Monday, 18 July 2016


President Jokowi accompanied by Minister of State Owned Enterprises, Rini Soemarno, and Managing Director of States Logistics Agency (Bulog), Djarot Kusumayakti, lauched Rice Market Operation on 1,034 tons of rice for five provinces, i.e. Jakarta, Medan (North Sumatra), Bandung (West Java), Semarang (Central Java) and Surabaya (East Java).

Djarot, in his report, stated that the market operation is done simultaneously in Jakarta, Medan, Bandung, and Surabaya, with a total of 300,000 tons of rice. However, at the same time distribution of 1,034 tons of rice for the five provinces is also done, with details: 110 tons of rice by 11 trucks to Medan, 480 tons of rice by 60 trucks to Jakarta, 144 tons of rice by 18 trucks to Bandung, 130 tons of rice by 12 trucks to Semarang, and 170 tons of rice by 17 trucks to Surabaya.

Djarot said that the market operation is intended to stabilize food prices and to show that the government is always ready and available, as well as helping to lessen people’s burden during this difficult time. In Addition, Bulog’s market operation is also intended to prevent room for speculation during the declining panen gadu (harvest at the beginning of the rainy season).

Bulog’s stock today is as much as 1.7 million tons. this position for now is still quite safe. Bulog also continues to optimize rice absorption which is intended to accumulate the existing stock, so that people do not need to worry.

In the Market Operations, premium rice is sold at a price of IDR 8,700-9,700/kg. Market operation is carried out by a Task Force which has been designated, then distributed to the market to be sold directly or through traders.

Along with the launch of the Rice Operation, Bulog also distributes or pours additional allocation of restra or raskin (rice for the poor). With this additional allocation, there will be an additional supply of rice to the public a minimum of 464 million tons, which is expected to help create stabilization of rice prices.

“We should be grateful that the BPS survey results announced yesterday stated that farmer exchange rate rose nearly close to 2%. It means that farmers benefit from rising prices in the market. Farmers benefit from rising prices in the market. Farmers are happy. But on the other hand, BPS report yesterday mentioned that there is a price of 2%. Well, this is what we want to stabilize this morning with market operation, so that the increase did not continue and the bias is controlled in reasonable prices which is affordable, “said the President after releasing the trucks transporting rice from Bulog’s warehouse, in Kelapa Gading, North Jakarta, on Friday (October 2).

As stated by heads of regional divisions in Jakarta, Medan, Bandung, Semarang and Surabaya, the target of the rice operation could lower the prices of rice to approximately IDR 300-500 per kg. Although the President saw that in two day as there have been traders who lower rice prices by IDR 100-200 per kg. But he wanted to keep the prices of rice affordable in addition to it being available in the market, the stock is also available.

“We also want to show, so that later not only in this warehouse, but also in other warehouse, that our stock is available. There must be no rumors that there is no stock. And we will do more absorption from farmers and from traders in some regions where there is still no harvest, like in Karawang, Central Java, and East Java. This continues to be absorbed by Bulog, and we expect that in the future there will be a little extra stock of Bulog,” the President explained. (E)

Business News - October 7, 2015

No comments: