Bulog getting out of wheat flour trading
Bulog getting out of wheat flour trading
JAKARTA (JP): The State Logistics Agency (Bulog) will
relinquish its wheat flour activities to deal solely with rice
once its remaining stock is sold, Minister of Industry and Trade
Rahardi Ramelan said on Friday.
Rahardi, who is also the agency's chairman, denied the wheat
flour stocks would be sold gradually to prevent disruption of
market prices.
"Once they are sold, we will concentrate on dealing with the
distribution and procurement of rice," he said after the
installation of the ministry's new inspector general.
Rahardi was quoted by Antara news agency as saying the
government imported 3.2 million tons of wheat in 1998.
He said the agency's wheat flour stock was 542,042 metric tons
at the end of February.
He said that early this year the agency offered up to a 15
percent discount for wheat flour in a move to increase sales
which slowed after the Christmas, New Year and Idul Fitri
festivities.
Rahardi denied a report Bulog set up a consortium of wheat
flour distributors to replace the now defunct Federation of
Association of Sugar and Wheat Flour Distributors (Gapegti).
Bisnis Indonesia daily reported on Thursday that the
consortium was established to buy Bulog's wheat flour produced by
private PT Bogasari Flour Mills, the country's biggest wheat
flour miller, and PT Berdikari.
Gapegti, a cartel-like association, was dissolved last year
following allegations it was involved in hoarding basic
commodities.
Traders fear the consortium could lead to emergence of a new
cartel in the distribution of the product.
"Bulog never set up a consortium. The consortium was
established by small traders, distributors and cooperatives so
they could buy Bulog's wheat flour at discounted prices," Rahardi
said.
He argued that small distributors and cooperatives could buy
wheat flour in greater amounts as part of a consortium, and it
would be cheaper than buying in small groups.
The consortium is expected to buy 150,000 tons of the agency's
stock at much lower prices.
Rahardi acknowledged the consortium would buy the agency's
wheat flour at even lower prices than its 15 percent discounted
prices.
However, he assured the consortium would not become a new
cartel because distribution lines would be unhindered.
Bulog lost its monopoly to import and distribute wheat, wheat
flour, soybeans, garlic and sugar in February last year under the
economic reform package agreed upon with the International
Monetary Fund. (gis)