Beddu Amang replaced as Bulog chief

Beddu Amang replaced as Bulog chief

JAKARTA (JP): President B.J. Habibie yesterday replaced the
State Logistics Agency (Bulog) chairman Beddu Amang in what
information minister Muhammad Yunus said was the initial step in
a concerted effort to restructure the agency.

Yunus told journalists after a cabinet meeting on political
and security affairs that a presidential decree had been prepared
for the replacement, which took effect yesterday.

The agency would for the time being be run jointly by Minister
of Industry and Trade Rahardi Ramelan, Minister of Cooperatives,
Small and Medium Enterprises Adi Sasono, and State Minister of
Food and Horticulture A.M. Saefuddin, he said.

Yunus said Beddu was being replaced in light of the government
program to restructure the agency, which is in charge of the
procurement and distribution of basic staple foods throughout the
country.

"As of January 1, the agency will only handle (the procurement
and distribution of) rice. This (replacement) is entirely for
reasons of efficiency," he said.

Bulog has been named by the International Monetary Fund (IMF)
as one of the monopolies to be disbanded in return for a multi-
billion dollar aid package to help Indonesia overcome its current
economic difficulties.

The agency has often been accused of inefficiency and
corruption.

Beddu and A.M. Saefuddin met with Habibie after the cabinet
meeting and were later joined by Rahardi.

All three refused to talk to the press afterwards.

A few hours before the announcement, Beddu was still talking
to the media about the agency's plans to import 4.5 million
metric tons of rice, up from a previous estimated requirement of
3.5 million tons, to meet domestic needs this year.

Local rice prices have risen to as high as Rp 4,000 per
kilogram in recent weeks, well above the government's target
price of between Rp 1,750 and Rp 2,000 per kg.

Some observers have speculated that a rift between Beddu on
one side and Rahardi and Adi Sasono on the other could be one of
the reasons behind the replacement.

The chairman of the Association of Indonesian Edible Oil
Industries, Nafis Daulay, said: "The Ministry of Industry and
Trade and Bulog have recently appeared to be at odds with one
another. Their policies on rice and cooking oil supplies, for
instance, were not synchronized."

H.S. Dillon, executive director of the Center for Agriculture
Policy Studies, commented yesterday a strategic agency like Bulog
should be headed by a person who really knew the movements of the
food market and could not be easily coopted by certain interest
groups.

Both Daulay and Dillon speculated that the real reason behind
Beddu's removal was evidence of collusion in the awarding of
Bulog contracts to import basic commodities. Most contracts have
thus far been awarded to the Salim Group.

They said now that Beddu had been replaced, the agency would
become more transparent in its procurement and distribution
operations.

Economist Didik J. Rachbini from the Institute for Development
of Economics and Finance (INDEF) believed that Beddu's removal
would speed up the process of rationalizing and restructuring the
agency.

"Bulog has been targeted for restructuring by the IMF because
it is notorious for inefficiency and the opaque manner in which
it operates," Didik said.

Elyas, a member of the House of Representatives Commission III
for agriculture, forestry and plantations, said Beddu should be
held responsible for the steep rise in the price of basic
foodstuffs despite the government having provided huge subsidies.
(prb/gis/rid)