TEMPO.CO, Jakarta - TEMPO’s investigative report on February 8, 2020, revealed a suspected graft in the garlic import permit issuing process at the Agriculture Ministry and the Trade Ministry. Apart from the alleged buying and selling of import permits, there are also allegations that the officials charged Rp2,000 (around US$0.14) for each kilogram of garlic imported, a practice that is believed to have contributed to garlic price surges like the public is experiencing right now.

Last August, the Indonesian Ombudsman began an investigation into maladministration following complaints from the Indonesian Garlic and Tuber Vegetable Entrepreneurs Association (Pusbarindo). This time, it was alleged that officials demanded commissions ranging from Rp3,000 to Rp4,500 (US$0.20 to US$0.30) per kilogram. “We hope the law enforcement authorities will take action as this practice reeks so much of corruption,” Ombudsman member Yeka Hendra Fatika told Tempo journalists on Thursday, October 26.

Yeka said the alleged grease money was to help speed up the process of obtaining the import authorization letter from the Trade Ministry. The Ombudsman’s assessment found that rent-seeking activities in garlic import can be eliminated if the government does away with the quota system so businesses do not have to fight over the quota and bribe the officials in the process. Excerpts of the interview:

Is it true that the garlic import bribe money has reached Rp4,500 per kilo?

Garlic business owners have problems with the Horticultural Product Import Recommendation (from the Agriculture Ministry) which is not backed by the Import Approval Letter (SPI) from the Trade Ministry. They have followed through with all the procedures and provided complete documents. Then they got information that to get SPI, they still must pay Rp3,000 to Rp4,500 per kilogram. They questioned the procedures.

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What is your answer?

Actually, the Trade Minister's Regulation regarding Import Policies and Regulations is quite clear. The SPI should be automatically issued five days after all the requirements have been fulfilled even without the signature of the director-general.

When did this information (about commissions) surface?

There were uproars over garlic prices last June to July. Pusbarindo asked me to be a speaker at a discussion forum. I said at the event, “Please report to the Ombudsman if you have problems.”

And they came and reported (about the commissions)?

No. Let’s be honest. There have been a lot of rumors about import permits being controlled by a businessman with close ties to the law enforcement authorities. So, I’m glad they didn’t come to make a report. We were not burdened. But, suddenly, at the end of August, I saw a yellow file on my desk. A yellow file signifies that a given complaint has met formal and material requirements and the Ombudsman has already discussed it at a plenary meeting. Then I asked my examiner assistant to follow it up. Does the complainant prefer to remain anonymous? Does the complainant understand the consequences? Because the ministries can easily trace the complainant and blacklist the company. There have been many incidents.

What did the Ombudsman do?

When we handled it in early September, I checked how many SPIs were left. SPIs for around 100,000 tons from 500,000 tons were still available. I immediately asked for an inspection letter because it was urgent. It would take three to four months if I went through a normal procedure.

Read the Full Interview in Tempo English Magazine