Indonesian farmers hit by cheap imports mull poll boycott
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