Rahardi stresses competitive bidding for foodstuff puchases

Rahardi stresses competitive bidding for foodstuff puchases

JAKARTA (JP): The acting chairman of the State Logistics
Agency (Bulog) Rahardi Ramelan said yesterday he would review the
agency's international tender mechanism for buying foodstuffs but
insisted that competitive bidding would be the basic rule of the
game.

Rahardi said that competitive bidding would ensure more
transparency and efficiency in the importing and procurement of
rice and other staples.

"We will arrange competitive bidding, I didn't say tenders. I
will review the tender system and discuss it first with my
staff," Rahardi said after he took over from Beddu Amang at a
simple ceremony.

Bulog's first open rice and wheat tender in August attracted
major international interest and so did its sugar and soybean
tenders.

The government replaced Beddu -- a long-time Bulog insider who
has chaired the agency for the past three years -- with Minister
of Industry and Trade Rahardi Ramelan on Wednesday.

The agency will, for the time being, be run jointly by the
minister of industry and trade, Minister of Cooperatives, Small
and Medium Enterprises Adi Sasono, and State Minister of Food and
Horticulture A.M. Saefuddin.

Rahardi said his first priority was to lower the price of
rice.

Local rice prices have risen to as high as Rp 4,000 (36 U.S.
cents) per kilogram in recent weeks, well above the government's
target price of between Rp 1,750 and Rp 2,000 per kg.

Beddu reckoned yesterday he had done a successful job in
chairing Bulog for the past three years.

Under his leadership the agency has undergone massive reform,
holding international open tenders for the purchase of rice,
sugar, wheat and soybeans. Such tenders were unheard of under
former president Soeharto.

"The current soaring prices of rice and other staples are
partly due to the inadequate domestic rice procurement this year
which has caused shortfalls in several provinces," Beddu said.

"Importing it will take some time. It will also take more time
to distribute the staples to the various provinces."

Coordinating Minister for Economy, Finance and Industry
Ginandjar Kartasasmita said the replacement of Beddu Amang had
been in the pipeline for some time and was in line with the
government's desire to reduce the agency's role,

"It wasn't a sudden decision," he said. "(Beddu) was honorably
discharged from his position; it was long planned."

Speaking at the ceremony, Ginandjar denied speculation that a
rift between Beddu on one side and Rahardi and Adi Sasono on the
other was a reason for the replacement.

"It's part of the government's effort to streamline, improve
our efficiency, and part of the review of the function of Bulog.
In a modern society and a market economy, Bulog is just a
monopoly," he added.

Bulog's procurement deputy, M. Amin, indicated that the
agency's rice tender originally scheduled for Wednesday but
postponed by Beddu until Sept. 10 would be annulled.

Bulog said Tuesday that it canceled the tender to buy 600,000
metric tons of rice Wednesday because international prices were
too high.

But traders said the cancellation was partly due to the fact
that Beddu was on the verge of being fired.

Earlier this month Indonesia agreed to buy 500,000 metric tons
of rice from Thailand, but negotiations have since failed over
how much Jakarta would pay for 80 percent of the rice, due to be
paid in cash.

Another deal to buy 400,000 tons of rice from Vietnam has also
been put on hold over how Indonesia should pay. Negotiations to
buy 200,000 tons from Taiwan were broken off over Taipei's
concerns about attacks on the ethnic-Chinese minority in May.

Under the International Monetary Fund's bailout package signed
in January, Bulog's monopoly to import and distribute essential
goods, except rice, was supposed to have been removed. However
the measure was postponed in June. (gis)