Amran Takes Critics to See Rice Warehouse, Shares Story of Battling the Food 'Middleman' Mafia

KARAWANG, KOMPAS.com - Agriculture Minister Andi Amran Sulaiman directly confronted criticisms regarding the high prices of food, despite production and stocks being deemed secure.

The dialogue took place with several observers in Karawang, West Java. They included economist Ichsanuddin Noorsy, political analyst Hendri Satrio, and communications expert Ujang Komarudin.

Amran did not merely present data. He also invited the observers to directly view the rice stocks at the Bulog warehouse. The Government Rice Reserve at that time was recorded at 5,000,198 tonnes.

The main criticism came from the pricing aspect. Ichsanuddin assessed that there is a serious problem in the distribution chain.

“The supply chain is still controlled by what I call rent-seekers. The impact is that end prices remain high,” said Ichsanuddin.

Amran did not deny it. He acknowledged that high prices do not stem from production, but from a long and multi-layered distribution process.

Farmers’ products pass through many hands. From collectors, then to distributors, sub-distributors, wholesalers, to retailers before reaching consumers.

Each layer adds a margin. The government calculated that the total profits at the middleman level reach Rp 313 trillion.

This figure became the key point of Amran’s response. The price issue, according to him, is not at the upstream level, but in distribution.

“This is where we lose Rp 313 trillion, sir, by shortening it to three stages,” said Amran.

He offered a solution. The government will cut the supply chain through Village or Kelurahan Merah Putih Cooperatives. This scheme allows direct purchases from farmers and sales to consumers.

“How do you handle those middlemen, sir? They will surely protest losing Rp 313 trillion?” asked Hendri.

This question prompted Amran to explain a firmer approach. He cited the enforcement of a case involving adulterated rice by the National Police Criminal Investigation Agency.

According to Amran, such practices are not mere technical violations, but forms of excessive profiteering.

Perpetrators buy 34 percent broken rice at around Rp 8,000 per kilogram. The product is then sold as premium rice at Rp 17,000 per kilogram.

“If 2 million (kilograms), that’s Rp 10 trillion, sir. So I total all that’s sold at 100 trillion,” said Amran.

“These are the ones caught and already in prison. Clear, that’s the middlemen,” he continued.

At this point, Amran was no longer defensive. He turned the challenge back on the critics regarding the government’s hardline approach.

“My question, sir, which is cruel? The one that’s not finished yet? Which is cruel, eradicating 100 people or 1,000 people or the mafia through corruption, through whatever means, go ahead?” he said.