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Competition watchdog to expand questioning of rice millers

Yohana Belinda (The Jakarta Post)
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Jakarta
Thu, September 14, 2023

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Competition watchdog to expand questioning of rice millers People cram into a Ramadan bazaar organized by the Mudung Laut administration in Jambi on April 4, 2023. Basic commodities were offered below market prices. (Antara/Wahdi Septiawan)

T

he Business Competition Supervisory Commission (KPPU) has said it will expand its questioning of rice millers in relation to allegations of anticompetitive practices after speaking to a top industry player.

KPPU head Afif Hasbullah told reporters on Wednesday that the agency would continue investigating the pricing decisions and market share of large-scale rice millers.

So far, he said, the agency had questioned Wilmar Padi Indonesia, the local rice milling arm of Wilmar International.

“After this, the KPPU will contact other business stakeholders. There will indeed be more. We will contact others later, but first, we will process the data,” Afif said.

The local Ombudsman made similar inquiries into Wilmar Padi and visited the company’s milling facility on Aug. 30.

According to the National Food Agency (NFA), the price of dry unmilled rice (GKP) has risen to between Rp 6,700 and 7,000 per kilogram, far exceeding the government-set purchase price of Rp 5,000 per kg, which was revised up in March from Rp 4,200 per kg.

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Medium-quality rice was priced at an average of Rp 12,070 per kg in August, up more than 12 percent from the same period last year, NFA data shows.

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