Presidential Instruction No. 2/2005 on rice affairs policy

31A RICE AFFAIRS POLICY (Presidential Instruction No. 2/2005 dated March 2, 2005) THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering: a. that in the framework of increasing farmer income, enhancing food security and promoting rural economy, it is deemed necessary to stipulate a national rice policy; b. that in relation thereto, it is deemed necessary to set forth a presidential instruction on rice affairs policy; In view of: Article 4 paragraph (1) of the Constitution of 1945 (BN No. 7152 pages 14A - 23A); INSTRUCTS: 1. The Coordinating Minister for Economy; 2. The Minister of Agriculture; 3, The Minister of Finance; 4. The Minister of Trade; 5. The Minister of Industry; 6. The Minister of Public Work; 7. The Minister of Transportation; 8. The Minister of Home Affairs; 9. The Minister of Social Affairs; 10.The State Minister for Cooperatives and Small- and Medium-scale Businesses; 11.The State Minister for National Development/Head of the National Development Planning Board; 12.The State Minister for State-owned Enterprises; 13.The Head of the Central Board of Statistics; 14.The Head of the National Family Planning Coordinat ing Board; 15.The Head of the Investment Coordinating Board; 16.Governors; 17. Regents and Mayors To observe the following provisions: FIRST: To provide support for the increase in paddy pro ductivity/ quality of paddy and national paddy produc tion, including exploitation of land and water resources in the framework of raising farmer income. Business News 7'198/15-4-2005 SECOND: To provide support for diversification of economic activities of paddy farmers in the framework ofincreas ing farmer income. THIRD: To provide support of policy for the development of post-unhusked rice/rice harvest management to en hance the quality and reduce the lost output. FOURTH: To implement policy on the purchasing price by the government by observing the following guidelines: 1. The Domestic Purchasing Price of Harvested Dry Unhusked-Rice is Rp 1,330 (one thousand and three hundred thirty rupiahs) per kilogram in the milling site; 2. The Domestic Purchasing Price of Milled Dry Unhusked Rice is Rp 1,765 (one thousand and seven hundred sixty five rupiahs) per kilogram in the storage ware house or Rp 11740 (one thousand and seven hundred forty rupiahs) per kilogram in the milling site; 3. The Domestic Purchasing Price of Rice is Rp 2,790 (two thousand and seven hundred ninety rupiahs) per kilogram in the milling site; 4, Quality requirements for the purchasing price of har vested dry unhusked rice and milled unhusked dry rice as meant in points 1 and 2 are as follows: QUALITY REQUI- HARVESTED DRY MILLED DRY REMENTS FOR UNHUSKED RICE UNHUSKED RICE UNHUSKED RICE (GKP) (GKG) Maximum Water Content 25% 14 % Maximum Empty Granule/waste 10% 3% Maximum Yellow/ Spoiled Granule 3% 3% Maximum Green/ calcifying granule 10% 5% Maximum Red Granule 3% 3% 5. Quality ..... 5. Quality Requirements for the purchasing price of rice as meant in point 3 is as follows: COMPONENTS OF QUALITY UNIT QUALITY OF RICE Hulling degree (min) (6/o) 95 Water content (max) (%) 14 Head rice (min) (%) 78 Whole granule (min) (%) 35 Broken granule (max) (%) 20 Finely ground grain (max) (%) 2 Red granule (max) (%) 3 Yellow/spoiled granule (max) (%) 3 calcifying granule (max) (%) 3 Strange material (max) (%) 0.02 Unhusked granule (max) granule/ 100 gram 1 Mixture of other varieties (max) (%) 5 6. The purchase of unhusked rice by the government is executed nationally by Perum Bulog. 7. Besides Bulog, the purchase of unhusked rice in re gions also can be executed by government agencies or business entities operating in the food sector. FIFTH: 1. To provide and distribute subsidized rice to groups of poor communities and people vulnerable to food. 2. The procurement of rice for providing and distribut ing rice to the groups of poor communities and people vulnerable to food as meant in point 1 is done by prioritizing to the procurement of rice originating from unhusked rice of domestic farmers as regulated in Dictum FOl)RTH of this presidential instruction. Business News 7198/15-4-2005 32A SIXTH: L To provide and distribute rice to overcome the emer gency condition and maintain the stability of domes tic rice price through the management of government rice reserves. 2. The procurement of the government rice reserves as meant in point 1 is done by prioritizing to the pro curement of rice originating from unhusked rice of domestic farmers as regulated in Dictum FOURTH of this presidential instruction. SEVENTH: To stipulate the rice import and export policy in the framework of protecting interests of farmers and con sumers. EIGHTH: The Coordinating Minister for Economy coordi nates the planning, implementation and evaluation of performance of the implementation of this rice affairs policy. NINTH: With the issuance of this presidential instruction, · the stipulation of the floor purchasing price of unhusked rice and rice in the country by the government on the basis of Presidential Instruction No. 9/2002 on rice af fairs policy is declared null and void. This presidential instruction comes into force as from the date of issuance. Issued in Jakarta On March 2,2005 THE PRESIDENT OF THE REPUBUC OF INDONESIA Sgd Dr. H. SUSILO BAMBANG YUDHOYONO ===(AL)===