The Indonesian Chamber of Commerce and Industry (Kadin) expects the government to prevent ijon transaction on some commodities in many regions, including paddy, rattan, and other as the transaction is unprofitable to farmers for a long-term. Ijon practices occur when farmers sell their plants directly before harvest to buyer. The would-be buyer gives an advanced payment. And, at harvest time, farmers must give the harvest to the buyer. Kadin attempted to prevent such practices. One of the attempts is by encouraging banks to open branches in the regions so that farmers could rely on credit facility, General Chairman of Kadin, Suryo Bambang Sulisto (SBS), told Business News.
Kadin also sees that ijon practices also occur on rattan farmers in some regions, including in Cirebon, Solo, Kalimantan, Sulawesi, and other. Many foreign buyers, including buyers from China, are actively seeking to buy rattan. As many of this commodity is used in China for making home appliances, including furniture. Due to ijon practices, local industry will be distorted as many of the rattan has been sold to foreign buyers.
Kadin cannot say that ijon practice is illegal. But, this is very situational meaning that farmers are frequently left with no choice. When they need money, there are lured by buyers who give them advanced payment.
Kadin also expects the government to review ministerial regulations concerning prohibition on rattan export. If there is an indication of overproduction, the government must revise the regulations. Moreover, there are many foreign consumers who have shifted to synthetic rattan. If they fail to obtain natural rattan, they shifted to the synthetic one. This condition distorts our farmers and the national economy.
The government must continuously protect the national industry in connection to expansion of work opportunity. If there is a overproduction, the government must revoke the policy on prohibition on rattan export.
Some observers consider that there is an unsynchronistic matter concerning prohibition on rattan export. The Industry Ministry is led by M.S. Hidayat who is former general chairman of Kadin. While, kadin under the chairmanship of SBS is contra export prohibition policy. But the fact is that the Industry Minister prohibits export, but Kadin disagrees on the policy, an observer whose name is unwilling to be mentioned, told Businees News.
If there is a intense and directed communication, this matter could be prevented. A former leader must be able to maintain the vision and mission of a large organization like Kadin. I have concern that there will no more populist policies in Kadin.