Jakarta, CNBC Indonesia – Perum Bulog chief manager Budi Waseso (Buwas) openly revealed the reasons behind the rice import plan. Where, Buwas had previously said, Bulog had a commitment to store up to 500,000 tons of rice abroad.
During a hearing with Echelon I of the Ministry of Agriculture (Kementan), head of the National Food Agency (Bapanas) and chief director of Food Holding ID Food, on Wednesday (11/24/2022), Buwas revealed that he have received a rice stockpile allocation of 1.2 million tonnes by the end of 2022.
Buwas explained that as of Nov. 22, 2022, Bulog had purchased 912,000 tons of rice for the government’s rice reserve (CBP). Where, the highest absorption occurred in the months of March and June.
“At that time, we were still supplying CBP at a price set by the Ministry of Commerce (Ministry of Commerce). Rp 8,300 per kg,” Buwas said.
“Then, from mid-July, the price went up such that we could no longer buy IDR 8,300. So, through the Rakorta, a flexible price was set at IDR 8,800 per kg. In order to be able to buy 500 thousand tons. But we can it only buys 40,000 tonnes,” he continued.
As a result, he added, the government rescinded its rice price flexibility policy.
“So we bought rice at commercial prices, Rp. 8,900-10,200 per kg. However, even that did not absorb up to 100 thousand tons. Because there was no harvest. In South Sulawesi, NTB, West Java, nobody, Lampung is not managed to harvest,” Buwas said.
“We have pocketed an agreement that there will be a supply of 300,000 tons, but the realization can only be 50,000 tons. There are no goods,” he added.
Meanwhile, Buwas said, the price of rice has started to rise in response to high inflation in the country. The president, he said, then ordered Bulog to make preparations immediately.
“At that time, the president was told that there would be a surplus of 6 million tons of Indonesian rice. Then Bulog was ordered to purchase 1 million tons. And to this day we are making purchases at a trade price of IDR 10,200 per kg. But we don’t want to, it’s just that there are no goods,” Buwas said.
“We have also contacted the big rice entrepreneurs. But even they are not willing because it is to maintain their supply to their market,” he said.
Buwas added that Bulog’s support for farmers’ production has been demonstrated. At least for the past 4 years, CBP has always been sourced from farmers’ produce.
“We buy it even if the price is high. So, this is the condition on the ground. It is not the origin of Bulog’s initiative. But we have the task of the state so that the reserves reach 1-1.2 million tons In the meantime, we still have to continue to distribute it to KPSH. With the stock not arriving. The current 600 thousand tons, the remaining 2 months, means that we have to distribute another 300 thousand tons, so that the stock remains only 300 thousand tons,” he explained.
“Meanwhile, a Perpadi representative said the stock is only 2 weeks away. This would create panic buying,” Buwas said.
For this, he said, with the task of maintaining a stock of 1-1.2 million tons, Bulog then prepared 500 thousand tons of reserves abroad.
“However, it’s not medium rice because CBP has to be medium. It’s commercial rice. And what’s currently available in these countries is premium rice,” he said.
“This condition is very precarious, because rice is a stomach problem, a fundamental problem. That’s not what Bulog wants. It’s not what Bulog wants to get an import quota of 500,000 tons. We always give priority to domestic production, but again the problem is that the commodity doesn’t exist,” Buwas said. .
Buwas also warned, there is a time limit.
“Now countries are also starting to ban exports. If it’s too late, we can’t get the goods,” concluded Buwas.
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