Sunday, 10 May 2009

Rice Export Hindranced by Bureaucracy

Ever since the Government gave opportunities to the private sector to export premium quality rice, without involving the Board of Logistics [BULOG] it did not make any easier in terms of export permit procedures. Rice traders complained on the lengthy procedures of bureaucracy to obtain recommendations for rice exporting from the Ministry of Agriculture.
Suherman Dinata, President Director of PT Alam Makmur Sembada [AMS] disclosed to Business News in Jakarta Monday [20/4] questioning the export plan of rice by the private sector.
PT AMS and other companies formerly were combined with Prum BULOG to export rice, after which the Government gave chance to private companies to export rice by only obtaining permit and recommendation from the Department of Agriculture, by passing BULOG.
In reality the Government’s policy failed to speed up bureaucratic procedures, what happened was exactly the reverse : rice export got stocked. And yet the exporting company which were located at Lemah Abang, Bekasi had already prepared export-bound stocks of rice as much as 15.000 tons. Moreover, PT AMS already signed contracts with their counterparts aboard.
If the Government really intended to drive the private sector to export rice, the bureaucracy should ease procedures instead of making things difficult the way it happened now.
Because the recommendation of the Department of Agriculture never came up, PT AMS up till now was in no condition to export rice. Even the buyers aboard frequently inquired the plan of rice exporting “I came to visit the office of the Department of Agriculture to inquire about the plan to export rice, but up till now nothing can be realized”.

Director General of Processing and Marketing of Agricultural Yields [P2HP] : verification of rice stock necessary

Zaenal Bachruddin, Director General of processing and Marketing of Agricultural yields [P2HP] disclosed to Business News in Jakarta Monday [20/4] admitted that there were already 11 applicants requesting recommendations for rice exporting, but up till now not a single permit had been issued by the Government.
In order to issue export permit for rice, in was necessary for the Government to make verifications of the exporting company, not just about the status of company but also the readiness of rice stock to be sent aboard. The verification procedure was to be exercised by the Department of Trade and PT Succofindo.
Although not a single company had obtained any permit, the Government was confident that the export plan could be realized this year “We expect that the export plan can be realized before the maximum time limit, which is next June”.
Budi Gardjita, the Director of Domestic Trading, Department of Agriculture stated that the verification process on the private companies were well underway. But up till now the volume of rice applied by the private companies amounted to only 80.000 tons, while the quota given by the Government was 100.000 tons. “We are still waiting for the remaining quota for 2009 as much as 20.000 tons”.
According to Business News data there were at least 11 private companies who joined BULOG in exporting rice, consisting of 9 rice suppliers namely: PT Padi Unggul Indonesia, PT Alam Makmur Sembada, PT Bangun Citra Mandiri Tama, PT Jatisari Rejeki, PT Gentrade, PT Pertani, PT Jayamas, Insan Sentosa Prima and PT SInar Balango Prima. Additionally there were 2 suppliers of organic rice namely PT Makrifat Mulya Perkasa and PT Bloom Agro.From the buyer’s side, there were 7 companies who were ready to buy Indonesian rice of fragrant and organic types, i.e. Seacor Commodity Trading LCC, PT Maubeni, PT Indoboga Jaya Makmur, Olam International, Louis Dreyfus Commodities, Nisia Interlinkage, and PT Prava International.

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