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Firm denies any wrongdoing in premium rice scandal
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Business Competition Supervisory Commission (KPPU) chairman Syarkawi Rauf (left), National Police chief Gen. Tito Karnavian (second left), Agriculture Minister Andi Amran Sulaiman (second right) and Trade Ministry secretary-general Karyanto hold packets of rice seized from a warehouse in Bekasi, West Java, owned by PT Indo Beras Unggul (IBU) on July 20. (Antara/Risky Andrianto)
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T Tiga Pilar Sejahtera, the parent company of PT Indo Beras Unggul (IBU), has denied any wrongdoing in the production of its premium rice despite a police investigation.
“We do not sell subsidized rice,” said PT Tiga Pilar Sejahtera financial coordinator Sjambiri Lioe in Jakarta on Tuesday as reported by tempo.co.
The company has been accused of passing off IR64 rice as premium rice.
PT IBU spokesman Jo Tjong Seng said rice of medium quality could be processed into premium rice.
Read also: Minister clarifies rice reports
Jo explained that the government subsidized farmers so that they could increase their productivity, while the company bought rice from any farmer whether they were subsidized or not.
Agriculture Minister Andi Amran Sulaiman said this year the government had allocated Rp 30 trillion (US$2.25 billion) for subsidized fertilizers and Rp 50 trillion to Rp 60 trillion for paddy seeds and tractor purchases for farmers. He added that farmers generally produced the IR64 paddy grain variety, which sold for about Rp 7,000 per kilogram.
National Police Criminal Investigation Department (Bareskrim) economic crimes chief Brig. Gen. Agung Setya said the company had bought unhusked paddy from farmers for Rp 4,900 per kilogram.
The company reportedly sold it as medium and premium rice under the Maknyuss and Cap Ayam Jago brands at Rp 13,700 and Rp 20,400 per kilogram, respectively. Meanwhile, the IR64 retail price set by the government is Rp 9,500 per kilogram. (bbn)
