Jakarta, March 3 (Antara) -- Besides suspecting the involvement of
speculators, irregular distribution has also been blamed for the
increase in the prices of rice in a number of regions since last month.
"The government suspects that the rise in the prices of rice, which
reached up to 30 percent in recent days, was caused by acts of the rice
mafia. This should not have happened if the state-owned logistics
board's (Bulog) management was performing well," observer of economic
affairs, Suroto, who is from the Strategic Socio-Economic Cadres
Association (Akses), said on Monday.
Rice distribution was hampered by technical problems the last few
months. This led Bulog to delay the release of its rice stocks. It said
that the delay in the distribution of rice was because the regional
governments carried out the verification of rice allocation applications
(SPA) too slowly.
This
delay in the distribution has been blamed for the rice price hikes,
which have occurred in a number of regions in the country.
With
regard to these price hikes and the delay in the distribution of rice,
Suroto suggested evaluating Bulog to improve rice distribution
management in the country.
According
to him, many suspect that the rice mafia was behind the recent price
rise, which occurred even though the volume of rice reserves was
adequate but not in circulation. In fact, rice stocks are expected to be
adequate to meet demand till April.
"Bulog
should be evaluated because it is possible that the rice mafia has
started manipulating warehouse data. It is also likely that distributors
are hoarding rice," the Akses economic analyst observed.
The government ordered Bulog to release 300 thousand tons of its stocks
to help curb the increasing rice price in the market. However, Bulog is
still unable to carry out the task immediately due to the SPA problem.
This condition led Suroto to urge for the evaluation of the government's logistics agency.
In addition, the rice mafia could capitalize on this situation.
They could also have played their 'games' through the sale of stocks,
considering the presence of warehouses in regions where price disparity
is high, and therefore, gained enough margin after transportation fees.
"So they have been accumulating stocks. It (the price rise) could not
have taken place all of a sudden. They must have been hoarded in large
volumes in distributors' warehouses," he added.
He also pointed out that the sale of 'buffer stocks' can take place in
regions because there are individuals who want to reap personal
benefits.
"This is possible because the auditing system in Bulog's warehouses is
weak. It is probably because of its management's inability, or even
through deliberate attempts," he remarked.
Suroto suggested that as a short-term measure, the government should
conduct a comprehensive audit of warehouse contents and immediately
trace the lines of rice distribution to identify hoarding centers.
In a long-term, Bulog had better be returned to its former status as a
buffer for food stocks and be relieved of its status as a corporation
under the Ministry of State-Owned Enterprises.
However, Bulog has its own reason for why it was late in distributing
its rice stock. It said that the delay in the release of its stocks was
attributed to the slow verification of the SPA. The SPA should be
verified first by the regional governments before the Bulog sends its
rice.
"Bulog
can send the allocated rice in a day once it is ordered. But in the
field, local governments are slow in verifying the SPA. We should
receive SPA orders at the beginning of every month," Leli Pritasari
Subekti, director for public services of Bulog, stated on Monday.
As a result, Bulog could not distribute the 300 thousand tons of rice
stocks that it was asked to by President Joko "Jokowi" Widodo.
The President inspected the Bulog warehouse in North Jakarta to see its
reserves in response to the recent upward trend of rice prices. He then
ordered Bulog to conduct rice market operations to help offset the
prices and to meet the national need for rice.
She further explained that the delay in the handling of the SPA
verification was, among other reasons, due to administrative constraints
and the data collection of target households (RTSPM), which will
receive the rice. This is particularly with regard to the distribution
of rice for the recipients of the rice-for-the-poor (raskin) program.
"The verification process has to pass various levels from villages,
sub-districts, and districts to the provincial level," Subekti remarked.
She noted that many regional governments came into doubts in verifying
household recipient data because the central government has indicated it
will replace the raskin scheme with an e-money program.
"It will be a mistake if Bulog releases the rice without SPAs for the
raskin program and without an order from the trade minister. It should
all be based on calculations and the needed volume," she added.
Furthermore, President Jokowi has stated that the government will
continue to improve the rice stock and distribution system to maintain
rice price stability in the country.
"There is a delay in the harvest season and in the supply of rice, and
disturbances in the distribution system. We do not know whether there is
a 'game' at play. We are still studying it. We have been trying to
continue to send supplies," President Jokowi told reporters at the
Presidential Palace on Monday.
Although the government has been doing its best, the President appealed
to the people to be patient because the distribution of rice needed
time from production centers to Cipinang Rice Wholesale Market in East
Jakarta, from where the rice will be released to retail traders to
normalize the price.
"We need time because the rice, which is expected to arrive at
Cipinang, has yet to reach retail traders. We should wait for a few
weeks. The price in the Cipinang Market has been declining by an average
of Rp700 per kilogram," the President pointed out.
***3***
(T.A014/INE)
EDITED BY INE
(T.A014/B/BESSR/A. Abdussalam) 03-03-2015 19:51:3 |
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