Gerindra Reveals Four Inconsistencies in Rice Import Policy

By : Herry Barus And Aldo Bella Putra | Sunday, January 14 2018 - 23:00 IWST

Wakil Ketua Umum Partai Gerindra Fadli Zon (Foto Dok
Wakil Ketua Umum Partai Gerindra Fadli Zon (Foto Dok - Jakarta - The government's plan to import 500,000 tons of rice by the end of this month proves chaos in food governance in Indonesia.

"It also shows the low quality of food data that they have," said Vice Chairman of Gerindra Party Fadli Zon in Jakarta, Sunday (14/1/20178).

According to him, the policy initiated by the Ministry of Trade is very strange. Fadli saw no government statement synchronized with each other. He also mentioned there are at least four peculiarities in rice import policy.

First, the Ministry of Agriculture until now still claims that in January 2018 there will be a rice surplus of 329 thousand tons. Referring to data from the Central Bureau of Statistics, Kementan said throughout 2017 rice production reached 2.8 million tons, while consumption rate of around 2.5 million tons.

"If the figure is right, it should be a surplus of rice, but the price of rice in the market actually rises," said Fadli.

Second oddity is the government mentions the scarcity of rice occurs in the type of medium that has been consumed by the middle class society. However, import licenses issued by the Ministry of Trade for premium rice.

"It's not disconnected, which is considered a problem where but the settlement is somewhere," said Fadli.

Third, the government argued rice imports as an effort to maintain price stability in the consumer level. In accordance with the provisions, including Permendag 1/2018, which is structured, to legitimize rice imports, general import licenses can only be carried out by the Logistics Agency (Bulog).

"Please read section 16 Permendag 1/2018. Well, this trade minister even gave his permission to other companies," said Fadli.

The fourth peculiarity is that import permits are issued by the government just as the farmers are facing the harvest season.

"The four peculiarities are more than enough to prove that the government has not been transparent in managing the food policy, and I think the exaggeration of the recent increase in rice prices is actually the government itself, and it is triggered by the absurdity of the highest retail price rules, " explained Fadli as reported by Rmol.

He added that when the price equilibrium in the rice market is above Rp 9,000 per kilogram, the government even set the medium rice HET for example at Rp 9,450. It also appears that HET policy is a pre-condition for legitimizing rice imports.

"If the price of rice rises, while on the other hand the government claims rice production is actually surplus then the government should do is market operations rather than imports," said Fadli who is also the executive of the chairman of the House of Representatives.

News Comment

Today's Industry

Huawei earns MOCN Partners Award from Indosat

Rabu, 31 Mei 2023 - 16:30 WIB

Huawei Recognized as Outstanding Partner from Indosat in MOCN Partner Awards for Successful Network Integration

Indosat Ooredoo Hutchison (Indosat), has achieved a significant milestone in its mission to connect and empower the people of Indonesia, after completed the merger in January 2022.

65 years APO Tokyo

Rabu, 31 Mei 2023 - 15:28 WIB

65th Session of the APO Governing Body in Mongolia: Assessing Progress, Celebrating Milestones, Shaping the Future

The Asian Productivity Organization (APO) successfully concluded the 65th Session of its Governing Body (GBM) with representatives of 19 APO member economies attending in Ulaanbaatar, Mongolia,…

World Fishing Championship, the First Fishing Game on WEMIX PLAY, Launches in 170 Countries (Graphic: Wemade)

Rabu, 31 Mei 2023 - 15:00 WIB

World Fishing Championship, the First Fishing Game on WEMIX PLAY, Launches in 170 Countries

Wemade officially launched World Fishing Championship, a fishing game developed by Wemade Plus, on May 25th in 170 countries.

President Jokowi launched the IKN logo, Tuesday (30/05/2023), at the State Palace, Jakarta. (Photo: Public Relations of Setkab/Agung)

Rabu, 31 Mei 2023 - 14:35 WIB

President Jokowi Launches IKN Logo Themed Tree of Life

Indonesian President Joko Widodo (Jokowi) officially launched the Indonesian Capital City logo (IKN), Tuesday (30/05/2023), at the State Palace, Jakarta.

Falcon 40B," the UAE's first large-scale AI model, is now open source for research and commercial use. (Photo: AETOSWire)

Rabu, 31 Mei 2023 - 14:05 WIB

UAE's Technology Innovation Institute Launches Open-Source "Falcon 40B"

The Technology Innovation Institute (TII), a leading global scientific research center and the applied research pillar of Abu Dhabi’s Advanced Technology Research Council (ATRC), today strengthened…