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Bulog says rice stock sufficient this year

The State Logistics Agency (Bulog) has reiterated that rice stocks will be sufficient at least until the end of this year, adding it plans to distribute the grain in smaller packages that consumers can afford to buy

Winny Tang (The Jakarta Post)
Jakarta
Sat, September 15, 2018

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Bulog says rice stock sufficient this year

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he State Logistics Agency (Bulog) has reiterated that rice stocks will be sufficient at least until the end of this year, adding it plans to distribute the grain in smaller packages that consumers can afford to buy.

Bulog said it will distribute the rice in smaller sizes to all provinces across the country to make sure rice is well distributed.

Headed by president director Budi Waseso, the agency plans to distribute at least 10,000 tons of small rice packages of 200 grams for Rp 2,500 each (13 US cents), both to traditional markets and convenience stores.

“We are in the process of making rice packs available in Alfamart and Indomaret,” he said, referring to the country’s two popular convenience stores.

Budi, a former chief of the National Police’s Criminal Investigation Department, said the market had responded positively to the new products launched by Bulog two months ago.

Meanwhile, Imam Subowo, Bulog’s director of business development and industry, said 500 tons of small rice packages had been distributed across Indonesia, primarily in the regions. The packages were smaller than the regular sizes of 1 kilogram or 5 kg packages.

Bulog and the Agriculture Ministry have guaranteed stable food prices toward the end of this year because domestic rice supply is abundant. Keeping the rice price stable is crucial for President Joko “Jokowi” Widodo, who is seeking reelection next year.

Budi said the rice stock in Bulog’s warehouses stands at 2.4 million tons. Since the stock was plentiful, Bulog needed to temporarily use another warehouse belonging to the Indonesian Military.

Observing the current situation, Budi affirmed that importing rice would not be necessary this year.

“There was an order to import 1 billion tons of rice. However, where are we going to put the rice? Unless the Trade Minister wants to prepare more warehouses for us or wants use his office as a rice warehouse,” he joked at Kramat Jati traditional market.

Earlier, the Trade Ministry issued import permits for up to 2 million tons of rice, reasoning that it would ensure the availability of the commodity in the market, as well as maintaining its market price.

Trade Minister Enggartiasto Lukita previously said the decision to import rice was made during a coordination meeting among relevant ministries, and also with Bulog.

Agriculture Minister Amran Sulaiman concurred with Budi’s view, saying that the need to import rice was irrelevant at the moment. He also assured that rice production during the dry season would be safe.

“The old paradigm says that during dry seasons, there is less planting. However, the new paradigm says that by using technology, we can actually increase planting from 500,000 to 1 million hectares,” he said.

He went on to say the increase in productivity among farmers was because the government had built more reservoirs, irrigation channels and other infrastructure.

Bulog and Agriculture Ministry inspections at Kramat Jati traditional market on Friday found that the price of rice was stable at Rp 8,200 per kg.

Moreover, the rice stock at Cipinang Rice Central Market stood at 47,000 tons, higher than the stock in February of 15,000 to 20,000 tons.

“The conclusion is, there is no reason for the price of rice to surge,” Amran told reporters at Cipinang Rice Central Market during the inspection on Friday morning.

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