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Bulog allocates Rp 37 trillion to buy commodities from farmers
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Farmers carry paddy stalks to be milled at a factory in Ngawi, East Java. (Antara/Ari Bowo Sucipto)
T
he State Logistics Agency (Bulog) has allocated Rp 37 trillion (US$2.7 billion) from bank loans to buy several commodities, including rice, soybeans, corn and sugar, from local farmers and other countries in an effort to stabilize prices.
“As of today, we’ve got commitments from banks for a total of Rp 37 trillion to buy several commodities,” Bulog chairman Djarot Kusumayakti told a press conference on Tuesday.
The state enterprise aims to increase local rice purchases to 3.7 million tons this year from 2.9 million tons last year. Of the 3.7 million tons, 3.2 million tons will be provided for free to 14 million low-income households, while the remaining 500,000 tons will go to the commercial market.
(Read also: Government has no plan to import rice this year)
Djarot said with subsidized rice and sufficient rice supplies last year, the rice price remained stable at around Rp 8,000 per kilogram.
The agency hopes to repeat its success to also stabilize prices for sugar, soybeans and meat. However, it needs improved cooperation with private stakeholders that agree to sell the commodities at the prices set by Bulog.
“Today we have good cooperation with private stakeholders to buy meat and corn. We want to have better cooperation. Only with good cooperation can we create stable prices,” Djarot added.
Bulog has also allocated Rp 2.3 trillion to invest in post-harvest infrastructure, from rice storage to mills and corn dryers, to ensure that the agency can buy more commodities from local harvests at better quality. (bbn)
