Rice stock enough for 12 months, Bulog says

JAKARTA (JP): The State Logistics Agency (Bulog) has dismissed rumors that the country would soon face a rice shortage, saying that current stocks were sufficient for one year and imports would continue to flow in.

Bulog chairman Beddu Amang said yesterday that Bulog rice stocks were currently 2.5 million tons, enough to meet domestic demand for about 12 months.

"We have enough rice for this year. We are continuing to procure rice and we will import more if our supply is not adequate," Beddu said in a media conference.

He said the agency planned to distribute 200,000 tons of rice each month, 150,000 tons of which would be given to civil servants and members of the armed forces. The remaining 50,000 tons would be used for market operations, he added.

Rice distributed by Bulog makes up only part of the domestic supply because not all locally grown rice is sold to the agency.

Beddu said last month that the agency's stocks stood at 2.1 million tons, enough to meet domestic demand for only three to four months.

He also said that domestic rice procurement may fall to 250,000 tons this year, the lowest level in 20 years.

When asked about the differences between the two announcements regarding Bulog stocks, Beddu said the previous account was based on the assumption that Bulog's market operations would require over 200,000 tons of rice per month.

"Our market operation in October 1997 used 260,000 tons of rice, in November 340,000 tons, in December 445,000 tons, in January 413,000 tons, in February 482,000 tons and in March 386,000 tons. The quantity of rice required for market operations began to show a decreasing trend in April, when it fell to 120,000 tons because the harvest had started. Since then 73,000 tons were used in May and 46,000 tons in June," Beddu said.

Beddu was optimistic that the agency would be able to supply a sufficient amount of rice throughout the country at a reasonable price.

"Don't worry, our stocks will increase because we are continuing to import rice and we are still receiving food aid from other countries," he said.

Meanwhile, Sudjarwo, spokesman for state port operator PT Pelindo II which operates Tanjung Priok port, said that no more rice shipments were expected until August.

"The last ship carrying imported rice arrived last Friday. It brought 13,700 tons of rice from Bangkok," he said.

Beddu, however, promised that imports would continue to flow in. He added that Japan had pledged to supply 500,000 tons of rice through a soft loan with a 30-year maturity and a further 100,000 tons as a grant, Taiwan had agreed to sell 200,000 tons, China 250,000 tons, Vietnam 10,000 tons, and Thailand 5,000 tons in the form of a grant.

Beddu also said that from yesterday sugar mills were allowed to sell their produce directly to the public, adding that Bulog planned to import raw sugar to help meet domestic demand.

He said the raw sugar would be refined in sugar mills in Jakarta and in mills owned by the state sugar plantation company (PTPN).

"Importing raw sugar is US$100 per ton cheaper than importing refined sugar. The processing cost is $40 per ton so by importing raw sugar and processing it ourselves we will be able to sell it at lower prices," Beddu said, adding that refined sugar was sold at $360 per tons.

He said that Indonesia would need to import 1.3 million of sugar this year if domestic output reached 1.8 million tons. Annual consumption in the country is a staggering 3.1 million tons.

Beddu said the International Monetary Fund (IMF) has agreed that up to Rp 5.6 trillion could be used to subsidize foodstuffs and fertilizers, of which Rp 2.7 trillion would be used to import rice to ensure that supply remained plentiful and prices remained low.

"The subsidy is not being given to help foreign farmers, but to help consumers," he said. (gis)