Indonesian farmers hit by cheap imports mull poll boycott

Kafil Yamin IPS

Sacks of rice paddy have piled up in the barn of Udung Supriatna, a rice farmer in Indramayu, West Java. Many of them have languished there for months.

"They are not supposed to be there anymore," he said. "They all should have been sold."

Usually, a rice trader from the nearby town would roll up in his big truck and buy Udung's product. He has not shown up since the last harvest three months ago, leaving Udung with an unwanted stockpile of seven tons.

In normal times, the rice would have fetched the equivalent of 570 US dollars at the government-mandated rate of 1,000 rupiah per kilogram.

Not that there are no other traders. Indeed, Udung and his neighbors have seen several but they have offered much lower prices.

"The traders said they used lower rates because big rice traders in town refuse to buy their rice. The big traders prefer to buy imported rice, which has hit the domestic market with low prices," said Suhadma, another peasant in the village. Like many Indonesians, Suhadma uses only one name.

That influx of cheap imported rice has rendered ineffective the government price controls on which farmers and consumers have long relied.

When times were lean on the farm, Udung and Suhadma would switch temporarily to blue-collar city jobs in construction or as pedicab drivers. But now, they said, foreign companies run most construction projects and jobs there are hard to find.

Suhadma said he has no idea how long the situation would continue but was sure things would become increasingly complicated for the farmers.

"Other jobs are hard to find. Big companies are reducing the number of their workers instead of increasing them, while our children's school fees, food, electricity bills and other daily needs cannot be postponed," he said..

Farm analysts tie the plight of the rice growers -- and of other farmers -- to economic liberalization measures introduced to comply with Asian and global free trade pacts.

But as the world's fourth most populous country gears up for its first multiparty direct presidential elections, the farmers blamed politicians, including incumbent President Megawati Soekarnoputri, and said they would not vote for any candidate.

"During her last presidential campaign, she promised very clearly that she would protect the people, side with people and make people-oriented policies. That's why I voted for her party," Suhadma said, referring to Megawati.

"I would say none of the promises became reality."

Suhadma and his fellow farmers have made a clear choice, he added: "We will vote for nobody."

Twenty-four parties are contesting general elections slated for June this year. Many expect the polls to be marred by violence and low voter turnout.

"People are disappointed, distrust and are even sick with dirty politicians who've been involved in various cases of money politics after they boasted that they would fight for the people," said Kurniawan Hari, an analyst at Gadjah Mada University, Yogyakarta.

"Skepticism and the apathetic attitude of people will mar Indonesian politics in 2004," he added.

Free trade agreements, including AFTA, signed by members of the Association of Southeast Asian Nations (ASEAN) and in force as of last year, have compelled the government to import agricultural products it previously bought from local farms.

The state also has had to break up monopolies enjoyed by government bodies including the National Logistics Agency (Bulog). Once the setter of rice prices, it now operates in the shadow of private traders.

"It was Bulog that set fixed prices for rice in an effort to protect farmers, but it was the very same institution that damaged the policy by importing rice," said Siswono Yudo Husodo, chairman of the Indonesian Farmers Association, known locally as the HKTI.

The government-run company will be powerless to resist further liberalization, Siswono added, as Indonesia gears up to implement by 2010 trade rules agreed with its Asia-Pacific Economic Cooperation forum trading partners.

"The globalization whirlwind will start crushing Indonesia this year, after it brought down important social, political and economic structures. Farmers will become the first victims," said Siswono.

Not only rice growers have felt the consequences.

Hundreds of small-scale chicken hatcheries in West Java were forced to close down during 2003 amid a flood of cheap imported chicken. More bankruptcies are expected this year.

Vast stretches of farmland in Ciwidey (West Java), Dieng (Central Java) and Purbolinggo (East Java), have been allowed to lie fallow. Children now use some of the plots to play football.

Sutisna Purba, a grower of red chilies in Ciwidey, said he has yet to come up with a long-term plan for his land and his family. For now, he can only watch as shoppers flock to new food stores.

"New supermarkets and malls with cool and comfortable environments are now here, close to our farm. They sell good quality vegetables, fruits and meat at very affordable prices. People who used to go to traditional markets, the places where our products are on sale, prefer to go to the supermarket," he said.

"Now the traditional markets are much more silent than ever," he added.

Sutisna said he understood why people favored the new retail venues. "It's prestigious for people to do shopping there. It's more convenient and nice too. And above all, it saves them money because prices are lower."

He added: "Of course we could not compete with big traders