Shares of Tiga Pilar Sejahtera Food (AISA), an Indonesian company that is engaged in food processing, rice processing and the palm oil business, dropped further 24.9% this morning to Rp905 a piece, after falling 24.92% on Friday last week to Rp1205. This huge loss followed after the raid and sealing of a factory owned by Indo Beras Unggul, a subsidiary of AISA. On Thursday evening (July 20) Indonesia’s Food Task Force sealed the rice factory that is owned by the subsidiary of AISA, following allegations of fraud. Reportedly Indo Beras Unggul secretly replaced premium rice by the lower quality subsidized rice and sold it on the market as if it were premium rice. Indonesian police seized at least 1,161 tons of the firm’s rice at the Indo Beras Unggul plant in Bekasi (West Java). In the raid, Police Chief Tito Karnavian was accompanied by Indonesian Minister of Agriculture Amran Sulaiman and Business Competition Supervisory Commission (KPPU) Chairman Syarkawi Rauf.
