Bulog to import 1.2 million tons of rice

JAKARTA (JP): Indonesia is to open two international tenders for the procurement of about 1.2 million metric tons of rice, State Minister of Food and Horticulture AM Saefuddin said yesterday.

Saefuddin said the state logistics agency (Bulog) would hold the first tender next Wednesday for the importation of 600,000 tons of rice.

He said that the agency would open the second tender in September to procure the remaining 600,000 tons.

"For the 1998/1999 fiscal year which will end next March, we need 3.1 million tons of rice. About one million tons of the rice had been imported," Saefuddin said after meeting President B.J. Habibie along with National Logistic Agency (Bulog) chief Beddu Amang at the Bina Graha presidential office.

In addition, the minister said Japan was committed to exporting 500,000 tons of rice to Indonesia under a soft loan contract with the government.

Japan has also agreed to provide another 100,000 tons with half of this being in a grant while the rest will be part of the Consultative Group on Indonesia (CGI) loan package.

Vietnam is to soon send 100,000 tons, and has allowed Jakarta to delay the payment until next year.

"We will also sign a contract for the purchase of 200,000 tons through a soft loan arrangement from Taiwan," the minister noted.

Beddu said Bulog would also open an international tender for 200,000 tons of soybeans without giving a specific date.

He disclosed the President's order to revoke the previous government's decision which granted the Confederation of Market Retail Cooperatives (Inkoppas) and market retail cooperatives (Koppas) exclusive rights in the distribution of cooking oil in Jakarta and West Java.

"The President ordered the lifting of the monopoly granted to Inkoppas and Koppas to distribute cooking oil and to give opportunities to wholesale cooperatives and other small and medium companies," Beddu said.

Minister of Industry and Trade Rahardi Ramelan announced last month that the government would only allow cooperatives to distribute cooking oil in a bid to stabilize price and to promote the organizations.

The move however has failed to normalize prices because the cooperatives do not have enough experience and capital to manage the business in the short term. (prb)