February 2019 Coordinating Minister Darmin Ensures 30 Million Tons of Corn Imports

NasionalIndonesia. The government will reopen the maize import tap, mainly as animal feed, as many as 30 thousand tons in February 2019. The goal is for feed to be available for chickens, so as to reduce the price of eggs that have continued to rise since last year.

Based on data from the National Strategic Food Price Information Center (PIHPS) per day, the price of eggs is Rp.26,250 per kilogram (kg), or increases compared to the national average price of two months ago, Rp23,300 per kg.

In fact, the reference price of chicken eggs in consumers is at the level of Rp23 thousand per kg. This is stated in the Minister of Trade Regulation No. 96 of 2018 concerning the Reference Price for Purchases at the Farmer Level and the Reference Price for Sales at the Consumer Level.

"We have also added 30 thousand tons of corn again to enter the middle of February. Because if there are chicken eggs, the problem is corn (for animal feed)," said Coordinating Minister for Economic Affairs Darmin Nasution met at his office on Friday.

In addition to the problem of the price of eggs that have not dropped, the import decision was made because corn imports carried out by the government last year were considered to be less than fulfilling the needs of farmers. Moreover, the corn harvest will still take place in April.

He considers the supply of corn is still inadequate even though last year the government decided to import 100 thousand tons from Brazil and Argentina, where 70 thousand tons of corn have been entered in December and the remaining 30 thousand tons will come this month.

"The corn turned out to be lacking and we have imported it and it has entered 70 thousand tons until the end of December. The corn harvest is still in April," he added.

Later, he hopes that next month's corn imports can be distributed to all farmers, both small farmers and large farmers. Because, one evaluation of the implementation of yesterday's corn imports was a distribution problem.

At that time, the Logistics Company (Perum Bulog) Public Company was said to have only spread imported corn to small farmers.

"But we have said that it cannot. Now, sell corn to all. The goal is not just to help small farmers, but to reduce the price of corn. If the price of corn does not go down, even more, the price of eggs will remain high," he added.

Previously, corn imports were intended for independent farmers and sold according to the reference price set by the Ministry of Trade in the Minister of Trade Regulation No. 58 of 2018 concerning the Determination of Reference Prices at Farmers and Reference Sales Prices at Consumers. In the regulation, the reference price for selling corn to consumers is IDR 4,000 per kilogram (kg).

This corn import took place amid a production dilemma which is estimated to have a surplus until the end of last year. Based on data bagged by the Ministry of Agriculture, the projection of corn production until the end of 2018 reaches 30.4 million tons.

The projection consists of corn production on Java Island with 11.6 million tons and Outside Java with 18.4 million tons. Meanwhile, national consumption only reaches 18 million tons. That is, there is a production surplus of 12.4 million tons.

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