Bulog's new status

Bulog's new status

The State Logistics Agency (Bulog) has insisted on changing its status from logistics agency to state-owned Perum Pangan (general firm dealing with logistics).

Bulog Chief Widjanarko Puspoyo said the draft bill on the government's law on the Perum Pangan had been submitted to President Megawati Soekarnoputri before she left for official trips abroad.

If the draft bill is approved Bulog will become Perum Pangan starting Jan. 1, 2003.

Bulog, which was linked to several graft cases, including the case involving House Speaker Akbar Tandjung, has made good a contribution to the country with a total sale of Rp 6.4 trillion last year.

While Bulog has set this year's target sale is Rp 8.9 trillion, Widjanarko said that the change in Bulog status could boost new optimism and the target could increase to Rp 10 trillion.

Bulog has so far played a significant role as stabilizer of food staple prices, and it is feared the change in status could change its function as business would be the focus.

If business is the main reason behind the change in Bulog's status, then other, more reasonable efforts to improve Bulog's performance should be found instead.

-- Bisnis Indonesia, Jakarta