Bulog and Private Companies May Export Rice
Wednesday, 16 April, 2008 | 16:03 WIB

TEMPO Interactive, Jakarta: The government agreed to allow the State Logistics Agency (Bulog) and private companies to export rice, both the common variety as well as the special one. “However, they cannot export too much,” said trade minister, Mari Elka Pangestu, in Jakarta, yesterday.

Exports will be regulated by trade minister regulation No. 12/M-DAG/PER/4/2008 about rice importing and exporting, issued on 11 April 2008. “It is to secure our national rice supply, including smuggling outside of Indonesia,” said Mari.

Bulog and private companies should have a permission certificate from the trade minister, recommended by the team for food coordinating and stabilizing. The government will check the national rice supply before issuing permission. The secured national rice supply is 1.3-2 million tons of rice. “Export can be accomplished if our rice supply is more than 3 million tons or equal to one month’s domestic consumption,” he said.

Bulog can export husked rice, organic rice, red rice, siam rice, and screw pine rice. Private companies can export sticky rice.

Mari said that people should not be concerned about the national rice supply regarding this export plan. The recent rice supply of 1.3 million tons is enough for this year. The price is stable and tends to decrease during to the harvest session.

The world’s largest rice exporters like Vietnam, Thailand, India, China, and Egypt, have limited their rice export. They decided to secure their domestic needs. Only the Philippines plans to import one million tons of rice. Last week, President Susilo Bambang Yudhoyono warned that the world food crisis could impact Indonesia.

Bulog director, Mustafa Abubakar, said that they do not want to export rice this year. Bulog will prioritize domestic needs. “It is our job to secure domestic needs. Domestic food price stability can be disturbed if we export rice,” he said.

The national rice supply of 1.3-1.4 million ton is indeed secured. But, Mustafa said, that supply does not mean we have rice surplus. “Maybe we can export rice in 2009 if our production increases.”

In Madiun, 700 farmers refused this rice exporting plan. “That's an unfeasible idea,” said Suharno, head of the farmers association of Andalan, Madiun, yesterday. Rice export will not increase the price of husked rice or be profitable for farmers. “It is more profitable for big traders who have exporting access,” he said.

ARIYANI | AGUS SUPRIYANTO | DINI MAWUNTYAS