Rice Subsidy Abused by State Loss Trillions of Rupiah

By : Aldo Bella Putra | Monday, July 24 2017 - 16:20 IWST

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INDUSTRY.co.id - Jakarta - The loss of trillions of rupiah suffered by the state for the crime of counterfeiting of rice by PT Indo Beras Unggul (PT IBU) comes from various government subsidies that have been abused.

 "The meaning of rice to get subsidy is in the production of rice, there is subsidy of inputs namely seed subsidy Rp1, 3 trillion and fertilizer subsidy Rp31, 2 trillion, plus added assistance of facilities and infrastructure for farmers from Government of trillions of rupiah too, Head of Socio-Economic Data Sub-Division at Data Center and Sunday (7/23/2017).

In addition to input subsidies, it also said that there is a prosperous rice subsidy (rastra) which amounted to Rp19, 8 trillion. "There is also a prosperous rice subsidy (Rastra) for target households (pre-prosperous) of about Rp19.8 trillion, which is one-door distribution through BULOG, and is not traded on the market," he said.

Rice processed by PT IBU is medium rice derived from new superior varieties such as IR64, Impari, Ciherang, and others.

"All the medium and premium rice is derived from the grain varieties New Varieties (VUB) that is IR64, Ciherang, Mekongga, Situ Bagendit, Cigeulis, Impari, Ciliwung, Cibogo and others are produced and sold from farmers range Rp3.500 - Rp4. 700 / kg of grain," he said.

According to him, PT IBU bought the rice from farmers at Rp7.000 / kg and sold up to Rp20.000 / kg whereas the highest retail price for medium rice in consumers is only Rp9.000 / kg.

 "The price of reference in the consumer or commonly called Price Upon not suddenly, since last year has been issued HET.In 2016 has been issued Permendag No. 63 / M-DAG / PER / 09/2016 with the reference price of rice in farmers Rp7.300 / kg and In consumer price Rp9.500 / kg, then in July 2017 issued Permendag No. 47 / M-DAG / PER / 7/2017 with the reference price of rice at Rp7.300 / kg farmers and consumers Rp 9000 / kg," he said.

With such a large price difference, PT IBU has benefited from an estimated Rp10 trillion per year.

"The price of rice in the farmers is around Rp 7,000 / kg and the premium price in the consumer up to Rp20.000 / kg, put this price difference at least Rp 10.000 / kg when multiplied by the circulating premium rice 1.0 million tons (2.2 percent of rice 45 Million tons a year), then the economic loss is estimated at Rp10 trillion," he said.

He added that the business done by PT IBU has harmed the producers and consumers and influenced the rising inflation.

"The state is harmed because the producers and consumers are the people of Indonesia, and will have an impact on inflation," he said.

He requested that the authorities take firm action against the perpetrators of crime of food crime. "Food crime, whatever its form must be dismantled and stopped," he said. (Ant)

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