Indonesian Political, Business & Finance News

Central Java provides fertile ground for unrest

| Source: JP

Central Java provides fertile ground for unrest

BLORA, Central Java (JP): Looting broke out again in Blora on
Wednesday when crowds of people said to be from out of town
ransacked stores in search of fertilizers.

Witnesses said 1,000 people arrived in Todanan, 40 kilometers
northwest of Blora, early on Wednesday morning. They arrived on
motorcycles, in trucks and on foot.

District head Adi Purwanto said the people had come in search
of fertilizers from villages in the nearby regency of Grobogan.
However, agricultural supplies stores in the local market have
been closed since unrest sparked by the price and shortage of
fertilizers first flared up here on Sunday.

Looters claimed traders have been hoarding fertilizers and
said they could not afford to pay the new unsubsidized prices.

On Friday, Minister of Agriculture Soleh Solahuddin said the
government had decided to lift subsidies on fertilizers and end
restrictions to their trade after state fertilizer firm PT Pupuk
Sriwijaya (Pusri) failed in its duty to ensure that an adequate
supply of fertilizers reached the nation's farmers.

Producer floor prices for unhusked rice were also raised at
the same time to compensate farmers.

Unrest caused by a shortage of fertilizers first flared up in
the area on Sunday. On Monday evening, 2,000 people looted shops
and houses, including five shops selling fertilizers. Stores
selling general supplies and gold were also looted.

Regent Soekardi appealed to shop owners to sell fertilizers at
the old, subsidized prices after looting lasted well into Tuesday
afternoon.

As of Tuesday, only one shop had reportedly been forced to
sell urea and SP36 fertilizer for the old prices of between Rp
500 and Rp 800 per kilogram. Prevailing market prices are now Rp
1,115 and 1,600 per kilogram respectively.

On Wednesday, crowds were also seen carrying sacks of
fertilizer out of a warehouse belonging to Pusri.

All motorists approaching the area were stopped by police and
warned to be careful. (har/anr)

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