Govt will to help farmers doubted<\/p>\n
President Abdurrahman Wahid commemorated the World Food Day on
\nMonday by warning farmers to adapt to free-market conditions as
\nthe government would scrap the protection of subsidies in 2002.
\nMeanwhile, director general of foodcrops Saripuddin Karama,
\nclaimed Indonesia has again become self-sufficient in rice after
\na decade-long slump in production. These remarks came amid
\nfarmers' cries for help because of plunging prices due to
\nimported and \"semi-smuggled\" rice. The Jakarta Post spoke about
\nthe issue recently with a professor of the Bogor Institute of
\nAgriculture, Didin S. Damanhuri. A related article is also run on
\nthis page.<\/p>\n
Question:Farmers are suffering from poor rice prices. If this
\nis a disease, the conditions would be acute. What emergency
\ntreatments do you suggest the government take?<\/p>\n
Answer: The necessary steps are clear. Firstly, stop rice
\nimports. Secondly, control (the distribution) of imported rice
\nthat is already here. Next, take measures against illegal rice
\nimporters. Then, reallocate the windfall profit from oil prices
\nto purchase the farmers' rice stocks regardless of their quality.<\/p>\n
Then, at the regional level, provincial and regency
\nadministrations should cooperate with farmers association to
\nbuild rice barns (so farmers can keep their stocks until prices
\nare better). In this approach, farmers become subjects (of a
\nprocess). They are given the options to think about how to raise
\nthe funds to build good barns.<\/p>\n
The longer-term approach to take would be to revive the
\nNational Logistics Agency (Bulog) buffer stocks, in case the
\nfarmers stop producing. In the meantime, reform the central and
\nregional logistics agencies -- something that Coordinating
\nMinister of Economics Rizal Ramli has initiated but far from
\ncompleted yet.<\/p>\n
The regional and local logistics agencies must be pushed to
\npurchase the farmers' rice stocks -- something that many
\nlogistics agencies have often refused to do because they did not
\nhave enough funds.<\/p>\n
If the government has the political will to take care of the
\nproblem, and really allocate the windfall to help farmers and
\nreally clean the (rice production and trade), Insya Allah (God
\nwilling), the farmers can really be rescued.<\/p>\n
What if those measures are not taken?<\/p>\n
Don't forget, we are talking about millions of people here.
\nWhat if disgruntled farmers organize themselves and revolt? It's
\na scary thought. Even now there are farmers in various
\norganizations who have established their own organizations (out
\nof frustration).<\/p>\n
Evil as it was, the New Order regime was the time when farmers
\nwere made into success stories in the 80s -- even if agriculture
\nremained merely a support staff for the pillar of industry.<\/p>\n
This administration under Gus Dur (Abdurrahman Wahid) has not
\neven tried to show any efforts (to accomplish the same feat).
