Friday, April 26, 2024 | 12:59 WIB

THE POLITICS OF RICE
A collusion that impact Indonesia’s economy

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ricefield
(IO/Muhammad Hidayat)

The dream of achieving food independence and sovereignty as mandated by Law 18/2012 has become increasingly hazy. Its implementation has become unclear with the establishment of National Food Agency (Bapanas) as a food regulator which reports directly to the President based on Presidential Decree 66/2021 and the role of Bulog as the operator. Amid the rice import controversy and despite the 1.7 million tons of rice surplus based on the Agriculture Ministry’s data, there has been an increase in the price of rice and other essential commodities since January. And the role of Bapanas and Bulog is even more daunting, with the existence of a powerful “food mafia” as alleged by Bulog chairman Budi Waseso. 

Didin S
Didin S Damanhuri holds a bachelor’s degree in Development Economics from Padjajaran University (Unpad), Bandung, graduating in 1978. He then completed his master’s degree in Agricultural Economics from Bogor Agricultural University (IPB) in 1983, followed by master’s degree in Development Economics in 1988 and doctorate degree in Political Economy from the Institute de Recherche Economique de la Planification et du Development (IREPD), France, in 1993. He has been a tenured professor at IPB since 2000. He is one of the founders of the Institute for Development Economic & Finance (INDEF), a Jakarta-based independent think tank. He was CIDES’s Politics-Economics Department Head (1997-98), UNDP-Bappenas consultant (1995- 97), LKEN chairman (2015-present), Brain Society Center expert council chairman (2020-present). In the Government, he used to serve as the expert staff to manpower and transmigration minister (2000-01), then its research and development head (2001-06), as well as expert staff for economy at the National Resilience Institute (Lemhannas) (2007-present). He has extensive experience as an activist, academic and researcher. He is also a prolific author whose works are widely published in the media and scientific journals.

Workable solutions 

First, theoretically, we already have Law 18/2012 on food independence and sovereignty. This law actually provides a very strong footing. It stipulates the separate role of Bapanas and Bulog. Bapanas is tasked with formulating a grand design and road map for how to achieve food independence and sovereignty. Meanwhile, Bulog should be revitalized, so that its budget and functions can be restored to the way they used to be, in the New Order era. Its infrastructure and financing should also be strengthened, including through digitization and algorithm-based Big Data, so it can identify rice production trends, global food prices, rice prices in the regions as well as fingering food oligopolization and cartelization activities. Third, the Business Competition Supervisory Commission (KPPU) should be upgraded to become an independent state agency similar to the Corruption Eradication Commission (KPK), including the authority to conduct wiretapping so it can collaborate with Bulog in preventing and enforcing law against food cartels. 

With these three steps, it is hoped that Indonesia can achieve food self-sufficiency and sovereignty so it can end the persistent challenges inherent in the Indonesian rice supply chain. These problems are often compounded near major political agenda such as the elections. Also, it will help wean Indonesia off food imports. If fundamental reforms are not yet feasible, at least these three steps can start the ball rolling. (Didin S Damanhuri)

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