Bulog chief says RI to export rice not for "showing off"

Banda Aceh  (ANTARA News) - National Logistics Agency (Bulog) Chief Mustafa Abubakar said Indonesia would export rice not for "showing off" its rice self-sufficnecy but because it had to dispose of a rice production surplus. 

"We will export rice not to show off nor for any political purpose but because domestic rice production in 2008 was rather good and has resulted in a surplus," Abubakar said here on Monday. 

The Bulog chief was here to attend a working meeting on rice procurement in all provinces in Sumatra. He said the government was planning to export rice also in an effort to keep the domestic rice price stable. 

"If the rice surplus is not exported, there will be an over supply in the market, and then its price will fall. Though some of the production is exported national rice stocks will remain stable," he said. 

Since 2008, Indonesia has stopped importing rice because Bulog was able to buy up 3.2 million tons of domestic farmers` rice. In 2007, Indonesia was still importing rice from Vietnam and Thailand at a volume of 1.3 million tons. 

"By stopping rice imports, the government was able to save Rp15 trillion. Most of these funds is now flowing to farmers in villages. In the past, the funds flowed to farmers in Vietnam and Thailand," the Bulog said. 

Abubakar said the government was planning to begin rice exports in March 2009. It was believed that the export would not affect stocks at home because the rice to be exported was number one quality rice. 

For stocks procurement at home, Bulog had set a target of 3.8 million tons. "We are optimistic that procurement for 2009 will reach 3.8 million tons," he said. 

Therefore, he said, it was hoped no protracted droughts, floods and pest attacks would happen this year that could affect rice plants during the planting season.