Rice stocks will last three months: Bulog

Rice stocks will last three months: Bulog

JAKARTA (JP): The State Logistics Agency (Bulog) has said that
its rice stocks currently stood at 2.1 million metric tons, or
only enough to meet domestic demand for about three months.

Bulog's chairman, Beddu Amang, said Wednesday that the
agency's existing stocks dropped from 2.5 million tons three
weeks ago.

"The stocks will be enough to supply domestic demand for three
to four months," he said.

But Beddu ruled out a possible rice shortage in the coming
months even though Bulog was unlikely to meet its rice
procurement target of 1 million tons for this year due to
continued decline in the country's rice production caused by bad
harvests.

He said that Bulog's procurement in the January to May period
has only reached 85,000 tons, down sharply from 1.2 million tons
in the same period last year.

"But don't worry, our stocks will increase because our rice
imports continue to flow in from Thailand, China and Pakistan and
we are still receiving rice aid from other countries," he said.

"Besides, the harvest season is not over yet, although the
results were not as good as we expected," he added.

However, Reuters reported early this month that Thai rice
exporters had stopped taking Indonesian letters of credit for
rice orders due to Indonesia's uncertain situation.

The Thai Rice Exporters Association's president, Vorapong
Pichpongsa, said: "The situation in the country raises a lot of
questions on risks which we are not ready to take."

Beddu said the most important job for Bulog now is to ensure
smooth distribution of important commodities, which were hampered
by massive riots in Jakarta two weeks ago.

Bulog spokesman Masjkur Sulaiman said yesterday that his
agency had continued its market operations throughout the city in
an effort to supply enough essential commodities to the market at
reasonable prices.

He admitted that the recent riots, during which many stores,
supermarkets and shopping centers throughout the capital were
damaged and burned, had disturbed distribution of commodities,
which has resulted in soaring prices.

"We are focusing our market operations in traditional market
throughout the city. People can buy unlimited amounts of rice at
Rp 1,200 per kilogram in our market operation. So don't worry, we
will do our best to secure an adequate supply of important
commodities," Masjkur said.

Bulog lost its monopoly to import and distribute wheat, wheat
flour, soybeans and sugar from Feb. 1 under the economic reform
package agreed to with the International Monetary Fund.

But under a supplementary memorandum signed in March, the fund
agreed to maintain Bulog's presence in markets outside of rice
because the private sector has yet to replace Bulog's role in
importing and distributing basic commodities. (gis)