$360m to secure rice supply
$360m to secure rice supply
JAKARTA (JP): The National Logistics Agency (Bulog) will spend
about Rp 800 billion (US$360 million) to secure the nation's rice
supply, an agency executive says.
"Bulog will spend the money to purchase rice domestically. The
amount should enable the agency to purchase around 1.3 million
tons of rice," Beddu Amang, Bulog's chairman, said yesterday.
Beddu said that Bulog planned to build up a total stock of two
million tons of rice this year. He declined, however, to comment
on Bulog's current rice supply.
"We will go all out to secure a national stockpile of at least
two million tons," he said.
Indonesia became self-sufficient in rice in 1984, after being
the world's largest rice importer for decades.
A severe drought last year slashed rice production by four
percent from the 1993 level, down to 46.40 million tons of
unhusked rice. As a consequence, the nation's rice stockpile has
fallen to its lowest level in 15 years.
The 1994 drought forced Indonesia to import a significant
quantity of rice for the first time in years.
The government has estimated that rice production will
increase by 1.5 percent this year, over last year's level.
But despite the projected increase, the rice supply will still
be lower than in 1993.
Beddu Amang said yesterday that the Rp 800 billion fund has
been provided by the state-owned Bank Rakyat Indonesia. He did
not reveal the terms on which the funds are being provided.
He said this month alone Bulog had signed contracts for the
procurement of 92,000 tons of rice.
To secure the procurement target, he added, Bulog would ease
its quality standards for unhusked rice bought from farmers.
In January Bulog received about Rp 457 billion from the
Ministry of Finance because the agency had already spent Rp 3.45
trillion of its Rp 4.4 trillion budget for the 1994-1995 fiscal
year.
Bulog also oversees the importation and distribution of sugar,
wheat and soya beans. Since its establishment in 1967, the agency
has never yet released its accounts. (hdj)