Millions benefit from special rice program<\/p>\n
JAKARTA (JP): The government program to sell heavily
\nsubsidized rice to poor people has benefited some 49 million
\npeople since its launching in August last year, according to
\nconsultants hired to assess the scheme.<\/p>\n
The program, jointly administered by the Office of the State
\nMinister of Food and Horticulture and the State Logistics Agency
\n(Bulog), channeled 1.8 million metric tons of rice to 10.5
\nmillion families, Steven R. Tabor of the Economic Management
\nServices International, announced on Thursday.<\/p>\n
Under the program, called the special market operation, the
\ngovernment sells 20 kilograms of medium quality rice monthly at
\nRp 1,000 (13 U.S. cents) per kilogram to designated poor
\nfamilies.<\/p>\n
This is in contrast to market prices of around Rp 2,600.<\/p>\n
Tabor, who attributed Bulog and its massive distribution
\nnetwork for the success, said the program cost the government Rp
\n2.7 trillion (US$360 million) for the year's duration, and had
\nhad no impact on the market rice price.<\/p>\n
In contrast, the old price stabilization program would have
\ncost the government approximately Rp 16 trillion and a producer-
\ntax effect of Rp 21 trillion. The previous program, which was
\nalso administered by Bulog, had a 23 percent cost-effectiveness
\nin reaching the poor, according to the report.<\/p>\n
\"The government should retain the program, as it was proven to
\nbe efficient and cost-effective,\" Tabor said.<\/p>\n
He pointed out that the program also induced an indirect
\ntransfer of income amounting to Rp 6,413 per person a month,
\nrepresenting an average 10 percent addition to their income.<\/p>\n
Tabor acknowledged that the program was not leak-proof, with
\nsome 15 percent of the rice going to unintended beneficiaries.
\nThis occurred in spite of close monitoring and evaluation by non-
\ngovernmental organizations and universities.<\/p>\n
Muharto, director of planning and development at the Office of
\nState Minister of Food and Horticulture, said the program was
\nprefinanced by Bulog. The government only paid for 800,000 tons
\nof rice, leaving about one million tons unpaid for, he said.<\/p>\n
Tabor said that as of last week, the government had an
\noutstanding debt of Rp 368 billion to Bulog.<\/p>\n
The program has not been as successful in urban areas as it
\nhas in rural areas because of administrative problems in
\nidentifying rightful recipients.<\/p>\n
To overcome the problem, the government and the UN World Food
\nProgram have entrusted non-governmental organizations to
\nadminister the program in five major urban centers.<\/p>\n
H.S. Dillon, who chairs the Center for Agricultural Policy
\nStudies, said the program was the government's main instrument in
\nmeeting the food needs of the poor.<\/p>\n
\"This is the most appropriate step in upholding human rights
\nin our country,\" said Dillon, who is also a member of the
\nNational Commission on Human Rights.<\/p>\n
Dillon, however, warned against complacency after the success
\nof the program, noting that some recent government policies had
\nonce again shown to have \"urban bias\" tendencies.<\/p>\n
Falling into this urban bias category was the government's
\ndecision to terminate the program, in spite of its success, at
\nthe end of the current fiscal year on March 30 next year, he
\nsaid. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/millions-benefit-from-special-rice-program-1447893297",
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