Indonesian Political, Business & Finance News

Rini to regulate rice imports

| Source: JP

Rini to regulate rice imports

The Jakarta Post, Jakarta

Minister of Industry and Trade Rini M.S. Soewandi is planning to
regulate rice imports in a bid to avoid a domestic oversupply
amid the current harvest season.

Under the plan, rice imports can only enter the country
through designated seaports.

Rini disclosed the plan during a hearing session with the
House of Representatives Commission V on industry and trade
affairs late last week.

She said that one of the options being considered was to limit
rice imports only in non-producing areas.

"We are now in talks with relevant officials," she told
lawmakers.

Currently, rice can enter the country via any seaport.

The price of unhusked rice has dropped to around Rp 800 per
kilogram recently, compared to the government's target of Rp
1,095 per kg. Many said that the drop was mainly due to the
influx of cheaper imported rice.

As the harvest season has begun, the fall in price would hurt
the income of local farmers.

There have been growing calls for the government to take
immediate steps, including demands for a temporary ban on rice
imports, to protect local farmers.

While Rini was against such move previously, she now says that
a temporary ban could also be considered as an option, if the
supply from local farmers could meet domestic demand.

The country's rice output is expected to reach about 32
million tons.

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