Import Rice: President said No Way, VP said No Problem

This is the latest conflict of opinion (and economic policy) between Indonesian president and vice president. This time on rice.

On his state visit to India, president Susilo Bambang Yudhoyono said the rice that already shipped from Vietnam should be kept away from Indonesian ports. But in Jakarta this morning VP Jusuf Kalla defended the policy saing it is just normal to import rice as government would not risk the national supply.

Yesterday, the house of representatives (DPR) decided to reject the import in a hearing with agriculture minister Anton Apriyantono. Most political parties rejected the policy and asked government to scrap the decision to import rice from Vietnam. Apriyantono also opposes the import.

Earlier this week, newspapers reported that minister of trade Mari Pangestu has decided to import about 70,000 tonnes of rice from Vietnam to ensure the national rice reserve. The decision was made following a rice deal between the two governments.

PT Bulog began importing rice from Vietnam despite some controversy over the Ministry of Trade's decision, made on Nov. 1, to temporarily lift the rice import ban, in order to avert a shortage and keep prices of the staple food affordable for the general public.
Bulog, the government's commodity regulator, will distribute the 68,900 tons of a total of 250,000 tons of imported rice to eight areas in the country, mostly outside of Java island, where there are potential shortages.

The Indonesian Farmers Association (HKTI) opposes the government's plan to permit the state logistics agency Bulog to import rice, HKTI chairman

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