Entrepreneurs found strong indications of cartel trading played by
garlic importers making garlic price in the country to touch its highest record
during history, at least sixfold of the normal price. Garlic price has been
skyrocketing since November last year from its normal price ranging between Rp.
10,000 and Rp. 15,000 per kg. Garlic price in the local market in Java was
currently at Rp. 60,000 – 85,000/kg. They controlled is there are hundreds of
garlic containers at Tanjung Perak Port, Surabaya not completed with Import
Approval (SPI) and Horticulture Import Recommendation (RIPH).
Suryo Bambang Sulisto, General Chairman of Indonesian Chamber of
Commerce and Industry (Kadin Indonesia), in Jakarta, Tuesday [3/19], assumed
that the increase in price of shallots and garlic was due to cartel trading
committed by importer companies. There companies control more that 50% of
garlic market segment in the country. Suryo said that the cartel practice
should be handled quickly and properly by the Government. This is to prevent
losses incurred by the public. “We urged the Government to take firm action
against cartel practitioners”, Suryo said.
In addition, the government should also restructure system of onion
commerce for the interest of the public at large. Suryo mentioned that there
were at least three points proposed by Kadin Indonesia to handle onion crisis.
The first step is to ask the National Logistics Agency (Perum Bulog) to
takeover garlic commerce which must be accompanied with increase of supervision
on Perum Bulog. The second action is to ease credit or loan disbursement to
garlic farmers so that garlic farmers will not be cheated by middlemen and
cartel traders. The third is to immediately issue a properly structured policy
on garlic import.
On the other hand, Suryo believed that this important policy does not
mean allowing garlic import as maximally as possible so it could kill garlic
farmers. Import policy will be implemented whenever necessary, like recently
when the garlic market is controlled by cartel traders who retain garlic
distribution. With a properly structured import policy, attempts of cartel
traders to eliminate garlic from market can be prevented and price will not
fluctuate.
Report of the Business Competition Supervisory Commission (KKPU) stated
that there were at least 531 garlic containers from China which had not been
released so that onion supply was scared. From 531 containers, 109 containers
had been declared free from customs problem and should be soon released to the
domestic market. Hundreds of tons of garlic were intentionally unhandled, while
to consumers, garlic and shallots were becoming scarce and their prices were
skyrocketing.
Importers who committed cartel trading were coordinated by one party. If
within 60 days there is no settlement, the goods will be processed by the
state. He asked the President to shorten the time to speed up settlement. He
also expected that those who know how to determine quota on onion import and
its distribution in the country to solve this cartel problem. (E)
Business News - March 22,2013
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