Perum Bulog to start operation in May
A'an Suryana, The Jakarta Post, Jakarta
Perum Bulog, a newly formed agency replacing the National Logistics Agency (Bulog), is expected to start operation in early May, a Bulog source said on Monday.
It will be launched after the government team finishes formulating the organizational structure of the new agency.
"They started formulating the structure six months ago, and it is expected to be completed in March," said the source, explaining that the team was headed by Mulyo Sidik, former Bulog deputy chief for planning.
The government changed Bulog into semi-profit oriented Perum Bulog under a governmental regulation issued on Jan. 20. The Jakarta Post incorrectly stated on Monday that the regulation had yet to come into effect, while in fact the regulation was effective from the date the regulation was issued.
With its new status, Bulog will not only be responsible for safeguarding rice stocks, thus stabilizing the price of the commodity, but will also be allowed to seek profit.
Bulog's spokesman Sugito confirmed that Perum Bulog will be launched in May.
When asked about the likely future leader of Perum Bulog, Sugito said the current Bulog chief, Widjanarko Puspuyo, would probably lead the new agency given the strong support from Bulog's current employees.
Perum Bulog needs an experienced person to lead it through the probable uncertainties in the first years of operation, Sugito argued.
Under the government regulation, the Minister of Finance will appoint Perum Bulog's directors.
The change in Bulog's status into Perum Bulog is part of the government's efforts to make the agency more accountable.
In the past, Bulog has often been used by corrupt government officials and politically linked businessmen as a cash cow to support their political and business interests.
Although many welcomed the change in status, it has also raised concerns among critics, who fear that the new status would move Bulog to focus to profits, rather than on its social mission of stabilizing rice prices.