| As
the sun set on Blora, a peaceful town in Central Java, one day in December,
groups of people with iron rods, blades and machetes walked slowly toward
the heart of town. Soon, a cry was heard from someone in the group: "Go!
Get them!" The mob abruptly began ransacking shops along the road.
At first, they only broke into shops
selling fertilizers -- which have gone into short supply among farmers
following this month's removal of government subsidies -- and seized them.
Failing to find enough fertilizer
stocked there, the outraged mobs began destroying the shops. What happened
next has become a main feature of Indonesia today -- an orgy of looting,
arson, car burning coupled with bloody clashes with security forces. At
least six people were heavily injured and dozens of shops and vehicles
damaged on the night of December 7, in that quiet town some 30 km from
Semarang, the capital of Central Java.
Also due to the scarcity of fertilizers,
hundreds of farmers from Djati sub-district rioted the day after, damaging
several kiosks and shops belonging to village cooperatives.
This violence is the price of the
Indonesian Government's decision to remove long-time subsidies on fertilizers,
following reforms carried under the International Monetary Fund's programme.
The announcement of the end of subsidies had caused fertilizers to disappear
from the market and their prices to soar, with effects that experts say
bode poverty, food insecurity and more instability in the rural areas in
the coming year.
Already, the lack of fertilizer due
mainly to distribution problems is making some farmers give up on rice
cultivation, with risky implications for food production in the world's
fourth most populous country.
As it is, a recent Crop and Food
Supply Assessment by the Food and Agriculture Organization of the United
Nations (FAO) and the World Food Programme sees deteriorating food security
starting the middle of 1999 due to failed harvests and production falls.
Months earlier, food ministry officials already called the food situation
"critical", saying 60 per cent of 7.3 million poor families in Central
and East Java could have only one meal daily.
At the same time, unemployment continued
to rise and could hit 12 per cent by yearend. Poor Indonesians now number
100 million or nearly half of the country's population. ?We should be prepared
for the worst,? Mohammad Prakoso, FAO Programme Officer in Jakarta, said
in an interview with Inter Press Service (IPS).
FAO forecasted the 1998 rice output
at 45.3 million tons. Another 5.14 tons would be required to meet the demand
of some 50 tons per year. "So, Indonesia will still need international
assistance for its food security," Prakoso told IPS. Indonesia has had
to import rice recently, despite the fact that it had achieved self-sufficiency
in the staple, years ago.
The fertilizer subsidy was scrapped
on 1 December 1998, marking the end of government control on the commodity.
Jakarta also increased the basic price of unhusked rice by 40 to 50 per
cent and stepped up credit allocation for rice to compensate for the subsidy's
removal.
The end of government control on
fertilizers means private businesses can now import on their own, and distribute
the commodity to farmers. With an eye on better profits, some fertilizer
traders have turned to hoarding and selling to overseas buyers instead.
To many, the anger this has stoked among farmers is understandable. "It
is a good planting season. Rainfall has been good. They have the money
to buy fertilizer, while rice shortage is alarming. But they cannot find
fertilizers," said Haji Abdul Mutolib, leader of Ciasem farmer group.
Latest official reports say some
50 per cent of available fertilizer supplies is not reaching the farmers.
"Where did it go? Large part of the fertilizers go to the plantation sector,
which is willing to purchase it at a much higher price. Another portion
was sold overseas at very lucrative prices," said Agriculture Minister
Soleh Solahuddin.
"The subsidy removal has caused price
disparities in the market. And its logic is that distributors prefer to
sell fertilizers to those who offer good prices," he added.
Fertilizer production is sufficient
to meet local demand. Urea production during January-September 1998 stood
at 4.5 tons, more than enough to meet local demand of 2.9 tons. An executive
with PT Petrokimia Gresik, one of the country's largest fertilizer producers,
says it exported its produce to Japan because "if we sell our products
only to the local market, we would be unable to gain enough margin for
financing our operation".
Distributors have more practical
considerations -- good margins. "Local farmers buy our stuff at 60 dollars
per ton. Our buyers in Malaysia purchase them at 120 dollars per ton. You
ask me which buyer do I prefer?" said a distributor in Sumenep subdistrict
of Madura, East Java.
If this skewed market situation continues,
Indonesia may see worsening rice shortages in the next harvest season.
Matasim, a 33-year-old farmer in
Sumenep, has left his 15-hectare paddy field unattended. "There is no use
to do anything," he said. "Without fertilizers, there will be no harvest.
Disease will easily attack our paddy plants." Thousands of Sumenep paddy
farmers have followed Matasim's lead. In Subang regency, West Java, 35
paddy farmers who till some 51 hectares of paddy field decided to just
let their paddy grow wild. In South Sulawesi, South Kalimantan and other
provinces, farmers stopped working in rice fields for the same reason.
The uncertain food situation means
more political turmoil and restiveness. "You cannot expect starving people
to live orderly and respect norms and law," said Lt. Gen. Susilo Banbang
Yudhoyono, the military's territorial chief of staff.
But most worrisome is the longer-time
damage that the crisis, and problems such as food shortages, can do to
Indonesia's young. The health department said that since the middle of
1998, 1.8 million of 20 million newborn babies suffer from serious malnutrition.
"I can't stand to imagine seeing our future generation as dwarfs and idiots,"
said Azrul Anwar, director of the public health division of the health
ministry. |