Jakarta – Indonesia plans to issue a new law to crack down on rampant smuggling which has hit commodity prices, Trade Minister Mari Pangestu said yesterday.

The smuggling of staples such as sugar and rice through Indonesian ports has reached alarming levels, occasionally forcing local prices below the farm gate price. "There is a draft smuggling law proposal so that we can have a legal framework at least," Dr Pangestu said.

Data from various associations shows that hundreds of thousands of tonnes of sugar and more than one million tonnes of rice have been smuggled so far this year. "There is no law that allows you to capture these smugglers ... because it's not clear what [constitutes] the smuggling," Dr Pangestu said.

In the short term, she said, the ministry would seek to reduce incentives for smugglers by reviewing import and export regulations. Currently, Indonesia bans rice imports all year round and limits sugar imports.