Bulog needs $2.7b to import foodstuffs<\/p>\n
JAKARTA (JP): The State Logistics Agency (Bulog) has announced
\nit will need about US$2.7 billion in soft credit from Bank
\nIndonesia to import essential commodities in the current
\n1998\/1999 fiscal year.<\/p>\n
The agency plans to import 1 million tons of sugar, 700,000
\ntons of soybeans, 4.25 million tons of wheat and 3.1 million tons
\nof rice, agency chairman Beddu Amang said Tuesday.<\/p>\n
Speaking in a hearing with the House of Representatives, Beddu
\nsaid the agency would also need another Rp 5.4 trillion (about
\n$385.4 million) in liquidity credits from the central bank to
\nsupport its market operation program.<\/p>\n
"We will need Rp 5.4 trillion and $2.7 billion in liquidity
\ncredit and soft loans from the central bank to finance the
\nimports of basic commodities and to support its market
\noperation," he told the hearing with House Commission VIII for
\nstate budget and finance, research and technology.<\/p>\n
Beddu said the agency would continue to sell sugar and wheat
\nflour below market prices.<\/p>\n
He said Bulog currently sold rice at Rp 1,650 in its market
\noperation, sugar at Rp 2,050 per kilogram, wheat flour at Rp
\n2,231 per kilogram and soybeans at Rp 1,800 per kilogram.<\/p>\n
The agency previously sold the rice at Rp 1,200 a kilogram,
\nsugar at Rp 1,800 a kilogram and wheat flour at Rp 1,200 a
\nkilogram.<\/p>\n
Beddu said the 86 percent increase in the price of wheat flour
\nwas because the government "was too slow in adjusting the wheat
\nflour price with the international market and with the sharp fall
\nin the rupiah value against the U.S. dollar.<\/p>\n
"If I was the one who decided, I would have increased the
\nwheat flour price a long time ago.<\/p>\n
"The wheat flour price should be set at Rp 4,000 considering
\nthe continued fall in the rupiah value. But since the government
\nhas decided to subsidize Rp 1,800 per kilogram, we can sell it at
\nRp 2,200."<\/p>\n
He said the agency registered a surplus of Rp 94 billion in
\nhandling the import and distribution of wheat and wheat flour in
\n1993\/1994. Since then, Bulog had continued to suffer from a
\ndeficit.<\/p>\n
"The deficit was due to the increase in the wheat flour price
\non the international market and the amount to be imported."<\/p>\n
Indonesia relies on imported wheat and wheat flour to meet the
\ndemand of local bakery and biscuits industry.<\/p>\n
Beddu said Bulog's rice procurement in the January-to-June
\nperiod plunged 90 percent, to 126,716 tons from 1.6 million tons
\nin the same period last year.<\/p>\n
"It's the lowest level in 20 years. But don't worry, we are
\nstill receiving rice aid from other countries."<\/p>\n
He added that Japan had pledged to supply 550,000 tons of rice
\nin soft loans with a 30-year maturity and grant, Taiwan would
\nsell 200,000 tons, China provide 250,000 tons in loans and
\nVietnam 10,000 tons. Thailand would also give 5,000 tons in a
\ngrant and 500,000 tons would come from the Islamic Development
\nBank.<\/p>\n
Meanwhile, state port operator PT Pelindo II, which operates
\nJakarta's Tanjung Priok Harbor, said no ships carrying imported
\nrice had docked at the port since July 1.<\/p>\n
Pelindo's public relations chief Sudjarwo said that his
\ncompany had not received any notification from Bulog on the
\narrival of rice-cargo ships at the port.<\/p>\n
"Up to now, there are no plans for rice-carrying ships to
\narrive here this month."<\/p>\n
He added that 1.18 million tons of imported rice had arrived
\nin the port on 118 vessels since last November. (gis)<\/p>",
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