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🇮🇩 Indonesia /Elections & Politics

Rice Mafia Cost Indonesian Public Rp 100 Trillion, Minister Says

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • Indonesia's Minister of Agriculture estimates that rice mafia practices have cost the public Rp 100 trillion.
  • He stated that 38 suspects are currently involved in the case of fraudulent rice sales.
  • The minister criticized the practice of selling fortified rice at prices significantly above the standard, comparing it to selling brass as gold.

Indonesian Minister of Agriculture Amran Sulaiman has revealed the staggering financial impact of rice mafia practices, estimating public losses at a colossal Rp 100 trillion.

The price should be Rp 8,000 per kilogram, but it's sold for Rp 17,000, and it's labeled premium. Do you think that's right or wrong? This is not a diversion. The substance is the total loss, not that Rp 2 trillion. It's all Rp 100 trillion in losses for the people, taking people's rights.

— Amran SulaimanThe Minister of Agriculture explained the scale of public losses due to rice mafia practices.

Sulaiman stated that the ongoing investigation has already identified 38 suspects involved in fraudulent rice sales. He clarified remarks made by the President regarding a rice milling company profiting up to Rp 2 trillion, explaining that this figure represents illicit gains from fraudulent activities, not legitimate business profits.

"The price should be Rp 8,000 per kilogram, but it's sold for Rp 17,000, and it's labeled premium. Do you think that's right or wrong? This is not a diversion," Sulaiman asserted during an event at Diponegoro University. He emphasized that the core issue is the total loss to the public, which amounts to Rp 100 trillion, representing the deprivation of people's rights.

So that's what Mr. President meant. Understand the substance? So the value of Rp 2 trillion is from one large group company. Because its milling capacity is 1,000 to 2,000 tons per day.

— Amran SulaimanSulaiman clarified the President's statement regarding a specific company's profits.

The minister further illustrated the extent of the price gouging, citing an example of fortified rice that should cost between Rp 12,000 and Rp 13,000 per kilogram but was being sold for Rp 42,000 – a difference of Rp 30,000. He expressed disbelief at such practices, likening it to selling brass as 24-karat gold.

Now there are already 38 suspects.

— Amran SulaimanThe minister confirmed the number of suspects in the rice fraud case.

When questioned by a dean at the university, Sulaiman lamented the persistent nature of these criminal activities, asking, "What do you think of this country? The mafia doesn't want to stop working." He declined to name the specific corporate groups involved, citing legal ethics as the reason while the case is under active prosecution.

Group, but it's not ethical for us to point fingers because it's a legal process.

— Amran SulaimanSulaiman explained why he could not name the companies involved in the rice fraud.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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