Indonesian Political, Business & Finance News

Rice stocks enough: Hartarto

| Source: JP
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)
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