Bulog chief 'chosen with mission to create profit'<\/p>\n
JAKARTA (JP): Coordinating Minister for the Economy Rizal
\nRamli said on Friday that a new chief for the strategic National
\nLogistics Agency (Bulog) had been chosen, and would be installed
\nby Vice President Megawati Sukarnoputri in the near future.<\/p>\n
Rizal declined to disclose the name, saying that the
\ngovernment was still looking for the \"proper time\" for the
\nofficial inauguration.<\/p>\n
\"We already have (selected) the person. We're still looking
\nfor the proper time for Megawati to install (the new chief)\", he
\ntold reporters at his office.<\/p>\n
Rizal currently holds the Bulog chief position, which he
\nassumed early last year before being appointed as the chief
\neconomic minister.<\/p>\n
Rizal said that one of the important objectives of the new
\nBulog chief would be to continue the transformation process of
\nthe agency to become a semi profit-oriented state-owned company
\nthis year.<\/p>\n
\"We expect the new Bulog chief to be able to continue the
\nreform process as well as achieve price stabilization (of
\nunhusked rice)\", he said.<\/p>\n
\"We have been making preparations to change the status of
\nBulog to become a Perum,\" he said, referring to the local term
\nfor state-owned company with both commercial activities as well
\nas a social mission.<\/p>\n
Founded in the late 1960s, Bulog is not only responsible for
\nthe price stabilization of rice.<\/p>\n
Initially, the agency also held a monopoly in the importation
\nof wheat, sugar, soybeans and several other basic commodities.
\nHowever, this exclusive role was terminated in early 1998
\nfollowing demand from the International Monetary Fund, which
\norganized a multi billion dollar bailout loan for the country.<\/p>\n
Bulog was treated in the past as the cash cow of the family
\nand cronies of the former authoritarian president Soeharto.<\/p>\n
Independent auditor Arthur Anderson revealed last year that
\nBulog lost Rp 6.7 trillion (US$705 million) between April 1993
\nand March 1998, due to unfavorable business contracts,
\nirregularities and weak supervision.<\/p>\n
Even President Abdurrahman Wahid is currently under attack
\nover his alleged involvement in a financial scandal at Bulog.<\/p>\n
The change of the status of Bulog will allow for better
\ntransparency of the use of the agency's resources.<\/p>\n
Rizal had said earlier that the gains from commercial
\nactivities could be used partly to cover the government's rice
\nsubsidy program.<\/p>\n
He said that the agency should manage on a more commercial
\nbasis its more than 1,500 warehouses scattered in various places,
\nof which less than five percent were currently being utilized.<\/p>\n
The overcapacity resulted from earlier, corrupt practices
\nunder which the agency's facilities were mostly built without any
\nfeasibility studies.<\/p>\n
The government plans to follow the mode of Malaysia's
\nlogistics agency Bernas, which has a similar role to Bulog but is
\nnow a publicly listed company in that country.<\/p>\n
New IBRA official<\/p>\n
Meanwhile, Rizal declined to confirm whether Felia Salim had
\nbeen appointed to replace Jerry Ng as deputy chairman of the
\nIndonesian Bank Restructuring Agency (IBRA), who recently
\ntendered his resignation.<\/p>\n
\"I have no comment on that,\" he said.<\/p>\n
Sources have said that Felia, an official at the powerful
\nFinancial Sector Policy Committee (FSPC), had been appointed to
\nreplace Jerry.<\/p>\n
The FSPC brings together several senior economic ministers led
\nby Rizal and oversees the country's major banks and corporate
\nrestructuring processes.<\/p>\n
Several legislators had earlier called on the government to
\nend the role of the FSPC because it only slowed down the
\nrestructuring work of IBRA by making unnecessary interventions.<\/p>\n
They also said that according to the existing rules, there was
\nno obligation for IBRA to report to the committee, but to the
\nfinance minister.<\/p>\n
There has been speculation that Jerry, a professional banker
\nappointed last year to be in charge of bank restructuring work at
\nIBRA, tendered his resignation because of the strong intervention
\nby FSPC.<\/p>\n
The appointment of Felia, a former director of the Jakarta
\nStock Exchange, could raise concern that Rizal was trying to
\nconcentrate further authority over the country's crucial bank and
\ncorporate restructuring program into his hands. Already, there
\nhas been speculation that Rizal is dominating the FSPC, often
\nbypassing the finance minister.<\/p>\n
IBRA is currently the country's most important financial
\nagency, controlling over Rp 600 trillion worth of various assets
\ntransferred from closed and recapitalized banks. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-chief-chosen-with-mission-to-create-profit-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}