in this study.Their thoughts Their thoughts on the market mechanism are not only able to provide a sharp analysis of what happened at that time, but also classified as modern for today.Many of their thoughts were only discussed by western economists hundreds of years later.Farma (2018) Market Mechanism and Price Regulation: An Examination of Ibn Taimiyah's Thought.The result of this research is that the market has an important position in the economy.Islam views the importance of government intervention in pricing.Only in cases Taimiyah Ibn Taimiyah, whose full name is Taqi al-Din Abu al-Abbas Ahmad ibn Abd al-Halim ibn Abd al-Salam ibn Abdullah ibn Abu Bakr Muhammad ibn al-Khald ibn Mahmud al-Zahiri al-Harrani al-Hanbali, was born on January 22, 1263 M (10 Rabiul Awwal 661 H) in Harran, Turkey.He came from a family of religious scholars.His father, Shihabuddin ibn Abd al-Halim ibn Abd al-Salam ibn Abdullah ibn Abu Bakr Muhammad ibn al-Khald ibn Mahmud al-Zahiri al-Harrani al-Hanbali, was a Shaykh, judge, and preacher who also had proficiency in religious sciences.His grandfather, Majduddin Abul Birkan Abdussalam ibn Abdullah ibn Taimiyah al Harrani, was a scholar who had extensive expertise in various fields of knowledge, including fiqh, hadith, tafsir, ushul science, and memorization of the Qur'an.Ibn Taimiyah was born at a time when Baghdad was the center of Islamic power and culture during the Abbasid Dynasty.At the age of seven (in 1262), Ibn Taimiyah moved with his father to Damascus due to Mongol attacks in Iraq.From an early age, Ibn Taimiyah was educated in various fields, including Islam jurisprudence, hadith, Quranic exegesis, mathematics, and philosophy.His prowess and intelligence were apparent from childhood, and upon arriving in Damascus, he immediately memorized the Qur'an and pursued lessons Journal of Islamic Economic Laws Vol. 7 No. 1, 2024 (ISSN P: 2655-9609; E: 2655-9617) DOI: Journal of Islamic Economic Laws Vol. 7 No. 1, 2024 (ISSN P: 2655-9609; E: 2655-9617) DOI: