Late Issuance Of Import Approval Letter, Garlic Prices Predicted To Rise

JAKARTA - Deputy Chairman of the Business Competition Supervisory Commission (KPPU) Guntur Saragih predicts that there will be an increase in the price of garlic in 2021. This is due to the slow process of issuing an Import Approval Letter (SPI) by the Ministry of Trade.

"Garlic will return to the KPPU's spotlight in early 2021. And we see the risk of price increases in (early) 2021. Because we see several things such as the issue of import permits which are still difficult," he said, in a webinar on Supervision of Onion Commodities. White, Friday, January 22.

The issuance of SPI, said Guntur, should have been done to support the acceleration of imports. So that it can avoid the scarcity of commodity stocks of garlic in the country.

"Because of course, after the import permit is late and has not been issued, it will end up risking a decrease in the supply (of garlic) in the market. In the end there will also be a risk of rising prices that must be borne by consumers," he explained.

KPPU, said Guntur, urged the government through the Ministry of Trade to be more sensitive to this potential price increase. Among other things, by accelerating the issuance of SPI for garlic commodities.

"To expedite the process of supplying garlic. So that people do not bear the burden of a high price in the midst of the COVID-19 pandemic conditions like now," he said.

Meanwhile, Deputy for Studies and Advocacy Taufik Ariyanto Arsad said that garlic is not included in the category of an important commodity ingredient regulated in Presidential Decree Number 71 of 2015 which has been amended to Presidential Regulation Number 59 of 2020.

"Garlic is not included. So the implication of this regulation is that there is no need for strict intervention from the government, especially in the form of an import trade system which has always involved the Ministry of Agriculture's RIPH, and the Ministry of Trade's SPI for the commodity of garlic," he explained.