Govt blamed for sugar smuggling<\/p>\n
Abdul Khalik, Jakarta<\/p>\n
The Ministry of Industry and Trade was to blame for the rampant
\nsmuggling of sugar in the country during the past two years,
\nanalysts said on Friday.<\/p>\n
Civil Society Professionals chairman Ismed Hasan Putro said a
\ncombination of a lack of capital, inadequate networks and
\ninexperience meant none of the five companies the ministry had
\nappointed to import the sugar were up to the task.<\/p>\n
\"The sugar importation licenses were granted directly to
\nseveral incapable companies... without any public tendering
\nprocess,\" Ismed told The Jakarta Post.<\/p>\n
The firms -- state-owned plantation firms PTPN IX, PTPN X and
\nPTPN XI, PT Rajawali Nusantara Indonesia (RNI) and Perusahaan
\nPerdagangan Indonesia (PPI) -- were appointed in a ministerial
\ndecree in 2002.<\/p>\n
The decree, signed by Minister of Industry and Trade Rini MS
\nSuwandi, aimed to stabilize the price of local sugar. Previously,
\nmany firms had been allowed to import sugar, causing prices to
\nfall.<\/p>\n
Ismed said none of the plantation firms had any sugar trading
\nexperience, nor did they have the networks and funds to
\nmonopolize sugar importation.<\/p>\n
The firms were forced to set up business deals with other
\ncompanies, including the Confederation of Primary Sugar
\nCooperatives (Inkud) and its consortium, which they considered
\nexperienced players in the business, he said.<\/p>\n
\"However, these companies eventually became brokers and
\nreceived fees as compensation for their sugar importation quota
\n(without facilitating imports),\" said Ismed, who is also a sugar
\nbusinessman.<\/p>\n
He accused the Inkud and its consortium of having inadequate
\nfunds to import sugar.<\/p>\n
The Inkud consortium later appointed PT Phoenix, Sucofindo and
\nStandard Chartered Bank as their partners and guarantors to help
\nease the imports.<\/p>\n
Bogor Institute of Agriculture academic H.S. Dillon criticized
\nas unfair the appointment of the five firms.<\/p>\n
\"I agree that only a few companies should be allowed to import
\nsugar. But the appointment should be through a transparent
\nbidding process. Only the best tenders should be given licenses,\"
\nhe told the Post.<\/p>\n
He accused officials at the Ministry of Industry and Trade of
\nmisusing the ministerial decree to enrich themselves or other
\nparties.<\/p>\n
\"These companies are used only as cash cows by certain
\ngovernment officials at the ministry because they have no
\ncapacity as importers,\" Dillon said.<\/p>\n
Ismed said the government should annul the decree to allow
\nmore firms to import sugar and avoid the widespread smuggling.<\/p>\n
There has been a steady decline in sugar production since
\n1993, while the country's consumption rate has been climbing.
\nIndonesian sugar production stood at 1.8 million tons in 2002,
\nwhile domestic demand reached 3.2 million tons.<\/p>\n
Ismed said Indonesia needed to relocate sugar plantations to
\nareas outside Java, where land was still fertile for sugar, to be
\nable to compete with the imported product.<\/p>\n
\"To increase both the quantity and quality of sugar and lower
\nthe production cost, we should relocate sugar plantations,\" he
\nsaid.<\/p>\n
Ismed and Dillon said they believed the current smuggling case
\ninvolving the ministry, Inkud, PTPN X and the customs and excise
\noffice, was only the tip of the iceberg when it came to
\nsmuggling.<\/p>\n
They would not elaborate further.<\/p>\n
Meanwhile, the National Police said on Friday they had
\nsummoned Inkud chairman Nurdin Halid, who is a member of the
\nHouse of Representatives, for questioning on Monday in connection
\nwith the recent smuggling of 72,000 tons of sugar.<\/p>\n
\"We will question him as a witness. We have prepared a list of
\nquestions. If sufficient evidence is found during the
\ninterrogation, we will declare him a suspect,\" chief of
\ndetectives Comr. Gen. Suyitno Landung Sudjono said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-blamed-for-sugar-smuggling-1447893297",
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