Rice Export Plan Canceled, Bulog CEO Confirms
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2 July 2019 19:15 WIB
TEMPO.CO, Jakarta - Bulog Public Service Company CEO Budi Waseso said their plan to export rice could not continue. The plan is challenged by the high cost of rice production, which is too expensive to generate sizeable profits.
"The export plan has to be canceled, to be honest, because the cost is not worth it. In Indonesia, rice production is still very conventional while in other countries like Vietnam it is fully mechanized," Budi told the media in Jakarta, Tuesday, July 2.
Budi said that the export plan emerged after he saw abundant production of the staple food at the farmers' level, coupled with reports of cheap grain prices in the domestic market.
However, after reviewing the cost of production, it is revealed to be too expensive. And thus, the price of Indonesian rice would not be able to compete with other countries'.
Therefore, Budi said, it is impossible for Bulog to sell the rice for little to no profits. It would be better to use or sell the rice in the domestic market and save what's left as reserves.
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