16th July 2010. Jakarta (ANTARA News) - The government is to give State Logistics Agency (Bulog) liberty to intervene in the rice market to reduce rice price volatility in the runup to Ramadhan (Muslim fasting month), a spokesperson said. "We are going to give Bulog the liberty to conduct rice market operations as already indicated by Coordinating Minister for Economic Affairs Hatta Rajasa," Trade Minister Mari Elka Pangestu said here on Thursday.
Speaking after attending a thanksgiving ceremony for the success of the Indonesian Pavilion at the World Expo 2010 in Shanghari, China, Mari said the government would give Bulog more leeway and flexibility to conduct rice market operations. She said if rice prices continued to rise, Bulog would be permitted to operate in the rice market without waiting for a recommendation from the Trade Ministry or until rice prices had risen by 10 percent.
"Bulog can decide to conduct market operations if rice prices continue to edge up to a certain level," the minister said. Earlier, Director General of Domestic Trade at the Trade Ministry Subagyo said the government would give Bulog oermission to conduct market operations if rice prices continued to increase. Mari Pangestu also said the government had instructed Bulog to monitor rice price deve;opments and conduct market operations in areas where it thought it needed to intervene in the market.
"Rice market operations are a matter of urgency. We have instructed Bulog to monitor developments in areas where rice prices are tending to rise and immediately conduct market operations," Mari said. According to her, Bulog now had a stock of 500,000 tons of rice for market operations, and the volume was considered sufficient to overcome any extreme price fluctuation. "Rice market operations are still an effective instrument, and 500,000 tons of rice is not bad and it can influence 8-10 percent of rice prices," Pangestu said.(*)
