Govt will to help farmers doubted

President Abdurrahman Wahid commemorated the World Food Day on Monday by warning farmers to adapt to free-market conditions as the government would scrap the protection of subsidies in 2002. Meanwhile, director general of foodcrops Saripuddin Karama, claimed Indonesia has again become self-sufficient in rice after a decade-long slump in production. These remarks came amid farmers' cries for help because of plunging prices due to imported and "semi-smuggled" rice. The Jakarta Post spoke about the issue recently with a professor of the Bogor Institute of Agriculture, Didin S. Damanhuri. A related article is also run on this page.

Question:Farmers are suffering from poor rice prices. If this is a disease, the conditions would be acute. What emergency treatments do you suggest the government take?

Answer: The necessary steps are clear. Firstly, stop rice imports. Secondly, control (the distribution) of imported rice that is already here. Next, take measures against illegal rice importers. Then, reallocate the windfall profit from oil prices to purchase the farmers' rice stocks regardless of their quality.

Then, at the regional level, provincial and regency administrations should cooperate with farmers association to build rice barns (so farmers can keep their stocks until prices are better). In this approach, farmers become subjects (of a process). They are given the options to think about how to raise the funds to build good barns.

The longer-term approach to take would be to revive the National Logistics Agency (Bulog) buffer stocks, in case the farmers stop producing. In the meantime, reform the central and regional logistics agencies -- something that Coordinating Minister of Economics Rizal Ramli has initiated but far from completed yet.

The regional and local logistics agencies must be pushed to purchase the farmers' rice stocks -- something that many logistics agencies have often refused to do because they did not have enough funds.

If the government has the political will to take care of the problem, and really allocate the windfall to help farmers and really clean the (rice production and trade), Insya Allah (God willing), the farmers can really be rescued.

What if those measures are not taken?

Don't forget, we are talking about millions of people here. What if disgruntled farmers organize themselves and revolt? It's a scary thought. Even now there are farmers in various organizations who have established their own organizations (out of frustration).

Evil as it was, the New Order regime was the time when farmers were made into success stories in the 80s -- even if agriculture remained merely a support staff for the pillar of industry.

This administration under Gus Dur (Abdurrahman Wahid) has not even tried to show any efforts (to accomplish the same feat). Instead, his administration is bailing out errant debtors who are mostly large corporations -- Gus Dur should be warned that he shouldn't let his administration become the second New Order (in terms of supporting big businesses at the expense of other segments in society). Those big debtors should just be declared bankrupt.

Gus Dur should instead develop agribusiness. Only then can we get on with our economic reform and correct past mistakes.

Let's go back a bit. What caused the rice prices to drop?

It's a complicated matter, but mostly it is caused by the imported rice influx. Speculators are having a field day, they are acting like Bulog in reverse, hoarding stocks for their own profiteering.

The second cause is simultaneous harvests in some places which led to an oversupply. And certainly there is the involvement of tengkulak (loan-sharks who buy crops from cash-strapped farmers at the early planting stage); they either collaborate with the "rice mafia" or play individually.

They distort prices, they manage to purchase rice for Rp 400/kg from the farmers. On top of that, farmers have to deal with imported and "illegally imported" rice. We should not let the "rice mafia" pile up further profits.

When Bulog was still an active agency, the farmers were relatively protected. (Following agreements with the IMF) the functions of the body were reduced drastically. What we have now is an irrational price decline. This is no longer the market forces at work.

How are we going to stop the speculators?

Bulog, the agriculture ministry, the trade and industry ministry, police and intelligence should all cooperate and fight them.

Certain circles know how the "rice mafia" operate. They manipulate documents for certain import procedures. They buy cheap rice from overseas, and hoard it in some warehouses rented illegally with the collaboration of some insiders. This mafia may involve people from within Bulog, the trade and industry ministry, the agriculture ministry and customs. Without such collusion, they would not have such a smooth operation.

I know for sure that at one time, when Bulog still had a substantial role, these people manipulated the import documents and increased import from 2.75 million tones to 3.4 million tones. Within a short period of time, they made a profit of an estimated Rp 2 trillion. We can imagine what a party they had when (former minister) Rahadi Ramelan liberated rice imports with a tax holiday.

Some parties are bound to resist should the government execute the emergency measures you are proposing.

I am sure there will be great resistance from many people who have so far been profiting from the situation. May be the coordinating minister dares should cooperate with the military, the intelligence and other agencies.

But if he really dares take these steps, people's trust in the government would return. That's what has been missing, the people's trust.

Of course the resistance would be great. But the people, and farmers who make up the majority of our population, would stand behind (Rizal). They are now increasingly aware of their rights. Surely they will support Rizal if he takes those steps.

Do you think the government will eventually engage in those steps?

Actually, I am now a bit pessimistic. I know they, Gus Dur, Rizal, can do that, but I am pessimistic they will do it. You know, I agree with (Musa Hubeis) who calls those who profiteer from farmers as traitors. They are traitors.

But we understand how sensitive this matter is. Rice is a sensitive matter. Some people can provoke unrest using the issue of rice. They can manipulate sentiments in such a way that leads to separatism, that leads to disintegration. Provocateurs can have a field day exploiting the issue of rice.

We all know there are many businesspeople who, during the New Order regime, made trillions of rupiah from (exploiting) rice prices, and surely they would resist any effort to stop this situation. They would still want to retain (the conditions that enable them to make large profits).

Now if our farmers do not trust the government, do not believe in the steps that the government is taking, I am really worried about what might happen.

Indonesia will need a paradigm shift if it wishes to turn agribusiness into the mainstay of its industry. Do you think the current administration is working toward that?

Gus Dur's inclination toward shifting the national industry paradigm is zero. Even Rizal Ramli's ten-step plan of action is still far from introducing that shift. His programs on farming, research and development, for instance, barely touch on the need for a paradigm shift. This is despite the importance of having one. Our entry point would be the rice farmers.

Is there anyone you hoped would initiate the paradigm shift?

Rizal should be the one. I know him well, we studied together. He should be bold and take radical actions. So far, he is only spoiling big businesses through the MSAA, despite the fact that they are obviously so uncooperative. (swe)