Accused Of Mark Up For Rice Import Prices, Bulog Boss: Demurrage Is Inevitable

President Director of the Public Company of the Logistics Affairs Agency (Perum Bulog) Bayu Krisnamurthi. (Photo: ANTARA)

JAKARTA - The President Director of the Public Logistics Agency (Perum Bulog) Bayu Krisnamurthi opened his voice about accusations of mark-up on rice import prices.

He explained that demurrage or loading and unloading delays are unavoidable.

For your information, the National Food Agency (Bapanas) and Bulog were reported to the Corruption Eradication Commission (KPK) on charges of inflating the price or mark-up of rice imports and holding rice at Tanjung Priok Port.

Both are suspected of inflating the import price of 2.2 million tons of rice worth IDR 2.7 trillion and causing the state to lose due to demurrage of IDR 294.5 billion.

Under certain conditions, loading and unloading delays are unavoidable as part of the risk of handling imported commodities. So, for example, it is scheduled for five days, to seven days. Maybe because of the rain, the port flow is full, the workers are not there because of holidays, and so on," said Bayu in an official statement, Thursday, July 4.

In mitigating the risk of importation, he continued, demurrage is a cost that must be taken into account in import export activities.

According to Bayu, the existence of demurrage costs is part of the logical consequences of import export activities.

"We always try to minimize the cost of demurrage and it is entirely part of the costs included in the calculation of the financing of importing companies or exporters," he said.

Currently, continued Bayu, Perum Bulog still takes into account the total demurrage costs that must be paid, including by negotiating with Pelindo, the coverage of insurance parties and the delivery route.

"The demurrage estimate to be paid compared to the value of imported products is not more than 3 percent," he explained.

Meanwhile, Director of Supply Chain and Public Service of Perum Bulog Mokhamad Suyamto said, the beginning of the alleged mark-up emerged when a Vietnamese company named Tan Long Group offered 100,000 tons of rice for US $ 538 per tonne with the FOB scheme.

Suyamto explained that it turned out that the company concerned had registered itself as a partner of Perum Bulog in import activities, but had never given a price offer to Bulog.

Tan Long Vietnam's company, which is reported to have made rice offerings, has actually never made a price offer since the 2024 bidding was opened. So there is no attachment to import contracts with us this year," he said.

Suyamto said that Perum Bulog currently gets an assignment to import rice from the Ministry of Trade, amounting to 3.6 million tons by 2024. In the January-May 2024 period, the number of imports has reached 2.2 million tons.

Furthermore, he explained, imports were carried out by Perum Bulog on a regular basis by looking at the national balance sheet and prioritizing the absorption of rice and grain in the country.

"We continue to maintain our commitment to remain a trusted food supply chain leader so that we can contribute more to the welfare of the Indonesian people and this is of course in accordance with our 4 vision of transformation," he explained.