Govt defines hoarding as 3 months worth of stocks

JAKARTA (JP): The Ministry of Industry and Trade issued a ruling yesterday banning commodity suppliers from holding more than three months worth of stocks in a move to curb hoarding.

The ruling also covers individuals, producers, exporters, importers, distributors, wholesalers, grocers, retailers and store owners.

People keeping more than three months worth of stocks "can be suspected of hoarding for speculative purposes using the opportunity to gain unreasonable windfall profits," the ministry said.

Under the new regulation, stocks should be "at a fair level to meet a maximum three-month market demand in normal conditions," the ministry added.

The regulation allows companies to apply for a permit to keep a larger stock of certain commodities which require a storing and selling period of longer than three months.

Such permits can be obtained from the Directorate General of Domestic Trade or the ministry's provincial, regency or mayoralty offices.

Violators will be investigated by the police and could face charges of hoarding, the ministry said.

Companies found violating the decree can lose their license to conduct business under the regulation.

Prior to the decree, the government had not clarified what constituted hoarding, causing uncertainty among traders.

Many traders and producers of essential goods have recently complained of harassment by police investigating their warehouses.

Indonesia is facing its worst economic crisis in decades, with the rupiah's value tumbling 70 percent against the U.S. dollar since last July.

Certain basic commodities, such as milk and cooking oil, have become scarce in supermarkets. Riots have broken out in several towns throughout the country with people burning stores they said hoarded goods.

Charges of hoarding essential goods carry penalties ranging from six years to death, officials have previously stated. They have said hoarders were to blame for soaring prices and shortages of basic items and could be charged with subversion, which could carry the death penalty.

Thirteen people have recently been detained by police on suspicion of hoarding. (das)