Bulog, private firms partner to export rice

The Jakarta Post ,  Jakarta   |  Sat, 04/04/2009 1:49 PM  |  National

State logistics company Perum Bulog will partner with 10 private companies as part of a  government plan to export 100,000 tons of rice this year, Bulog head Mustafa Abubakar said, as quoted by state news agency Antara.

Mustafa said that none of the 10 private companies had decided to withdraw from their commitment to export rice with Bulog, despite the fact that the government has allowed private companies to export rice independently.

He said that the logistics agency has agreed to cooperate with 10 suppliers and seven buyers to implement the rice export plan.

He added that officials from the ministry of trade and the ministry of agriculture would check  fields to identify which companies would supply rice to the state-owned logistics agency.

Indonesia is set to export 100,000 tons of premium rice to a number of countries including Japan, Singapore, Brunei Darussalam and Malaysia this year.

The government previoulsy ruled that rice exports should be carried out by Bulog in cooperation with private companies but later decided to allow private firms to export rice directly.

Abubakar said that the government had not decided how much of the 100,000 tons of rice can be exported by private firms.

He said that up to now, Indonesia had about 140,000 to 220,000 tons of potential export quality rice but Bulog lacks premium rice stocks in its warehouses, meaning it has to partner with private firms to exporting the grain.

Bulog's chief said that the first shipment was expected to be carried out in May, 2009.

"Basically, the export license is already in hand but we still are waiting for a recommendation from the ministry of agriculture for pre-shipment of the rice," he said.

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