Apart From Wilmar, KPPU Will Call Other Companies Regarding Alleged Farmers' Grain Monopoly

Illustration (Photo: Doc. Antara)

JAKARTA - The Business Competition Supervisory Commission (KPPU) has summoned rice producer PT Wilmar Padi Indonesia (WPI) to investigate allegations of monopoly on the price of grain for farmers.

KPPU chairman Afif Hasbullah said his party would ask for further information from other large-scale rice producers.

"We also (have) summoned one of the business actors (Wilmar Padi Indonesia). We ask for information from him regarding the recent increase in rice prices. I think after this, the KPPU will call again other business actors," he said when met at the DPR Building, Parliament Complex, written Thursday, September 14.

Furthermore, Afif admitted, he could not reveal the temporary suspicion that the cause of rice prices had risen significantly at this time.

"Not yet, still being investigated. We'll call another one first, we'll process the data," he explained.

Previously, PT Wilmar Padi Indonesia (WPI) denied monopilicizing the price of unhulled rice in Serang, Banten.

This subsidiary of Wimar Group admits that it only absorbs 2.5 percent of the total rice production in the Banten area.

This was conveyed by General Manager of the Integrated Industrial Estate, Wilmar Serang Tenang Sembiring in an official statement, written Wednesday, September 13.

From January to August 2023, said Tenang, the amount of grain for farmers absorbed by Wilmar Padi Indonesia only reached 69,800 tons.

Meanwhile, the production of unhulled rice in Banten is estimated at 1.5 million tons.

"Referring to this, the percentage of absorption of grain from our farmers is around 2.5 percent. So how can we monopolize and determine prices, while our suppliers also come from rice milling in this area," said Tenang.

Calm also explained that during August this year, the absorption of harvested dry grain (GKP) that Wilmar Serang could absorb was only 5 percent of the average production realization or around 200 tons per day.

Furthermore, Tenang also said that since the first week of August 2023, Wilmar Padi Indonesia has only absorbed 1,750 metric tons (MT) of unhulled rice.

"We will stop the rice supply because there is no more grain stock per day, there is only 350 MT in stock," he said.