Bulog to continue wheat flour import<\/p>\n
JAKARTA (JP): The State Logistics Agency (Bulog) said
\nyesterday that it would still import wheat and wheat flour
\ndespite the abolishment of its import and distribution monopoly
\non the commodity in February.<\/p>\n
Bulog's chairman Beddu Amang said in a statement that Bulog
\nwould continue to import the commodities as private companies
\nwere not ready to carry out the job.<\/p>\n
Beddu said some private companies might be able to start
\nimporting wheat on April 1.<\/p>\n
But Bulog would completely withdraw from import activities if
\nthe companies were able to carry out the task of procuring and
\nselling the commodities on the domestic market, he said.<\/p>\n
Bulog's import activities are essential to ensure price
\nstability.<\/p>\n
Beddu said the sharp fall in the rupiah's value against the
\nU.S. dollar had tripled the price of imported wheat.<\/p>\n
To protect consumers from the soaring price of wheat flour,
\nthe government will continue to subsidize wheat flour, he said.<\/p>\n
Bulog lost its monopolies over the import and distribution of
\nseveral commodities on Feb. 1, as part of the agreement signed on
\nJan. 15 by the International Monetary Fund (IMF) and President
\nSoeharto.<\/p>\n
The agreement only allows Bulog to keep its monopoly over rice
\nimports. It can no longer operate as a buffer stock agency to
\nstabilize other important commodities such as sugar, wheat flour,
\nsoybeans and cooking oil.<\/p>\n
The 50-point agreement, including the elimination of Bulog's
\nmonopolies, is part of the requirements for Indonesia to receive
\na US$43 billion loan package arranged by the IMF.<\/p>\n
Under the agreement, private importers and private flour mills
\nare allowed to directly import wheat and wheat flour.<\/p>\n
Previously, Bulog was solely responsible for the import of
\nwheat while PT Bogasari Flour Mills, a subsidiary of the Salim
\nGroup, held the exclusive rights to mill Bulog's wheat into flour
\nfor 25 years.<\/p>\n
Last month, Beddu said Bulog would import 4.25 million tons of
\nwheat in 1998\/1999 fiscal year. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-to-continue-wheat-flour-import-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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