\nInstead, his administration is bailing out errant debtors who are
\nmostly large corporations -- Gus Dur should be warned that he
\nshouldn't let his administration become the second New Order (in
\nterms of supporting big businesses at the expense of other
\nsegments in society). Those big debtors should just be declared
\nbankrupt.<\/p>\n
Gus Dur should instead develop agribusiness. Only then can we
\nget on with our economic reform and correct past mistakes.<\/p>\n
Let's go back a bit. What caused the rice prices to drop?<\/p>\n
It's a complicated matter, but mostly it is caused by the
\nimported rice influx. Speculators are having a field day, they
\nare acting like Bulog in reverse, hoarding stocks for their own
\nprofiteering.<\/p>\n
The second cause is simultaneous harvests in some places which
\nled to an oversupply. And certainly there is the involvement of
\ntengkulak (loan-sharks who buy crops from cash-strapped farmers
\nat the early planting stage); they either collaborate with the
\n\"rice mafia\" or play individually.<\/p>\n
They distort prices, they manage to purchase rice for Rp
\n400\/kg from the farmers. On top of that, farmers have to deal
\nwith imported and \"illegally imported\" rice. We should not let
\nthe \"rice mafia\" pile up further profits.<\/p>\n
When Bulog was still an active agency, the farmers were
\nrelatively protected. (Following agreements with the IMF) the
\nfunctions of the body were reduced drastically. What we have now
\nis an irrational price decline. This is no longer the market
\nforces at work.<\/p>\n
How are we going to stop the speculators?<\/p>\n
Bulog, the agriculture ministry, the trade and industry
\nministry, police and intelligence should all cooperate and fight
\nthem.<\/p>\n
Certain circles know how the \"rice mafia\" operate. They
\nmanipulate documents for certain import procedures. They buy
\ncheap rice from overseas, and hoard it in some warehouses rented
\nillegally with the collaboration of some insiders. This mafia may
\ninvolve people from within Bulog, the trade and industry
\nministry, the agriculture ministry and customs. Without such
\ncollusion, they would not have such a smooth operation.<\/p>\n
I know for sure that at one time, when Bulog still had a
\nsubstantial role, these people manipulated the import documents
\nand increased import from 2.75 million tones to 3.4 million
\ntones. Within a short period of time, they made a profit of an
\nestimated Rp 2 trillion. We can imagine what a party they had
\nwhen (former minister) Rahadi Ramelan liberated rice imports with
\na tax holiday.<\/p>\n
Some parties are bound to resist should the government execute
\nthe emergency measures you are proposing.<\/p>\n
I am sure there will be great resistance from many people who
\nhave so far been profiting from the situation. May be the
\ncoordinating minister dares should cooperate with the military,
\nthe intelligence and other agencies.<\/p>\n
But if he really dares take these steps, people's trust in the
\ngovernment would return. That's what has been missing, the
\npeople's trust.<\/p>\n
Of course the resistance would be great. But the people, and
\nfarmers who make up the majority of our population, would stand
\nbehind (Rizal). They are now increasingly aware of their rights.
\nSurely they will support Rizal if he takes those steps.<\/p>\n
Do you think the government will eventually engage in those
\nsteps?<\/p>\n
Actually, I am now a bit pessimistic. I know they, Gus Dur,
\nRizal, can do that, but I am pessimistic they will do it. You
\nknow, I agree with (Musa Hubeis) who calls those who profiteer
\nfrom farmers as traitors. They are traitors.<\/p>\n
But we understand how sensitive this matter is. Rice is a
\nsensitive matter. Some people can provoke unrest using the issue
\nof rice. They can manipulate sentiments in such a way that leads
\nto separatism, that leads to disintegration. Provocateurs can
\nhave a field day exploiting the issue of rice.<\/p>\n
We all know there are many businesspeople who, during the New
\nOrder regime, made trillions of rupiah from (exploiting) rice
\nprices, and surely they would resist any effort to stop this
\nsituation. They would still want to retain (the conditions that
\nenable them to make large profits).<\/p>\n
Now if our farmers do not trust the government, do not believe
\nin the steps that the government is taking, I am really worried
\nabout what might happen.<\/p>\n
Indonesia will need a paradigm shift if it wishes to turn
\nagribusiness into the mainstay of its industry. Do you think the
\ncurrent administration is working toward that?<\/p>\n
Gus Dur's inclination toward shifting the national industry
\nparadigm is zero. Even Rizal Ramli's ten-step plan of action is
\nstill far from introducing that shift. His programs on farming,
\nresearch and development, for instance, barely touch on the need
\nfor a paradigm shift. This is despite the importance of having
\none. Our entry point would be the rice farmers.<\/p>\n
Is there anyone you hoped would initiate the paradigm shift?<\/p>\n
Rizal should be the one. I know him well, we studied together.
\nHe should be bold and take radical actions. So far, he is only
\nspoiling big businesses through the MSAA, despite the fact that
\nthey are obviously so uncooperative. (swe)<\/p>",
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