Perum Bulog to start operation in May

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.