REPUBLIKA.CO.ID, JAKARTA – Perum Bulog (National Logistic Agency) will prepare 30 trillion IDR budget for absorbing farmer’s rice. Bulog is optimistic the budget will cover 4.5 million tonnes rice in 2012 after the releasing of Presidential Instruction (Inpres) in Government Purchase Price (HPP) of rice.

Rice procurement was using commercial credit from banking, the General Director of Perum Bulog, Soetarto Alimoeso, said on Thursday. “Thus, the budget prepared is based on the needs,” he said.

Bulog calculates the budget by assuming of of 6.6 million tonnes of rice with new HPP of 6.600 IDR per kilogram.

Bulog commits to maximize its capacity in absorbing farmer’s rice and unhulled rice. The head of farmers and fishermen association or KTNA, Winarno Tohir, predicts Perum Bulog will face difficulty in absorbing farmer’s rice cue to some challenging issues such as the fuel price hike, basic tariff of electricity, and toll tariff. 

Tohir calculates, those challenges undermine Bulog’s absorbing capacity to 50 percent from the initial target. And without those challenges, Bulog might be able to absorb 75 percent of the target.  

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