Rice subsidies to end in 2002, says Gus Dur<\/p>\n
JAKARTA (JP): President Abdurrahman Wahid said on Monday he
\nhad acquiesced to the International Monetary Fund (IMF) and
\nagreed to end rice subsidies in 2002.<\/p>\n
Abdurrahman, or Gus Dur, said rice prices would be fully
\ndetermined by \"market mechanisms\" in 2002.<\/p>\n
\"I already agreed with Stanley Fischer to provide subsidies
\nfor rice until 2002,\" he said, referring to the IMF managing
\ndeputy director.<\/p>\n
The State Logistics Agency (Bulog) regulates domestic rice
\nprices by intervening in the market, particularly when prices
\nplunge and farmers need protection.<\/p>\n
The agency also sets import tariffs to protect farmers from
\ncheaper rice imports. The tariff was set at 30 percent earlier
\nthis year.<\/p>\n
In addition to the above measures, the government also has
\nbeen providing subsidies to farmers through cheap fertilizer and
\ncredit.<\/p>\n
Rice is a politically sensitive commodity in the world's
\nfourth most populous nation, both because it is the main food
\nstaple of the more than 200 million population and the main crop
\nof the farmers, particularly in Java.<\/p>\n
The IMF, which is providing a multibillion dollar bailout for
\nthe country, has been against the subsidy policy.<\/p>\n
Gus Dur said that although the farmers still had three years
\nto enjoy government subsidies, they should start making
\npreparations for the free import of rice beyond 2002.<\/p>\n
Separately, the director general for food crops at the
\nMinistry of Agriculture and Forestry, Syarifuddin Karama, said on
\nMonday Indonesia had become self-sufficient in rice after years
\nof falling production.<\/p>\n
\"Our unhusked rice production this year amounts to 50 million
\ntons. So we have become self-sufficient again after declining
\nrice production since 1990,\" Syarifuddin said.<\/p>\n
Indonesia's annual rice consumption is around 30 million tons.
\nThe country first became self-sufficient in rice production in
\n1984.<\/p>\n
Syarifuddin, however, said the government would continue to
\nallow the import of high-quality rice to fill temporary gaps in
\nproduction.<\/p>\n
He said the imports were subject to an import tariff of 30
\npercent.<\/p>\n
Meanwhile, Junior Minister of Forestry Nurmahmudi Ismail
\nwarned provincial and district authorities to balance the use of
\nland for agriculture and industry.<\/p>\n
\"The ministry's data shows that in the 10 years from 1983 to
\n1993, the country lost some one million hectares of food-related
\nland plots due to rapid industrialization,\" Nurmahmudi said at a
\nceremony marking the 20th World Food Day.<\/p>\n
The warning was made ahead of the implementation of the
\nregional autonomy law in January. There are fears that the more
\npowerful local authorities will be even more aggressive in
\ntransforming agriculture land for industrial use.<\/p>\n
Syarifuddin said that maintaining the agricultural plots was
\ncrucial to provide sufficient food supplies.<\/p>\n
\"Only 13 out of the nation's 26 provinces are self-sufficient
\nin food supplies,\" he said. (rei\/edt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rice-subsidies-to-end-in-2002-says-gus-dur-1447893297",
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