Minggu, 02 Februari 2014

TRADE MINISTER RESIGNS LEAVING RICE IMPORT PROBLEM BEHIND

 By Andi Abdussalam 
          Jakarta, Feb 2 (Antara) - Gita Wirjawan's resignation as trade minister amid controversies over the importation of 16.900 tons of rice from Vietnam can create a different perception, though, he says, his resignation has no link with the rice import.
         "Although Gita Wirjawan has explained that he resigns because he wants to concentrate on a presidential candidate convention, his resignation can create another perception because it happens amid controversies of rice imports," Siti Zuhro, senior political researcher of the Indonesian Institute of Sciences (LIPI), said on Saturday.
         She is of the view that Gita's decision to resign from his post as trade minister was not a correct step because it happened amid the controversies over rice imports whose permits were issued by his ministry (the Ministry of Trade).
         "Gita's resignation is questionable whether his reason is really for concentrating on the presidential candidate convention. Why he resigns amid the rice import controversies issue," the LIPI researcher questioned.
         She argued that as a leader he should be responsible and should have settled the rice problem before he resigned.
         The rice import issue could serve as a test for Gita who is taking part in the Democratic Party's presidential candidate convention. A leader will never back down in the face of a problem, Zuhro said.

 
         The ruling Democratic Party (PD) has been organizing a convention since last September to select its presidential candidate for the July 9, 2014 presidential race. Gita is one of the 11 participants of the convention.
         Gita announced his resignation as trade minister on Friday (Jan.31 and effective as of February 1, 2014), while Chief Economic Minister Hatta Rajasa's requested the Trade Ministry and the Agriculture Minister to investigate the alleged abuse of rice import permits.
         The controversies of the importation of the rice arose when it was found that medium category of rice from Vietnam had flooded the market.  The permits from the Ministry of Trade only allowed the importation of rice of the premium category.
         The Ministry of Trade said it had issued rice import  permits based on recommendations from the Ministry of Agriculture. However, the Ministry of Agriculture denied having issued a recommendation to import rice.
         "We have sent today a letter to the Ministry of Trade asking for clarifications," Agriculture Minister Suswono said on Wednesday last week.
         He said based on data, the Directorate General of Processing and Marketing of Agricultural Products (P2HP), which was authorized to issue recommendations for the importation of rice of special category, has never issued recommendations for the importation of special type of rice from Vietnam in 2013.
         Minister Suswono said that it was impossible for rice of the special category to circulate in the market. Therefore, if there was special rice circulating at the Cipinang Rice Wholesale Market, there must be a violation. This should be thoroughly investigated to disclose the violators.
         According to the minister, intended as rice of special category is rice usually consumed by people who suffer from a certain disease such as diabetes  or rice imported under a request of certain restaurants.
         "The special rice can be imported to meet the demand of (certain consumers) and restaurants," Suswono said.
         The importation of the 6,900 tons of rice was carried out by 58 registered importers who received Letters of Order for importation of rice (SPI) from the Ministry of Trade.
         The imported rice from Vietnam is considered illegal because its quality is medium. Rice which is allowed to be imported only that with premium quality. Medium quality of rice may only be imported by state-owned logistics agency Bulog.
         Gita Wirjawan said last week that his ministry issued import permits for the importation of special rice based on recommendations from the Ministry of Agriculture. He said his ministry only followed up the Ministry of Agriculture's recommendations.
         Therefore, Chief Economic Minister Hatta Rajasa ordered the Trade Ministry and the Agriculture Ministry to investigate the alleged illegal entry into Indonesia of the Vietnamese rice.
         "I have met with Agriculture Minister Suswono and the trade deputy minister, asking them to investigate the case soon," Hatta Rajasa said  on Thursday. 
    The minister added that there were indications of abuse of import permits. Based upon the permits, the importers were not allowed to import medium category rice.

         "There is nothing wrong with the Agriculture Ministry and the Trade Ministry. The permits have correctly been issued. But the importers who used the licenses might have abused them," Hatta stated.
         "The Ministry of Trade has issued import permits for the importation of special rice based on the Agriculture Ministry's recommendations. But in reality, the rice circulating in the market was that of the medium category, not the premium one. So, we should investigate the importers," Hatta said.
         Now, the Trade Ministry is conducting an investigation on three rice importers suspected of having abused their permits by importing medium category of rice from Vietnam.
         "We are investigating and focusing on three importers," Director General of Foreign Trade at the Ministry of Trade Bachrul Chairi stated on Friday.
         He said it would take time to investigate the case, but the three importers had been identified out of the 165 importers who had been granted permits to import rice in 2013. 
    Two of the three importers were suspected to have abused their trade permits. The other one had allegedly let its permit be used by other company for importing the rice.

         "Two importers are suspected to have been involved in wrongdoings, while the third one had allowed his permit to be used by other people. The report about the importers may be wrong, but we will carry out the necessary investigations. The quality of the rice will be examined in laboratories," the director general remarked.
         Last year, the Ministry of Trade issued permits for the importation of 16.9 thousand tons of special rice, consisting of 1,845 tons of the Basmati variety and 14,997 tons of the Japonica variety.
         According to the Directorate General of Customs and Excise, the rice imports from Vietnam have been shipped 83 times and involved 58 importers, other than the state-owned logistics agency Bulog.   
    The rice was imported via Tanjung Priok port in North Jakarta and Belawan port in North Sumatra. The rice imports were supported by import permits and surveyor's reports.

         However, Director General of Customs and Excise Susiwijono Moegiarso did not rule out the possibility of the import permits being abused on the grounds that the permits included written approvals intended to import special rice.
         This is instead of medium category of rice, which can be imported only by state logistics board Bulog.
         "This has happened as the HS codes of the two types of rice are the same: 1006.30.99.00.  
    Under the Trade Minister's Regulation No.06/M-DAG/PER/2/2012, the import of medium category of rice, with headings 1006.30.99.00, can be performed only by Bulog, with approval from the ministry, to stabilize prices, cope with a state of emergency, provide subsidized rice for the poor, or address food scarcity issues.***2***

(T.A014/b003/B003)

(T.A014/A/A. Abdussalam/Bustanuddin) 02-02-2014 19:32:

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