LPNU OKs only Bulog has the right to export rice

Jakarta, NU Online
Chairman of the Central Board of Nahdlatul Ulama Economic Institution (LPNU) Subyakto Tjakrawerdaya expressed his OK over the government policies dealing with the possibility of Indonesia's state logistics agency (Bulog) as the only player allowed to export rice.

"Of course with the consideration that the domestic supply has been really sufficient," he told NU Onlin<>e here on Wednesday (16/4).

He said if rice was long stored it would be vulnerable for Indonesian technology of preserving the rice as being used in Japan was very expensive. In turn, he added, the surplus of domestic stocks should favorably be exported.

The policy allowing the only Bulog to export rice was so important for the agency has the power to control domestic supply and knows statistics of such domestic sufficient supply.

"Only Bulog can both export and import (rice)," he said, adding that the rule was in line with the 1945 Constitution Article 33 (2) that 'branches of production which are important for the state and which affect the lives of most people shall be controlled by the state'," he said.

As reported by NU Online Indonesian Minister of Trade Mari Elka Pangestu recently said that "It is only Bulog that will be authorized to carry out rice exports but before it does so it should first get the green light from the government through the Food Stability Team."

She also said that the Bulog could carry out rice exports only if there was a surplus in rice production. "So, there will be no export if there is no rice surplus," she added.

The government is planning to export rice as this year the country is expected to experience a rice production surplus of over 1.30 million tons. (mkf)