As Per May 18 Sugar Distribution of PT PN to be Managed by Bulog Again

As per May 18, 200, sugar distribution by PT Perkebunan Nusantara and PT Rajawali Nusindo [RNI] would once again be managed by The Board of Logistics [BULOG] after yesterday Monday [18/5] contract agreement were signed in Surabaya designating BULOG as distributing agent for sugar commodity.

According to the Director of Prum BULOG Mustafa Abubakar amidst the National Seminar entitled “To drive the Sabang region according it its status” Tuesday [19/5] in Jakarta, this cooperation were follow up of distribution task during October-December 2008 for 250 thousand tons of sugar of PTPN and RNI.

Of six PTPN i.e. PTPN II, VII, XI, X, XI, and XIV and PT RNI were sure that this collaboration were rated as being positive, and BULOG has been asked to act as distributor agent for their products which was estimated at + 600 thousand tons. By this cooperation, according to Mustafa, sugar cane farmers had the choice : to join the program with PTPN and RNI who were distributing through BULOG or not.

“Presently the average selling price of white sugar were above Rp. 8.000/kg. With this collaboration the Government expected that the price would be pressed down to Rp. 7.000/kg there by to maintain efficiency at distribution level and which would help the distribution chain, making the selling price more profitable but attractive”. Mustafa remarked.

Further he added, with this binding collaboration BULOG would be entitled to received distribution fee of 1.5% of the selling price minus value added tax which was estimated at around Rp. 60/kg.

This mechanism still depended on when the sugarcane would enter the mill, because presently the procedure was still at preparatory stage and would not be effective until June 09.

Frying Oil to Follow Soon
At the same opportunity Mustafa also explained that he had forwarded the proposal for frying oil distribution which was based on distribution, and the system channeled rice for the poor people [Rice for the poor] “Through the State Ministry od State-owned enterprise BUMN we have tried to act through related association as distributor of frying oil.

For that BULOG benefited from the channel which had been used for distributing rice for the poor, but in the case of frying oil Minyakita brand oil there were two possibilities : to use the existing BULOG distribution mechanism, or to designate BULOG to act as stabilizer of frying oil price.
However, to undertake the task BULOG must have reserved frying oils owned by the Government whereby their would be fund from the National Budget to ensure stock for subsidy assignments. For that the matter were being discussed by the Minister of BUMN, Department of Industry, and BULOG “as state owned enterprise, BULOG was ready to do any task assigneds by the government” Mustafa further remarked.