INDEF: Investigate Postponement Of Garlic Import Approval By The Ministry Of Trade

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JAKARTA - Institute for Development of Economics and Finance (Indef) researcher Rusli Abdullah, asked for an investigation into the postponement of the issuance of the Garlic Import Approval (SPI) by the Indonesian Ministry of Trade (Kemendag). Rusli suspects that the postponement of the issuance of SPI for garlic is a mode to manipulate the price in the market which has an impact on people's needs.

"Investigate if there is intention to delay imports of garlic with the aim of raising prices," said Rusli in his statement, Sunday, October 4.

Currently, the price of garlic in the market has begun to climb, reaching IDR 35 thousand per kilogram. Meanwhile importers have complained that their Import Approval Letter (SPI) has not been issued by the Ministry of Trade.

Rusli stated that the government through the Ministry of Trade must immediately issue SPI for garlic in order to reduce prices in the market.

Meanwhile, according to public policy observer Agus Pambagyo, complaints from a number of importers about SPI are not new. because there are indications of "political costs".

"That's old news. If the importers who have to pay political fees have not been resolved, it will continue to do this until whenever. Just ask the Minister of Agriculture, he gave the recommendation. Then the one who gave the import permit was the Trade Minister, asked the Trade Minister. Ordinary, especially if it is ahead of the pilkada, elections. Politics is like that. If action is not taken it will continue to do so. If action is taken, there is no political cost, "he said.

Agus emphasized that this habit is very disruptive to the economy and violates regulations or a criminal act.

"It's just the same as a crime but allowed for up to 20 years. There's a fee from the importer, everyone knows that. For just 1 kilo 1 silver (rupiah), how much goes in?" he said.

He emphasized that imports can be done when the need is critical, especially garlic, including a commodity that must be imported and potentially many illegal goods.

"The message was 10 tons, 50 tons came. Ordinary, it's not strange. Especially if you want to get close to the local elections, close to the elections. Because the easiest political costs come from entering goods, everyone knows, not strange things," he said.

Agus emphasized that the import policy must have a clear measure. So is it true that we need to import, and in what quantity. Meanwhile, the Ministry of Agriculture can issue figures, then recommend it to the Ministry of Trade.

"For example, the Ministry of Agriculture has issued data on imports of garlic for western Indonesia, how many east, how many middle. So for example. According to policy regulations, there is no problem. It's just a matter of who imports, why a lot. Try to find who imports who, What is the relationship with the Trade Minister. That's easy. I'm not accusing, but that's how it is, "said Agus.

Director General of Foreign Trade of the Ministry of Trade, Didi Sumedi, explained that the currently circulating garlic stock is legal garlic. This statement also dismissed the suspicion of a number of parties who questioned the still circulation of garlic, amidst the absence of issuance of the SPI for garlic importers.

"That may be the stock that is still there, so that it can still meet domestic demand and can maintain a reasonable price," he said.

According to him, even though this is not sufficient, domestic demand is actually met by local garlic production.

"It really doesn't depend, Indonesia still has garlic production. Indeed, there is a shortage of supply on demand, we import. So, the government must be able to protect it too, so that if the flood of garlic imports the price will fall. As a result farmers have no incentive to produce. may happen, "he said.

However, Didi did not want to comment much on the unpublished SPI, which a number of importers complained about. He is also not sure when the SPI for importers can be issued.

"God willing, it will be published in the near future," he said.