Japanese rice in good condition, says Rahardi

Japanese rice in good condition, says Rahardi

JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan
has denied reports that 500,000 metric tons of rice sent here by
the Japanese government is rotting in warehouses.

Speaking on Monday, Rahardi, who is also chairman of the State
Logistics Agency (Bulog), admitted that the government had only
distributed a fraction of the Japanese rice.

"As of December 1998, the sales of Japanese rice reached 7,158
tons. The distribution of Japanese rice is expected to continue
to increase from December 1998 up to February 1999," Rahardi told
a news conference called to counter criticism in the Japanese
press.

Rahardi said the rice was being stored in Bulog warehouses
throughout the country and was in good condition.

The government began selling the Japanese rice in November
through various market operations. The rice was being sold at Rp
2,750 per kilogram for rice milled in Indonesia and Rp 2,900 per
kilogram for rice milled in Japan, Rahardi said.

He said that Bulog had so far milled 55,000 tons of unhusked
Japanese rice, adding that the rice was of high quality.

Rahardi said the Japanese government provided 400,000 tons of
unhusked rice and 100,000 tons of milled rice. In all, 600,000
metric tons of rice were pledged in June last year, with the
remaining 100,000 tons to be distributed through the World Food
Program and several non-governmental organizations.

Rice supplied directly to the government must be repaid in
rice at a later date.

"We feel it is necessary to correct recent reports in the
Japanese media relating to the whereabouts of Japanese rice
supplied to Indonesia," Rahardi said.

Last week, the Japanese Yomiuri Shimbun daily reported that a
major part of the 500,000 tons of rice sent to Indonesia between
the end of July and the end of December had been languishing in
ill-equipped warehouses throughout the country for more than four
months.

The report said that Indonesia did not have the capacity to
mill the unhusked rice, which accounted for 80 percent of the
entire consignment.

As a result, the quality of rice left in storage has
deteriorated, the report said.

The newspaper alleged that only 10,000 tons of the rice had
been distributed, mainly in Irian Jaya and East Java.

Rahardi insisted that the rice had been sent all over
Indonesia, with milled rice going to Dumai, Padang, Balikpapan,
Sorong, Jayapura and Kupang, and the unhusked rice to
Lhokseumawe, Medan, Lampung, Jakarta, Cirebon, Semarang, Surabaya
and Ujungpandang.

Japan's Foreign Ministry was quoted by Reuters as saying that
the Japanese government hoped Indonesia would make efficient use
of the rice to help relieve severe food shortages in the crisis-
hit country.

A ministry official said that more than 300,000 tons of the
consignment was shipped unhusked, adding that Indonesia had
agreed to this and had insisted that its rice mills would be able
to cope with the increased supply.

"In December, the Japanese government asked Indonesia to use
the rice efficiently...We hope they make good use of the rice we
have sent, but it's up to them to decide how to manage the
shipments," he said.

Kompas reported on Monday that the Japanese government had
sent a special team consisting of government officials and
private consultants to establish how the rice had been
distributed.

The Japanese embassy in Jakarta has also been instructed to
investigate the matter.

A drop in domestic production forced Bulog to import 4.6
million tons of rice in 1998.

Over 25 percent of the imports were secured through overseas
aid, with the remainder purchased on the open market. (gis)