Garlic Import Regulation Prompts Monopoly

By Editorial Team 19/08/2019
Summary

The scandal allegedly involving the member of House of Representatives from the Indonesian Democratic Party of Struggle (PDI-P) I Nyoman Dhamantara for accepting bribery related to garlic import shows underlying problems in Indonesia’s food trade. The regulation imposed by the government has potentially caused an unhealthy competition such as monopoly practiced by several irresponsible, influential traders, and is susceptible to the ruler’s abuse.

The Business Competition Supervisory Commission (KPPU) is investigating the garlic import scheme, including the regulation issued by the Agriculture and Trade Ministry. Experts believe the law forcing the importers to self-produce the garlic is one of many sources of the problem. The lengthy waiting time to issue a Horticultural Product Import Recommendation (RIPH) from the Agriculture Ministry and import agreement letter (SPI) from the Trade Ministry allows several importers to dictate the garlic supply in the market.

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