Bulog's Rice Reserves Decline; Trade Minister Authorizes 500,000 Ton Rice Import

The government's rice reserves are below the normal level of 1.2 million tons. The National Food Agency (Bapanas) stated that the current government rice reserves (CBP) at Perum Bulog only reached 514,000 tons as of December 5, 2022.

This stock is down compared to November 22, which reached 594,000 tons. Arief said that Bulog is currently finding it difficult to absorb rice from farmers at the CBP price set by the Ministry of Trade at Rp8,300 per kg. This is because rice prices have soared.

"If we look at the current commercial stock, it has reached 37%, meaning that it's impossible for Bulog to absorb rice at a price of Rp 8,300 per kg. Instead, it will utilize commercial stocks, so Bulog's stock can still be maintained at 500,000 tons," said Arief at the Inflation Control and Regional Expenditure Realization Acceleration Coordination Meeting at the Ministry of Home Affairs building on Monday (December 5), as reported by *Katadata.co.id*.

Arief said that the National Food Agency continues to implement a program to ensure the availability of medium-grain rice for Christmas and New Year. This is done by monitoring the Cipinang Main Rice Market, which is a rice center and one of the national barometers.

The Ministry of Trade stated that it has given permission to the State Logistics Agency (Perum Bulog) to import 500,000 tons of rice this year. This rice import is an effort to secure government rice reserves, which are below the normal level of 1.2 million tons.

Trade Minister Zulkifli Hasan said that he had signed the import permit letter from Coordinating Minister for Economic Affairs Airlangga Hartarto and Bulog.

(read: 10 Provinces with the Highest Medium-Grain Rice Prices in Early December 2022)