Jakarta – The World Bank yesterday expressed opposition to a reported Indonesian plan to raise rice import tariffs, saying such a move would contradict the government's stated "pro-poor" policy.

"From the poverty point of view, we are concerned about recent press reports suggesting import controls or higher tariffs may be reimposed on rice," said the bank's Indonesia director, Mr Mark Baird. Mr Baird told a seminar in Jakarta that the decline in rice prices currently enjoyed by the poor had been supported by access to cheaper rice in the world market.

On the government's plan to increase the floor price of unhusked rice, he said: "We also remain unconvinced that a higher floor price ... is justified given current budget constraint." Mr Baird said the poor in Indonesia spent about 25 per cent of their income on rice and, therefore, "lower prices are definitely in line with the pro-poor policy".

Several ministers have been quoted as saying recently that higher tariffs on imported rice, soya beans, eggs and chicken would help Indonesian farmers.