Bulog to continue wheat flour import

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)