Govt defines hoarding as 3 months worth of stocks
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)