RI won't import rice: Bulog head

RI won't import rice: Bulog head

JAKARTA (JP): Head of the State Logistics Agency (Bulog),
Beddu Amang, reiterated here yesterday that the government would
not import rice despite the prolonged dry season.

Beddu said the agency's current rice stocks of about three
million tons were sufficient to offset a possible drop in rice
production.

"The existing rice stock will be enough to face the dry season
until next March or April," Beddu said after reporting to
President Soeharto.

He said President Soeharto had urged Bulog to launch a market
operation in important locations to ensure prices would not
increase.

The President asked the agency to sell rice in market places
or a market operation any time without having to wait for price
hikes, he said.

"Even if the agency has to carry out a market operation for 10
months, selling about one million of its rice stocks, it will
still have a rice stock of about one million tons," he said.

Indonesia would therefore not need to import and this would
save the country's foreign exchange reserves, he said of his
agency's plan to cut import programs.

President Soeharto appealed to the government and private
institutions to cut imports to curb a further depletion of the
country's foreign exchange reserves, which were recently severely
hit by the dollar rush.

The rupiah has declined by over 20 percent this year, more
than half of the fall took place in the last few weeks due to
speculative attacks from local and fund managers.

"We have to maintain price stability. The dollar's surge
should not affect commodity prices, especially those produced
locally," he said, adding that Bulog would conduct a market
operation if necessary.

Beddu said the crude palm oil export tax had been reduced to
50 percent. "This has increased our imports," he said.

He said Bulog had received higher crude palm oil allocations
of 20,000 tons from 10,000 tons previously.

"The deregulation package encourages exports. Our duty to
stabilize local prices now becomes more difficult. We have
therefore asked state-owned plantations for additional supply to
help stabilize the price," he said. He said prices for prime
commodities like rice, soybeans and palm oil were stable. (icn)