Ombudsman: There is a Potential for Maladministration

Name: Ombudsman: There is a Potential for Maladministration
Uploaded: 2021-03-25T03:34:38Z
Duration: 20 min 32 s
Description: Available indicators do not support the urgency to import one million tons of rice. Importing rice should be backed by strong reasoning because it affects tens of millions of rice farmer households.

Available indicators do not support the urgency to import one million tons of rice. Importing rice should be backed by strong reasoning because it affects tens of millions of rice farmer households.

KOMPAS TEAM

· 5 minutes read

JAKARTA, KOMPAS – The Ombudsman sees the potential for maladministration in the government’s decision to import one million tons rice this year. Available indicators, such as domestic production and prices, do not support the urgency for rice imports.

On another occasion, Trade Minister Muhammad Lutfi refused to comment on the Ombudsman’s result.

Ombudsman member Yeka Hendra Fatika explained in an press teleconference on Wednesday that Statistics Indonesia (BPS) projected a 3.08 million ton or 26.84 percent increase in rice production this year to 14.54 million tons, compared to production data between January and April last year at 11.46 million tons. The projected increase is due to increasing size of farmland, specifically from 3.84 million hectares to 4.86 million hectares.

Also read: Don\'t Make the Farmers Depressed

The assessment of rice stocks by retailers, households, hotels, restaurants and cafes suggests that the current stock is adequate. The assessment is reflected in rice price stability from 2018 to 2020. Therefore, the Ombudsman suspects for the potential of maladministration in the government’s decision making process over importation of one million tons of rice, Yeka said.

The potential maladministration are abuse of authority and procedural negligence.

Article 1 of Law No. 38/2008 concerning the Ombudsman defines maladministration as the breach of law, abuse of authority, as well as negligence of by public authority resulting in losses to society or an individual.

Also read: Farmers Expect Govt to Absorb unhulled Rice

“In the rice import case, the potential maladministration are abuse of authority and procedural negligence,” Yeka said.

Trade Minister Muhammad Lutfi refused to comment on the Ombudsman’s investigation result.”It is clear as I said during a meeting with the House of Representatives yesterday,” He said.

In a meeting with the House’s Commission VI, overseeing trade, investment, and industry policy, Lutfi explained that there was a report note presented at the cabinet meeting mentioning that the State Logistics Agency (Bulog) could import 500,000 tons of rice. The report note was made before Lutfi was appointed trade minister.

Also read: Rejection of Rice Imports Intensifies

The addition through import is needed because Bulog has stock shortage. During a meeting with the House’s Commission VI, Lutfi said Bulog’s rice stocks is below 500,000 tons this year. “This is my concern. With only 500,000 tons of rice in stocks, the government can cornered down speculative traders. Besides that, [Bulog’s] rice absorption has not went well, making our stocks low. Nevertheless, I promise no imports of rice during the harvest season,” Lutfi told House members.

The import plan will be confirmed by Economic Coordinating Minister Airlangga Hartarto in a work meeting with the Trade Minister on April 3. The government has decided to import 500,000 tons of rice to refill the government’s rice stocks as well as another 500,000 tons for Bulog. The addition is necessary to strengthen the government iron stocks targeted within the range of 1 million to 1.5 million tons.

Investigation

Yeka explained that the ombudsman is focusing on the procedure of a limited cabinet meeting led by Airlangga. The decision to import rice should be made based on available data as well as strong reasoning. It is because the decision will directly affected tens of millions of rice farmer household across Indonesia. After all, their livelihood depends on rice farming.

In regard with this matter, the Ombudsman demands the Office of Coordinating Economic Minister to hold a meeting to delay rice imports. Decision to import rice should be made after the harvest season ended, and Bulog finished its rice absorption duty.

Ombudsman also demanded Bulog to optimize domestic rice absorption, stopping the fall in grain price at farmgate. The height of the harvest season is predicted to occur between March and April, which become momentum to absorb domestic rice production. In next week, the Ombudsman will collect information from related institutions as well as conducting on-the-ground check to confirm available data.

Bulog spokesperson Awaludin Iqbal expressed the company’s support on Ombudsman’s investigation on the government’s plan to import rice. Bulog will cooperate with the investigation.

I hope that this investigation results in cancelation of the plan to import rice.

The Bogor Institute of Agriculture Professor Dwi Andreas Santosa, who also a chairman of Indonesia Seed Bank and Agricultural Technology Association (AB2TI), appreciated Ombudsman’s investigation on rice import decision. It is because the decision would result in losses for both the country in general and farmers in particular.

“I hope that this investigation results in cancelation of the plan to import rice and improved transparency in the decision-making process for importing rice,” Dwi said.

Meanwhile, opposition to the government’s plan to import rice has been sounded by many locals, particularly rice farmers.