The Agriculture Ministry has blacklisted five companies for reportedly importing small onions they claimed to be shallots.
The companies have been identified as PT TAU, PT SMA, PT KAS, PT FMP and PT JS.
Agriculture Minister Andi Sulaiman said in Jakarta over the weekend that their imports would seriously affect the interests of local famers.
“This is ironic. If we do not stop their actions by punishing them, such illegal activities could happen again,” said Amran as quoted by kontan.co.id.
Distributors sell small unions at around Rp 10,000 (71 US cents) per kilogram, while the price of shallots from local farmers are sold for around Rp 18,000 per kg. Therefore, the companies stood to make a profit of Rp 8,000 per kg.
Indonesia stopped the import of small onions in 2016 after the issuance of Ministerial Regulation No. 105/2017. The regulation prohibited the import of onions with a diameter of less than 5 centimeters.
The ministry has filed the case with the National Police's Criminal Investigation Department (Bareskrim). The ministry and police are also investigating five other companies for their alleged involvement in similar cases.
The supervising agency and certification agency will also be investigated because the imported goods should not have entered the market without their approval. (sau/bbn)
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