Perum Bulog to start operation in May<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
Perum Bulog, a newly formed agency replacing the National
\nLogistics Agency (Bulog), is expected to start operation in early
\nMay, a Bulog source said on Monday.<\/p>\n
It will be launched after the government team finishes
\nformulating the organizational structure of the new agency.<\/p>\n
\"They started formulating the structure six months ago, and it
\nis expected to be completed in March,\" said the source,
\nexplaining that the team was headed by Mulyo Sidik, former Bulog
\ndeputy chief for planning.<\/p>\n
The government changed Bulog into semi-profit oriented Perum
\nBulog under a governmental regulation issued on Jan. 20. The
\nJakarta Post incorrectly stated on Monday that the regulation had
\nyet to come into effect, while in fact the regulation was
\neffective from the date the regulation was issued.<\/p>\n
With its new status, Bulog will not only be responsible for
\nsafeguarding rice stocks, thus stabilizing the price of the
\ncommodity, but will also be allowed to seek profit.<\/p>\n
Bulog's spokesman Sugito confirmed that Perum Bulog will be
\nlaunched in May.<\/p>\n
When asked about the likely future leader of Perum Bulog,
\nSugito said the current Bulog chief, Widjanarko Puspuyo, would
\nprobably lead the new agency given the strong support from
\nBulog's current employees.<\/p>\n
Perum Bulog needs an experienced person to lead it through the
\nprobable uncertainties in the first years of operation, Sugito
\nargued.<\/p>\n
Under the government regulation, the Minister of Finance will
\nappoint Perum Bulog's directors.<\/p>\n
The change in Bulog's status into Perum Bulog is part of the
\ngovernment's efforts to make the agency more accountable.<\/p>\n
In the past, Bulog has often been used by corrupt government
\nofficials and politically linked businessmen as a cash cow to
\nsupport their political and business interests.<\/p>\n
Although many welcomed the change in status, it has also
\nraised concerns among critics, who fear that the new status would
\nmove Bulog to focus to profits, rather than on its social mission
\nof stabilizing rice prices.<\/p>",
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