Bulog to continue wheat flour import

JAKARTA (JP): The State Logistics Agency (Bulog) said yesterday that it would still import wheat and wheat flour despite the abolishment of its import and distribution monopoly on the commodity in February.

Bulog's chairman Beddu Amang said in a statement that Bulog would continue to import the commodities as private companies were not ready to carry out the job.

Beddu said some private companies might be able to start importing wheat on April 1.

But Bulog would completely withdraw from import activities if the companies were able to carry out the task of procuring and selling the commodities on the domestic market, he said.

Bulog's import activities are essential to ensure price stability.

Beddu said the sharp fall in the rupiah's value against the U.S. dollar had tripled the price of imported wheat.

To protect consumers from the soaring price of wheat flour, the government will continue to subsidize wheat flour, he said.

Bulog lost its monopolies over the import and distribution of several commodities on Feb. 1, as part of the agreement signed on Jan. 15 by the International Monetary Fund (IMF) and President Soeharto.

The agreement only allows Bulog to keep its monopoly over rice imports. It can no longer operate as a buffer stock agency to stabilize other important commodities such as sugar, wheat flour, soybeans and cooking oil.

The 50-point agreement, including the elimination of Bulog's monopolies, is part of the requirements for Indonesia to receive a US$43 billion loan package arranged by the IMF.

Under the agreement, private importers and private flour mills are allowed to directly import wheat and wheat flour.

Previously, Bulog was solely responsible for the import of wheat while PT Bogasari Flour Mills, a subsidiary of the Salim Group, held the exclusive rights to mill Bulog's wheat into flour for 25 years.

Last month, Beddu said Bulog would import 4.25 million tons of wheat in 1998/1999 fiscal year. (gis)