Bulog wants more money for controversial program
Fitri Wulandari, The Jakarta Post, Jakarta
Commodity regulator, the State Logistics Agency (Bulog), has proposed a higher budget next year to provide a greater amount of inexpensive rice for tens of millions of poor families nationwide.
Bulog chairman Widjanarko Puspoyo said that the agency wanted to increase the amount to Rp 5.61 trillion (US$623 million) in 2005 to distribute around 2.2 million tons of rice to low-income households.
In comparison, the current budget for the rice for the poor program (locally known as raskin ) is around Rp 5.25 trillion.
He said at a hearing on Wednesday with the House of Representatives Commission III that despite the declining trend in the number of poor in the country over the past five years, the budget for the raskin program should be increased because the current budget appropriation was not sufficient.
The raskin program was introduced three years ago to provide subsidized rice for poor families, in a bid to compensate them for the rising fuel prices as the government decided to cut fuel subsidies.
However, the demand for a higher budget allocation, was looked upon with suspicion as there have been allegations that the raskin program has been manipulated by some of the officials in charge.
Under the program, the rice is sold at Rp 1,000 per kilogram (much lower than the market price). Each family deemed low-income is entitled to 20 kilograms of rice per month.
Widjanarko acknowledged that the raskin program had not been able to reach all 15.7 million poor families in the country.
The budget allocated for this year, for example, is only enough to distribute the subsidized rice to around 8.6 million families.
Widjanarko said that was due to limited funding.
According to the agency's data, of the families involved in the program, on average they only received 13.3 kg of rice per month.
eyebox
Ministry of Defense may stop buying rice from Bulog
The Ministry of Defense plans to stop buying rice for the TNI/Police and civil servants from Bulog, which would force the agency to buy less unhusked rice and rice from farmers.
Bulog's director Widjanarko Puspoyo said the TNI plans to substitute rice allowances with cash for TNI and civilian officials within the Ministry of Defense and TNI starting in July 2004.
Widjanarko said Bulog sells 200,000 tons of rice worth Rp 600 billion each year to the TNI/Police and the Ministry of Defense.
"We had planned to buy 2 million tons of unhusked rice and 50,000 tons of rice from the farmers this year. If we don't have the market, how can we buy from the farmers?" Widjanarko wondered on the sidelines of a hearing with legislators.
Widjanarko did not say the reason for the TNI's change. But many said it was because Bulog provided rice of lower quality for the soldiers.
He added that Bulog had sent a letter to President Megawati Soekarnoputri and related ministers for them to consider the policy which has been in place for nearly 35 years. He added that since 1999 storing and procuring rice had been financed by commercial funds. It has meant a large expenditure for managing stock, securing the floor price and distributing rice for people in the low-income bracket due to high interest rates.
Bulog's benchmark rice prices are increasing to compensate for the high interest rate, Widjanarko said.
"The financing for our buffer stock should be put in the state budget. Using commercial funds to finance rice buffer has proven inefficient. High prices, above the market price, is deemed an inefficiency within the agency, " Widjanarko said.
Bulog's proposed budget for the national buffer stock totals Rp 3.55 trillion to be financed by 2004 State Budget.