Presidential Instruction No. 1/2008 on rice policy

1A RICE POUCY (Presidential Instruction Number 1 Year 2008, dated April 22, 200B) lHE PRESIDENTOFREPUBUC OFINDONESIA, COnsidering: a. that In order of preservmq JldliuJlcd ~J1UJflk:: stability, increasing farmers' income, enhancing fO<Xi secur~ anddeveloping ruraleconomy, it is necessary to stipu latea nationalricepolicy; b. that asa resultof national andglobaldevelopments in th@ food ssctor, particul;:trly in rire affairs, it is neces sary to adjust rice policy year 2007; c. that in relations to theabove mentioned matters, Presi dential Instruction regarding rice policy needs to be stipulated; In vieW of: Artide 4 sentence 1 of the Constitution of 1945 (BIVNumber71S2page6.t4A-23A); INSTRUCTS: 1. TheCoordinating Ministerfor Economy; 2. The Coordinating Ministerfor the People's Welfare; 3. The Ministerof HomeAffair; 4. The Minister of Agriculture; ~. me Ministeror rraoe: 6. The Minister of Rnance; 7. TheMinister of Industry; 8. The Ministerof Public Works; 9. The Ministerof Social Affairs; 10. The Mini5ter of Forestry; Business News 7687/7-11-2008 11. The Ministerof State-Owned Enterprises; 12. The State Ministerof NationalDevelopment Planning Board/Head of Bappenas; 13. TIle Head of National Land Affc::lirs Agency, 14. The Head of the Central BoardofStatistics~ 15. Governors; 16. Regents andMayors; Tn aanrdance with their respective tasks and func tions to observe the folklwing provisions: ARSf: Topushandfacilitate the useof certified superior paddyseed SECOND: TOPU5h and facllltatc the U5e of balanced fertil izerin paddy plantation THIRD: To push and fadlitate the reduction of post-har vest loss FOURlH: To prevent irriYd~ ria:: field from dec.rea:.;ing. AFTH: Tofacilitate landrehabilitation and regional refor estationof water catchmentareaaswellas rehabilitation of the main irrigation network: SIXTH: . SIXTH: Toapplydomestic purchasingpolicyto milled dry unhusked rice with the governmentpurr.hasing price as follows: 1. The purchasing price of domestic unhusked dry rice withwatercontentof 25% maximally andwaste 10% maximally i<; Rp2,200 (two !:hnll<;;:lnd and two hunrlrPd Rupiah) per kilogram at the farmer levelor Rp2.240 (two thousand andtwo hundred andforty Rupiah) per kilogram in mill. 2. The purchasing price of domestic unhusked dry rice WiUl Wdlt:l contenl of 14% maximally and Wtlste maxi mally3% isRp2,800 (two thousand andeighthundred Rupiah) perkilogram in mill, or Rp2.840 (two thousand and eight hundred and forty Rupiah) per kilogram in Bulog's warehouse. 3. The purchasing priceof domestic domestic unhusked dry ricewith water contentof maximally 1<:\%, broken 20% maximally, wa~ content maXimally 2% andhull ing degreeminimally 95% is Rplt.300 (forty thousand andthreehundred Rupiah) perkilogram inBulog's ware house. 4. The purchasing price of domestic unhusked dry rice othermanme qualilyasrefer red lo ill number 1, num ber 2, and number3 is stipulated a regulation of the Ministerof Agriculture. SEVENTH: 1. The purchase of unhusked dry riceby the government nationally isexecuted byPerum Bulog. 2.. \he purchase of ul'lhuskOOdry rice by th@ GovPrnmj:>nt in region, is executed by Government Board or Busi ness Board in the food sector, besides Perum Bulag. Business News 7687/7-11-2008 2A EIGHT: 1. Stipulating the policy on supply anddistribution of sub sidiz.ed hulled ricefor the group of lowincome commu nitiesandfoodtroubledcommunities. 2. StlpuIatlng the poIk:yonsupplyand d!StJibutlon of hulled rice to mitigate forcemajeureanddisaster. 3. Distributionof thesubsidized hulledrice for the group of low incomeand food troubledcommunities as well as supplyand distribution of hulled rice to handlethe rorcemaJeure anddisaster IS executed by Perum Bulog. NINTH: Stipulating policy to preserve stability of domestic unhusked dry ricesupply: TENTH: 1. Supply of hulled ricefor the need of distributiond rice to 10\0\1 income communities, to overcome force majeure, andstabilize domesticriceprice supplyisexecuted by supplying the governmenthulled rice stodCS bY pnon tiZing to the hulledricesupplycoming from the buying fromdomestic fanner as regulated in SIXTH Dictum in this presidential instruction. 2. Management of Government Hulled rice stocks is ex ecuted by Perum Bulog. 3. Supply and management of hulledrice stocks by the Government at region are executed by Government Board or Business Board in the food sector, besides Perum Bulog. ElEVENTH: 1. Stipulating policyon exportand importof hulled rice in order to maintain the necessity of farmers and con sumers. 2.The ..... 2. The Importof rice as referred to number 1, shall be executed if the readiness of domestic ricestock does notfulfill theGovernment HUlled ricestocks, andor to maintain the domestiC pricestabiUty. 3. The export of rice as referred to in number I, sflalt De executedIf the readiness of domestic hUlled riCE! has bI!en fulfilied, c:ontT'OI'ed, andthe Importdoes notens.. Ubthe domestic price stablIIty. TWELVET1i; Stipulating supporting policy needed forensuring the effectiveimplementation of rIcepolicy. lHIRTEENlH: The Coordinating Minister for Economy shall co ordinate the planning, implementation andevaluation of the imptementation of ria! policy. BusinessNews7687/7-11-2008 ]A FOURTEENTI-I: All provisions regarding stipulating the purchasing price of domestic rice by the Government, which haveex ISted betore this pre5iOennallnstruttlOn is issued shall be declared nuff andvoid. This presidential instnJction sha. takeeffect on the pubUshed date. lssuedinJakarta OnApril 22, 2008 THE PRESIDENTOFREPUBi.1C Of lNOONESIA, sgd. DR. H. SUSILO BAMBANG YUDHQYQNO =:;=(M)=:.== 3. Regulation .