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