Bulog wants more money for controversial program<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Commodity regulator, the State Logistics Agency (Bulog), has
\nproposed a higher budget next year to provide a greater amount of
\ninexpensive rice for tens of millions of poor families
\nnationwide.<\/p>\n
Bulog chairman Widjanarko Puspoyo said that the agency wanted
\nto increase the amount to Rp 5.61 trillion (US$623 million) in
\n2005 to distribute around 2.2 million tons of rice to low-income
\nhouseholds.<\/p>\n
In comparison, the current budget for the rice for the poor
\nprogram (locally known as raskin ) is around Rp 5.25 trillion.<\/p>\n
He said at a hearing on Wednesday with the House of
\nRepresentatives Commission III that despite the declining trend
\nin the number of poor in the country over the past five years,
\nthe budget for the raskin program should be increased because the
\ncurrent budget appropriation was not sufficient.<\/p>\n
The raskin program was introduced three years ago to provide
\nsubsidized rice for poor families, in a bid to compensate them
\nfor the rising fuel prices as the government decided to cut fuel
\nsubsidies.<\/p>\n
However, the demand for a higher budget allocation, was looked
\nupon with suspicion as there have been allegations that the
\nraskin program has been manipulated by some of the officials in
\ncharge.<\/p>\n
Under the program, the rice is sold at Rp 1,000 per kilogram
\n(much lower than the market price). Each family deemed low-income
\nis entitled to 20 kilograms of rice per month.<\/p>\n
Widjanarko acknowledged that the raskin program had not been
\nable to reach all 15.7 million poor families in the country.<\/p>\n
The budget allocated for this year, for example, is only
\nenough to distribute the subsidized rice to around 8.6 million
\nfamilies.<\/p>\n
Widjanarko said that was due to limited funding.<\/p>\n
According to the agency's data, of the families involved in
\nthe program, on average they only received 13.3 kg of rice per
\nmonth.<\/p>\n
eyebox<\/p>\n
Ministry of Defense may stop buying rice from Bulog<\/p>\n
The Ministry of Defense plans to stop buying rice for the
\nTNI\/Police and civil servants from Bulog, which would force the
\nagency to buy less unhusked rice and rice from farmers.<\/p>\n
Bulog's director Widjanarko Puspoyo said the TNI plans to
\nsubstitute rice allowances with cash for TNI and civilian
\nofficials within the Ministry of Defense and TNI starting in July
\n2004.<\/p>\n
Widjanarko said Bulog sells 200,000 tons of rice worth Rp 600
\nbillion each year to the TNI\/Police and the Ministry of Defense.<\/p>\n
\"We had planned to buy 2 million tons of unhusked rice and
\n50,000 tons of rice from the farmers this year. If we don't have
\nthe market, how can we buy from the farmers?\" Widjanarko wondered
\non the sidelines of a hearing with legislators.<\/p>\n
Widjanarko did not say the reason for the TNI's change. But
\nmany said it was because Bulog provided rice of lower quality for
\nthe soldiers.<\/p>\n
He added that Bulog had sent a letter to President Megawati
\nSoekarnoputri and related ministers for them to consider the
\npolicy which has been in place for nearly 35 years. He added that
\nsince 1999 storing and procuring rice had been financed by
\ncommercial funds. It has meant a large expenditure for managing
\nstock, securing the floor price and distributing rice for people
\nin the low-income bracket due to high interest rates.<\/p>\n
Bulog's benchmark rice prices are increasing to compensate for
\nthe high interest rate, Widjanarko said.<\/p>\n
\"The financing for our buffer stock should be put in the state
\nbudget. Using commercial funds to finance rice buffer has proven
\ninefficient. High prices, above the market price, is deemed an
\ninefficiency within the agency, \" Widjanarko said.<\/p>\n
Bulog's proposed budget for the national buffer stock totals
\nRp 3.55 trillion to be financed by 2004 State Budget.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-wants-more-money-for-controversial-program-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}