Bulog chief defends price-stability policy<\/p>\n
JAKARTA (JP): National Logistics Agency (Bulog) chief Beddu
\nAmang yesterday lashed out at members of the World Trade
\nOrganization (WTO) who link price-stabilization policies with
\nprotectionism, saying the two are \"fundamentally distinct
\nconcepts\".<\/p>\n
Speaking at the Asia International Rice Conference in
\nSingapore, Beddu said the benefits of price stability,
\nparticularly for food, were important.<\/p>\n
\"Unfortunately, in my opinion, many member nations of the WTO
\nseem to equate stabilization with protection. As a result,
\nstabilization instruments, such as variable import levies, have
\nbeen declared illegal,\" he said in his speech, also sent to The
\nJakarta Post.<\/p>\n
He acknowledged that although protection and stabilization
\nsometimes went hand in hand, the two were fundamentally
\ndifferent.<\/p>\n
He said Bulog's price-stabilization program had shielded
\nIndonesia's economy from much of the instability on the world
\nrice market without systematically protecting consumers or
\nproducers.<\/p>\n
In times of high international prices, he said, Bulog's market
\noperations had helped protect consumers, and that farmers were
\nprotected when prices went down.<\/p>\n
Defending Bulog's role in Indonesia's economy, Beddu said its
\noperations did not represent continual changes in government
\npolicy or the strength of interest groups.<\/p>\n
\"Instead, this pattern reflects a consistent long-term vision
\nthat we have successfully implemented for more than 25 years,\"
\nBeddu said.<\/p>\n
WTO Deputy Director General Anwarul Hoda acknowledged at an
\nAsia Pacific senior officials meeting here last month that
\ncommodity trading by state agencies was being criticized by
\nseveral WTO members for causing trade distortions.<\/p>\n
Some countries had expressed concern over the problems of
\nstate trading and proposed that it be \"looked into in greater
\ndetail in the next round of agricultural negotiations in 1999 or
\nearlier,\" Hoda said.<\/p>\n
Bulog, established in 1967, controls the distribution of
\nseveral important commodities to assure food security.<\/p>\n
The government designated the agency as the sole importer and
\ndistributor of rice, sugar, wheat and corn and other commodities.<\/p>\n
The media scrutinized the agency last year after a harsh
\ndrought in 1994 cut Indonesia's rice production by 4 percent to
\n46.40 million tons of unhusked rice, forcing Indonesia to import
\nrice.<\/p>\n
Many analysts believe the role of Bulog will decline over the
\nnext five to 10 years, and is likely to be restricted to managing
\nrice stocks for poverty alleviation.<\/p>\n
Other analysts, although questioning Bulog's closed financial
\nmanagement, agree that the price-stabilization policy was
\nfruitful in the 1980s, evidenced by the realization of domestic
\nrice self-sufficiency in 1983.<\/p>\n
In terms of assets, Bulog is believed to be one of the
\ncountry's richest state enterprises. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-chief-defends-price-stability-policy-1447893297",
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