E. Java govt moves against imported rice

Ainur R. Sophiaan, The Jakarta Post, Surabaya

After a lengthy debate, East Java Governor Imam Utomo announced on Friday a policy that bans the import of rice in a bid to protect local farmers bracing for a big harvest.

"I had a meeting with relevant officials over the rice issue, and I have now issued a decree to ban any kind of rice imports. I'm convinced the trade minister will approve our policy," Imam told reporters after the meeting at his office.

He threatened to unload and seize imported rice at the Tanjung Perak seaport or any on its way to the province.

"I have instructed customs and excise and port officials, and other related staff to stop any kind of rice imports. The rice should be returned to the exporting countries." Imam said.

There are 1,152 tons of rice imported from India that await disposal at Tanjung Perak seaport. The rice, packed in 48 containers, was ordered by Tani Nusantara cooperative in Jember. The cooperative is led by Arum Sabil.

Also facing draconian measures are 6,000 tons of rice imported by PT Louis Dryfood Indonesia in Gresik, near here. The rice is being kept at the Gresik industrial estate.

Imam was responding to the flood of imported rice that had poured into the province's markets over the past few months.

Provincial councillors of Commission B for the economy have, on several occasions, found rice that was unaccounted for. They suspected that the provincial logistics agency was involved in an import scam, using state funds allocated to buy unhusked rice from local farmers.

Early in June councillors discovered 12,000 tons of rice imported from India hoarded by a supplier to the agency during their unscheduled visit to the firm's premises. More imported rice was found in the warehouses of Tani Nusantara cooperative and a Gresik-based firm.

Provincial customs and excise data revealed that 17 importers brought in 348,672 tons from Thailand, India, Vietnam, and Australia in the first semester of 2002. Of the amount, 16,019 tons came from the World Food Program and 66,494 tons from the State Logistics Agency for its rice for the poor program.

Reports said the imported rice had been mixed with the local product before it was sold at a lower price.

Head of the provincial agriculture agency Mohammad Maksum said that as of April local farmers had produced 4.9 million tons of rice, or 58 percent of expected output.

East Java is among the country's major rice producers.