Indonesian govt tightens checks on subsidized rice after fraud cases

Jakarta (ANTARA) - Indonesia's National Food Agency (Bapanas) and the National Police Food Task Force have agreed to tighten oversight of subsidized rice distribution to prevent further abuses.

The move follows cases in which rice under the Food Supply and Price Stabilization (SPHP) program was removed from its original packaging, repackaged and sold at higher prices, Bapanas Deputy Hermawan said here Sunday.

Bapanas said its Rumah Pangan Kita (RPK) outlets were among the largest SPHP distribution channels. From March to September, they distributed 193,800 tons, or 23.42 percent, of 828,000 tons.

Under an additional allocation launched in October, RPK became the largest sales channel. By November 5, it had distributed 46,200 tons, or 29.78 percent, of 155,300 tons.

“The first allocation of 828,000 tons was fully distributed, but why are rice prices still high in many regions? We are concerned about continued irregularities,” Hermawan said.

He said he had written to National Police Food Task Force units nationwide, asking them to investigate Bulog's RPK partners and ensure subsidized rice was not diverted.

“An RPK is like a store. If its stock runs out within two or three days and it orders again, that is suspicious. Distribution may be improper; nothing can be hidden anymore,” he said.

He said the subsidized rice might not be reaching consumers but instead could be blended and resold as premium rice.

Bapanas and police have recently uncovered several cases of SPHP rice diversion. On October 28, East Jakarta police found 600 tons misused at two locations.

The rice was removed from its original packaging and repacked for sale at up to Rp17,000 (about US$0.94) per kg. Bapanas estimated state losses at Rp3.3 billion (about US$182,000).

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Translator: Harianto, Kenzu
Editor: Rahmad Nasution
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