Logistics agency gets new boss<\/p>\n
JAKARTA (JP): The Indonesian government separated the function
\nof the National Logistics Agency (Bulog) from the office of the
\nstate minister of food yesterday amid growing concern over the
\nsteep rise food prices, in particular the price of rice.<\/p>\n
The separation was effected when Minister\/State Secretary
\nMoerdiono promoted Beddu Amang from deputy chief to new chief of
\nBulog, replacing State Minister for Food Ibrahim Hasan, who had
\nheld the post since March, 1993.<\/p>\n
"We cannot let the market control the prices of staple foods
\nbecause there are basic differences between the mission of
\nprivate institutions, on the one hand, and state institutions, on
\nthe other," Moerdiono said, adding that private sector is purely
\nprofit-oriented, while Bulog's mandate is to stabilize prices.<\/p>\n
He said that Bulog must intervene, whenever the prices of food
\nstaples are soaring, by releasing its stocks.<\/p>\n
Moerdiono added that food price stability is crucial to
\ncurbing the inflation rate.<\/p>\n
The government has been greatly concerned over the high
\ninflation rate in recent months, which is mainly due to steep
\nrises in the prices of food commodities, notably rice.<\/p>\n
For the month of January alone, the inflation rate was already
\n1.16 percent.<\/p>\n
Bulog was set up in 1967 by the Soeharto administration to
\nmanage the distribution of basic food commodities in a bid to
\nmaintain food security at reasonable prices.<\/p>\n
Owing to its important role, Moerdiono ruled out any
\nsuggestion of privatizing Bulog. "I have never thought of
\nprivatizing Bulog."<\/p>\n
Beddu Amang, who has been in Bulog for over 20 years, noted
\nthat the idea of privatizing Bulog had been sparked by public
\ndebate about the country's high cost economy.<\/p>\n
"The debates have led to the provocative idea of privatizing
\nBulog or making it a source of profit for the government," Beddu
\nsaid in a press conference immediately after his installation..<\/p>\n
He said those who wanted to privatize Bulog did not really
\nunderstand Bulog's special role in the country's economy.<\/p>\n
The government announced last October that the floor price of
\nhusked rice paid by Bulog to village cooperatives was to be
\nincreased by 11 percent to Rp 657 per kilogram beginning in
\nJanuary but retail prices have risen much more steeply in recent
\nweeks.<\/p>\n
Analysts say that the gap between Bulog's floor price and
\nretail prices should not be higher than 30 percent.<\/p>\n
According to the ministry of agriculture, last year's
\nproduction of unhusked rice was estimated to reach only 46.4
\nmillion tons, down by 3.69 percent from 48.18 million tons in
\n1993.<\/p>\n
The decrease in rice production has forced Bulog to import
\nrice and prompted the government to recall, ahead of schedule,
\nits rice loans to several governments, in order to add 900,000
\ntons to the national stock.<\/p>\n
"The last two years were difficult years. We had drought,
\nfloods, the problem of distribution, transportation, the
\ndiminishing rice stocks and the importation of rice," State
\nMinister of Food Ibrahim Hasan told journalists.<\/p>\n
Long time ago<\/p>\n
Moerdiono, however, ruled out any notion that the separation
\nbetween Bulog and the office of the food minister had been
\nprompted by a failure on Ibrahim's part to secure the country's
\nrice self sufficiency.<\/p>\n
"President Soeharto planned a long time ago to separate the
\nfunctions of the two institutions, given their important roles,"
\nMoerdiono said.<\/p>\n
"The task of the minister of food is so important that he
\nshould not be burdened with other duties of equal importance,"
\nMoerdiono added.<\/p>\n
The government has assigned to Bulog the task of stabilizing
\nthe prices of such basic food commodities as rice, sugar,
\nsoybean, wheat, corn.<\/p>\n
He explained that, after the separation, the office of the
\nstate minister of food will be able to focus its attention on
\npolicy, while Bulog will concentrate on price stabilization.<\/p>\n
Moerdiono defended Bulog's monopoly on certain commodities,
\nprovided it is for the purpose of ensuring the stability of basic
\nfood prices for the people.<\/p>\n
"For macro-economic strategy, Bulog's role is still needed to
\nmaintain economic stability because up to now the prices of food
\nstaples have weighed heavily among the components of the consumer
\nprice index, which is the measure of our inflation," Moerdiono
\nsaid. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/logistics-agency-gets-new-boss-1447893297",
"image": ""
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