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Indonesian rice executive arrested over mislabeling scandal

Govt steps up fight against alleged food cartel to control inflation

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Police seal off an Indo Beras rice warehouse in Bekasi, West Java Province, on July 20.   © Reuters

JAKARTA -- The head of a subsidiary of Tiga Pilar Sejahtera Food has been arrested over mislabeling accusations that have sent the Indonesian company's shares tumbling in recent weeks.

The unit, rice producer Indo Beras Unggul, allegedly sold low-grade rice under premium labels -- and thus at inflated prices. Trisnawan Widodo, the president of the subsidiary, has been named a suspect over his role in the scandal.

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