Downstream Gambir Can Add IDR 980 Billion Foreign Exchange, Needs Transparency And Audit

Illustration of gambir farmers (ANTARA)

JAKARTA Minister of Agriculture Andi Amran Sulaiman made another big promise. After previously talking about the rice surplus to the dismantling of mixed rice, now it is the turn of the downstream West Sumatra gambir to be predicted to be able to boost the welfare of farmers.

Amran said that the price of gambir at the farmer level could increase from Rp. 60,000 to Rp. 70,000 per kilogram by building a processing plant.

The claim was immediately questioned by Indonesian Audit Watch (IAW). "This is a real step or just a surplus of words such as rice, corn, and food estate," said IAW's Founder Secretary, Iskandar Sitorus, Saturday, September 19.

West Sumatra is known as the world's largest producer of gambir, with a contribution of 80'90 percent of global supply. Two main areas, Limapuluh Kota and Pesisir Selatan, support foreign exchange of up to IDR 840 billion per year from raw exports. The potential for downstreaming can even increase the value to IDR 980 billion per year.

However, Iskandar assessed that conditions on the ground were far from the promise of the podium. Farmers often only receive Rp. 25,000 "Rp. 30,000 per kilogram because prices are controlled by the tengkulak. Weak institutions make farmers powerless to face large exporters, while infrastructure and quality certification are minimal so that products are difficult to penetrate the premium market.

"Farmers are still struggling alone, digging manual irrigation or keeping crops from failing. Meanwhile, the ministry is busy with a sparkling narrative," said Iskandar.

IAW also reminded that the potential downstream of gambir cannot be separated from the previous dark record of food management. Starting from the loss of IDR 1.2 trillion due to the purchase of unhulled rice above the HPP in 2015, the damage to 35 percent of rice stocks in 2018, warehouse costs swelled by IDR 2.8 trillion in 2021, to rice maladministration with a potential loss of IDR 7 trillion in 2024.

"The same pattern can occur if downstream investment is carried out without a thorough study, without a technical audit, and without transparency in distribution," he said.

According to IAW, downstreaming of gambir is indeed a golden opportunity. But success can only be achieved if the government dares to open data, conduct independent audits, announce farmers' prices regularly, strengthen farmers' institutions, and ensure strict supervision by BPK and the Ombudsman.

"The real surplus is not on the podium, but in the farmers' wallet and price stability in the people's market," concluded Iskandar.