Low Bulog Rice Absorption Despite Entering the Main Harvest Season

The Indonesian state-owned logistics agency, Perusahaan Umum Badan Urusan Logistik (Perum Bulog), has only absorbed 143,000 tons of rice since the main harvest season (January-March) until April 11, 2023.

According to *Katadata*, this absorption rate is extremely low and insufficient to meet Bulog's distribution needs, including food aid and market stabilization operations.

"From the beginning of the main harvest season until now, we have absorbed 143,000 tons, and we will continue to strive to absorb more," said Budi Waseso, President Director of Perum Bulog, in North Jakarta on Wednesday (April 13, 2023).

Buwas, as he is known, acknowledged that the absorption figure is very low. Bulog is tasked with absorbing 2.4 million tons of rice by the end of 2023, with 70%, or 1.68 million tons, targeted for absorption during the main harvest season.

The current absorption rate is far below the planned 640,000 tons of rice needed for food aid every three months.

Data from the Ministry of Agriculture shows that Bulog's rice absorption has consistently declined over the past five years.

In 2018, Bulog's absorption was 1,488,584 tons; in 2019, 1,201,264 tons; in 2020, 1,256,507 tons; and in 2021, 1,216,311 tons. Bulog's absorption from January to November 2022 reached 900,802 tons.

Dwi Andreas, a professor at Bogor Agricultural University, stated that Bulog's low stock levels during the main harvest season, when rice supply from farmers is abundant, indicate extremely low absorption of paddy rice or rice from farmers.

Dwi added that the low rice stock should not be happening, given the rice imports at the beginning of 2023.

"This means there is a crucial problem causing Bulog's absorption of domestic rice production to be extremely low," said Dwi.

(See also: A Year Before the Election, Indonesia's Rice Imports Surge)