Return to sender
Return to sender
The Japanese people's disquiet about Indonesia's handling of
its rice aid is a classic example of the low opinion foreigners
have of the Indonesian government's integrity. They have good
reason to be apprehensive. After all, Indonesia is ranked among
the world's most corrupt nations by the Berlin-based corruption
watchdog Transparency International, and tops the list in Asia.
Even the Indonesian government itself places scant trust in its
own bureaucracy, exemplified by painfully slow disbursement of
billions of dollars of foreign aid intended for various social
safety net programs to help the poor.
The recent disclosure that a huge proportion of World Bank
funds in Indonesia was siphoned off by government officials is
only one more reason for anyone who has any dealings with
Indonesia to be suspicious. When that dealing is prompted by a
humanitarian calling, as in the case of the Japanese rice aid,
then donors have the right to demand transparency.
Japan's concern was prompted by news reports, subsequently
confirmed by the Indonesian government, that only a fraction of
the 550,000 metric tons of rice shipped from Japan has actually
been distributed. Most of it is languishing in government
warehouses. The news, played up by the Japanese media, raised
alarm about what will ultimately become of the donation and
prompted speculation about possible irregularities. It was
therefore natural for the Japanese government, which at the end
of the day must be accountable to its taxpayers, to demand
Indonesia set the record straight.
Tokyo's inquiries have been met, unfortunately, by responses
which are not only unsatisfactory, but at times have come across
as arrogant. They have done nothing to clear the mist of
confusion already blurred by Indonesia's shoddy image abroad.
Minister of Trade and Industry Rahardi Ramelan, who is also
chief of the State Logistics Agency (Bulog), contends the
Japanese rice is of a high grade the poor cannot afford. Or, put
in other words, the rice is too good for Indonesia's needy.
Witness that the government has been giving out grade three rice
-- the lowest quality -- in its aid package to the poor. The
Japanese rice is earmarked instead as part of Bulog's open market
operations to stabilize prices, to be sold at whatever price it
fetches.
Rahardi argued that releasing the Japanese rice in the market
at lower than market prices would undermine the market itself,
hurting local farmers who produce high quality rice and who would
suddenly be thrust into competition.
The minister no doubt irked the Japanese when he dismissively
stated Indonesia's use of the rice was its own business because
the rice was a loan that would have to be repaid (The rice aid is
an interest-free loan repayable in kind in 30 years). He vouched
for Bulog's long experience in the management of rice
distribution, sidestepping the ugly fact that it ranks
prominently among the many government agencies most notorious for
corruption, collusion and nepotism.
Rahardi's comments make plain economic sense and go some way
to explaining why the rice is still taking up space in government
warehouses. But it falls flat in countering the reasoning that
holding onto the rice contravenes the original intent of the
shipment, to help the needy in Indonesia. On this count, the
Japanese have every right to be upset as well as suspicious.
If we follow Rahardi's line of argument that the rice is too
good for his poor countrymen and women, and its distribution in
the market would pose serious competition for local farmers, then
there is only one way out of this dilemma which addresses the
problems of all concerned: Send the rice back to Japan, with a
fitting thank-you note. Keeping the rice in warehouses does
nobody any good; it could even get wet in the rainy season and
ferment into sake. Rahardi would really have his work cut out for
him in explaining that one.