Bulog will not import rice this year

JAKARTA (JP): Chairman of the State Logistics Agency (Bulog) Beddu Amang said yesterday Indonesia would not import rice this year as stocks were sufficient to meet a possible shortfall in production.

"We need not import rice. We have sufficient rice stocks," Beddu said after a ceremony to accept the audit results from the Development and Finance Control Board.

Beddu said the agency, which has been granted the monopoly over rice imports as part of its function to stabilize domestic food prices, had 2.7 million tons of rice in its storehouses across the country, including 500,000 tons of imported rice.

Beddu acknowledged that the quality of the 500,000 tons of imported rice was worsening but he said the agency could make 90 percent of it eatable through special technology.

He projected the agency would still have one million tons of rice in stock by the end of March next year.

But the DPA press agency reported yesterday that Thai rice traders expect to meet this year's export targets due to the greater demand in Indonesia and to a competitive price advantage because of the baht's depreciation.

"Usually Indonesia has to import between 500,000 and 600,000 tons of rice per annum to meet local demand, but this year because of drought and forest fires they will need to import more," said the managing director of the Thai Rice Exporters Association, Somboon Patchaicharn.

Patchaicharn said Indonesia would need to import Thai rice, although it is usually more expensive than rice from Vietnam and India because of depleted stockpiles in those countries.

Beddu said farmers have raised rice prices due to the drought and failed crops in several areas.

But the price increase was still within an acceptable level of 2 percent, he said.

"We think an increase in the rice price of between 2 percent and 3 percent is still reasonable," he said.

Minister of Agriculture Sjarifudin Baharsjah earlier said the country's unhusked rice production this year was estimated to be the same as last year, which was 50 million tons. Any decline would not be more than 0.9 percent.

He said production was likely to increase 2 percent despite the prolonged season.

Beddu said the agency had been audited by the Development and Finance Control Board with an unqualified opinion for the fiscal year of 1996/1997.

"We made a profit of Rp 30 billion (US$10 million) this fiscal year (1996/1997)," he said. (jsk)