BPS Suggests Rice Imports
Wednesday, 20 December, 2006 | 17:15 WIB

TEMPO Interactive, Jakarta: The Central Bureau of Statistics (BPS) has asked the government to import rice so that stocks at the State Logistics Agency (Bulog) remain in a safe condition.
This is because currently market operations and cheap rice procurement for the poor are still needed.

Rusman Heriawan, BPS Head, said the absence of rice procurement would certainly trigger price increase that could put pressure on inflation.

“It is if market operation and providing cheap rice for the poor are still considered as important despite there being insufficient stocks, so of course the rice import option must be taken” he told Tempo in Jakarta yesterday (19/12).

According to him, Bulog’s rice is in fact still available as proved by the fact that market operations can be carried out.

However, stocks have actually already almost been depleted.

In addition, the next harvest will only take place between February and March 2007, due to the rice sowing delay.

“The general public should believe Bulog’s explanation about the rice stock condition,” said Rusman.

He went on to say that if in January 2007 rice could be imported, inflation could go down to a lower level.

The reason for this is that rice imports can maintain rice prices at a normal level.

A government official said Bulog needs to import at least 600,000 tons of rice to secure reserves at a level of 350,000 tons.

The reason is, until March 2007, the agency cannot afford to buy domestic rice.

Until December 14, he said, Bulog’s stocks only amounted to 990,000 tons.

This amount includes the state’s reserves of 258,000 tons.

This means that rice reserves fully organized by the agency were only 732,000 tons.

From this amount, a further 28,000 tons must be distributed to the Indonesian Military (TNI) and the National Police.

In addition, between January and March 2007, Bulog will have to distribute 474,000 tons of cheap rice for the poor.

“Those are only the staple needs, and do not include market operations,” said the official.

Trade Minister Mari E. Pangestu stressed that the rice import decision would be made by the government.

Bulog does not have the right to decide the amount of rice to be imported.

“Bulog only carries it out,” she said when asked for confirmation regarding the amount of Bulog’s rice imports.

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