Govt's plan on Bulog hailed<\/p>\n
JAKARTA (JP): Businesspeople and analysts hailed yesterday the
\ngovernment's plan to scrap the National Logistics Agency's
\n(Bulog) trading monopoly in several commodities.<\/p>\n
Businessman Sudwikatmono, an executive at the Salim Group,
\nsaid he welcomed the government's decision and said the group's
\nPT Bogasari Flour Mills, which holds the exclusive rights to mill
\nBulog's wheat into flour, had anticipated it.<\/p>\n
\"If that really happens, it's all right. We are happy with
\nthat,\" Sudwikatmono told journalists after attending PT
\nIndocement Tunggal Prakarsa's extraordinary shareholders meeting.<\/p>\n
\"We have prepared everything for the ASEAN Free Trade Area (in
\n2003). It is in this context that we have also decided to
\nrestructure Indocement,\" he added.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff
\nreaffirmed yesterday the government's plan to abolish Bulog's
\nmonopolies in food commodities, except rice.<\/p>\n
\"If I have the full authority, I will slash them all, except
\nfor rice, our national staple, which I will not touch at all,\"
\nAfiff asserted in reply to questions of reporters yesterday who
\nseemed still doubtful about the seriousness on the part of the
\ngovernment.<\/p>\n
He admitted that the plan was facing strong objections from
\nseveral ministers.<\/p>\n
\"Some ministers are complaining. But we will try our best to
\nreach a consensus,\" Afiff said, adding that Bulog's role would be
\none of \"price stabilizator\" for basic food commodities,
\nespecially rice.<\/p>\n
Economist Didik J. Rachbini also welcomed the government's
\nplan to end Bulog's monopoly, calling it a good step to reduce
\nmarket distortions in several commodities.<\/p>\n
Bulog could now concentrate on maintaining price stability, he
\nsaid.<\/p>\n
But he said the planned deregulation was a \"little late\".<\/p>\n
\"After decades of holding the exclusive rights to mill Bulog's
\nwheat into flour, who can now challenge Bogasari's domination in
\nwheat flour?\" he asked.<\/p>\n
He said any newcomers would find it extremely difficult to
\nmake inroads to the wheat flour market which has been dominated
\nby Bogasari, he said.<\/p>\n
Saleh Afiff said Wednesday the government planned to end
\nBulog's trading monopoly in wheat, soybeans, garlic, onions and
\nsugar.<\/p>\n
But Afiff said this measure was not related to the Salim
\nGroup's controversial restructuring which would inject PT
\nIndofood Sukses Makmur, which controlled Bogasari, into its
\nSingapore-based subsidiary QAF Ltd.<\/p>\n
Afiff said the removal of the monopolies would also be in
\nline with \"our preparations to meet the challenges posed by
\neconomic globalization\".<\/p>\n
He added that the removal of trading monopolies would greatly
\nstimulate new investment in those commodities and would
\neventually enable the country to produce not only for the
\ndomestic needs but also for the international market.<\/p>\n
Bulog's public relations official Masykur Sulaiman said
\nyesterday the agency was prepared to carry out whatever decisions
\nthe government would take regarding the agency's trading
\nmonopoly.<\/p>\n
\"Bulog has so far been successful in maintaining stability in
\nthe price of the commodities under its monopoly. Stable prices
\nhave supported the government in containing inflation,\" Sulaiman
\nsaid.<\/p>\n
\"Bulog is the last line of defense in stabilizing the national
\neconomy,\" he asserted.<\/p>\n
Franciscus \"Franky\" Welirang, another executive of the Salim
\nGroup, said he did not see any relationship between the
\ngovernment's market move, restructuring or Bogasari's businesses.<\/p>\n
He contended that Bogasari was already well-positioned to
\ncompete freely with other flour milling companies if Bulog lost
\nits wheat and flour monopoly.<\/p>\n
\"We are now the most efficient wheat miller in the country,\"
\nWelirang said.<\/p>\n
There are two other flour milling companies: PT Berdikari
\nFlour Mills in South Sulawesi, whose management is also
\ncontrolled by Bogasari, and the newly established PT Citra Flour
\nMills in Cilacap, Central Java.<\/p>\n
Bogasari, Welirang said, received a fixed milling fee of Rp
\n83.7 (3.1 U.S. cents) per kilogram of wheat from Bulog. The fee
\nincluded the costs of unloading the wheat from cargo vessels,
\nstoring, milling, packaging and loading the flour into trucks.<\/p>\n
\"Is that figure too expensive? I don't know. It costs about Rp
\n30 to mill a kilo of unhusked rice,\" Welirang said.<\/p>\n
Economist Christianto Wibisono of the private Indonesia
\nBusiness Data Center suggested the government pursue a gradual
\nliberalization in commodity trading, which had existed for two
\ndecades.<\/p>\n
\"The problem is that we don't know the actual market condition
\nnow because the trading of those commodities has been managed by
\nBulog for over 25 years. Bulog has become so strong while the
\nprotected farmers remain weak,\" he said.<\/p>\n
He suggested the government start by liberalizing wheat and
\nsugar trade. But Bulog should be allowed to retain the rice
\nmonopoly.<\/p>\n
\"People are presently worried about the price of food items,
\nespecially rice, and their supply because of what has been
\nhappening to the rupiah,\" economist Christianto Wibisono said.<\/p>\n
The rupiah declined sharply against the dollar following
\nspeculative attacks since early July but has since regained some
\nground.<\/p>\n
Bulog has been assigned to ensure stable prices of so-called
\nstrategic food commodities and has an import monopoly on rice,
\nwheat and wheat flour, refined sugar, soybeans, garlic and
\nonions.<\/p>\n
Bulog purchases rice at the government-set price from farmers
\nfor its buffer stock, currently at about three million tons and
\nsells it on the market when the price rises steeply.
\n(08\/jsk\/das\/rid)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govts-plan-on-bulog-hailed-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }