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DPR Urges Immediate Clarity on Rice Import Demurrage Issues

Sunday, July 28, 2024 | July 28, 2024 WIB
DPR Urges Immediate Clarity on Rice Import Demurrage Issues



Langgam Pos - Bambang Purwanto, a member of the DPR's Commission IV, is calling for an expedited resolution to the alleged demurrage fines related to rice imports. The issue of demurrage has arisen due to delays caused by inadequate and incomplete import documentation, resulting in fines at various customs entry points.

As a representative of the people, Bambang emphasized the need for law enforcement agencies to investigate these demurrage issues. He suspects that the problem may stem from inefficiencies in the rice import process, which could potentially harm state finances.

"Imports are frequently conducted, so any inefficiency must be addressed," Bambang stated, as reported by Antara on Sunday (July 28, 2024).

In addition, Bambang has called for measures to address the rising rice prices observed in several regions to stabilize the cost of essential food items.

Jerry Massie, Executive Director of Political and Public Policy Studies (P3S), stressed the importance of accountability in rice import procurement to prevent demurrage problems. He noted that the suspected issues in rice procurement are due to a lack of accountability and transparency in the management of import processes, particularly from abroad.

"Be Vigilant: Rice Prices Surge, Distribution Needs Attention Amid Demurrage Concerns"

Economist Esther Sri Astuti has also urged for certainty regarding the smooth distribution of rice to maintain price stability. She emphasized that disruptions in distribution could lead to higher rice prices, adding that precise calculations of rice needs are essential to ensure adequate supply and prevent price hikes.

"As long as distribution issues are addressed, we can discuss price stability," stated Esther, Executive Director of the Institute for Development of Economics and Finance (INDEF).

Currently, rice prices have started to rise in July due to low production and limited stock during the dry season. This situation could contribute to increased inflation in the coming months. According to data from the National Food Agency (Bapanas) on Saturday (July 27), premium rice prices have reached Rp15,860, up 1.99% (Rp310), while medium rice prices are at Rp13,620, up 0.29% (Rp40).

The Ministry of Trade's Market and Essential Needs Monitoring System (SP2KP) has reported that rice price increases have occurred in 32.22% of regions in Indonesia during the third week of July 2024.

Epi Sulandari, Head of Operational Planning and Public Service Division at Perum Bulog, stated that one of the initial steps to stabilize rice prices is strengthening stockpiles. Perum Bulog has mobilized domestic rice supplies of 759,419 tons and 2.2 million tons of imports as of mid-July 2024. Most of these stocks are Government Rice Reserves (CBP), which can be used by local governments for food aid, price stabilization, and market operations.

"Preventing National Losses: Addressing Potential Corruption in Rice Imports"

Analyst Achmad Ismail highlighted the importance of closing loopholes to prevent fraud or corruption in rice imports to avoid national losses. He stressed the need for evaluations in rice import procurement to ensure compliance with governance standards and to prevent external and internal interests from interfering.

"The impacts of fraud through these channels must be addressed with improvements in governance systems and legal enforcement," Achmad said, as reported by Antara on Friday (July 26, 2024).

He noted that administrative gaps in the import process have led to additional fines due to delayed containers at ports (demurrage). Therefore, Achmad called for reforms in transparency, accountability, and corporate integrity to prevent future legal violations.

"The demurrage case indicates potential fraud or manipulation through administrative processes," Achmad added.

Public policy analyst Adib Miftahul previously called for a review of problematic rice import practices that could result in state losses. He stressed the importance of re-evaluating import mechanisms to address possible governance violations and to ensure that imports benefit all stakeholders fairly.

"Reviewing and addressing any potential import mafia is crucial," Adib, an academic from Universitas Islam Syekh Yusuf, noted. He also highlighted that timely and efficient rice import practices are essential, especially since imports are often timed close to harvest seasons, indicating systemic issues in the rice import governance.


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