Rice stocks enough: Hartarto

JAKARTA (JP): Coordinating Minister of Production and Distribution Hartarto strongly dismissed yesterday rumors that the country would soon face rice shortages.

"We have enough rice stocks for this year and even for coming years. We are continuing to procure rice and we will import if our supply is not adequate," Hartarto said after meeting with Soeharto at the latter's residence on Jl. Cendana, Central Jakarta.

During the meeting, Hartarto was accompanied by Minister of Industry and Trade Tunky Ariwibowo and chief of the State Logistics Agency (Bulog) Beddu Amang.

Many people have complained about the spiraling prices of daily essentials, especially rice and cooking oil. Some merchants have said people would only buy imported rice as a last resort due to its low quality.

Hartarto was optimistic that Bulog would be able to purchase more rice from farmers because harvests would likely start in April.

"We will do our best to secure an adequate supply of the nine basic needs," Hartarto said.

According to the government, the nine basic needs comprise salt, sugar, cooking oil, kerosene, rice, salted fish, detergent, textiles and unbleached textiles.

Beddu said Bulog's rice stocks would not dip below 1.7 million tons through March.

This year's harvest would yield more rice than last year, he predicted.

The yield of unhusked rice was only 49.3 million tons last year. Bulog expected at least 53 million tons this year.

He said the agency would be able to supply a sufficient amount of rice throughout the country at reasonable prices.

"Our rice imports also continue to flow in," he remarked.

The government has announced that it will import up to 2 million tons of rice by March, mostly from Thailand and Vietnam.

Chairman of the Thai Rice Exporters' Association Vorapong Pitchpongsa told Reuters last week that Indonesia would buy 800,000 tons of rice this year.

"As of December, we have imported 441,000 tons of rice," Beddu said.

In accordance with the new International Monetary Fund (IMF) reform package agreed to on Jan. 15, the government has eliminated Bulog's monopoly to import wheat, wheat flour, soybean, garlic and sugar. Bulog's monopoly is now limited to rice.

"We will establish the Bulog Foundation, a new company. This foundation is totally private in its operations and funding," Beddu pointed out.

He said the government would arrange the procurement of essential foodstuffs without violating its commitment with the IMF. (prb)