Low Production And Price Regulations Don't Make Rice Stocks Up To 1.2 Million Tons At The End Of The Year

President Director of Perum Bulog Budi Waseso. (Photo: Doc. Antara)

JAKARTA - President Director of Perum Bulog Budi Waseso said that the fulfillment of government rice stocks of 1.2 million tons will not be until the end of this year. Until November, the stock of rice owned by the government was only around 651,000 tons. "It will definitely not be fulfilled," he said in a meeting with Commission IV of the DPR, in Jakarta, Wednesday, November 16. Budi Waseso's nickname explained that one of the reasons was that the price of rice in the country continued to increase. With limited regulations, Bulog did not get the opportunity to absorb farmers' products. "The first one as explained earlier, there used to be price flexibility with us that we can still absorb (the results) farmers, but once the price flexibility became Rp8,800 (per kilogram) we were tested at a price of Rp8,900 (per kilogram) so we still couldn't buy it and it would increase inflation," he said. Buwas said, the regulation limiting the purchase of rice made Bulog unable to do much. Furthermore, Bulog also initiated to absorb farmers' products according to market prices. However, Buwas found another problem is the narrowing of rice production from farmers, plus the absorption from before by parties outside Bulog. "As soon as we follow (price) the market, we cannot buy at market prices because the goods are also limited," he said.

On that occasion, Buwas revealed that the absorption of domestic farmers' products was only able to reach 92 thousand tons. This number is much lower than the previously set target of 500 thousand tons. "So the target that we allocate is that we have collected all the milling with our partners that have been agreed until December this year, we can absorb 500 thousand tons, that has already been agreed with our partners. But to this day, we can only absorb 92 thousand tons from the target of 500 thousand tons," he said. "Because one, the goods are gone, sir," he continued.

Rice Production Not Much Related to a number of regions has rice production between 100-600 thousand tons, Buwas said he had confirmed it to related parties. As a result, Buwas admitted that he did not find that much rice production. For example, in Lampung, there is reportedly 600 thousand tons of rice. However, Buwas emphasized that the number found was not that much. So, again, Bulog did not get a share of rice absorption from farmers. "We have also confirmed this, sir, we have also gone directly to one of our directors directly to the field, and met the local government there, with the Governor, with the Regional Police Chief, with the Pangdam, in fact there is not that much," he said. Buwas said Bulog had prepared funds to absorb the agricultural products according to the market price. That is, farmers who sell rice will still benefit. "We will in principle buy it at the market price, sir. With commercial the system is no longer limited, as in Lampung (the price is) Rp. 10 thousand (per kilogram) sir, it is certain that there are goods, and it is Rp. 10 thousand, for sure we buy Rp. 10 thousand packs," said Buwas.