Indonesia's Bulog Claims as 'Victim' of Allegation for Mark-Up of Rice Import from Vietnam

TEMPO.CO, Jakarta - The Indonesian food distribution state-owned corporation Bulog claimed to have been the victim of “marking up” allegations on rice imports from Vietnam, which was reported to the Corruption Eradication Commission (KPK).

“Bulog is the victim of this baseless report which was intended to form bad opinions (on Bulog),” said Bulog Corporate Secretary Arwakhudin Widiarso in a statement in Jakarta, on Sunday, July 7, 2024.

The price mark-up allegation was reported by the People's Democracy Study (SDR) about an offer from a Vietnamese company called Tan Long Group.

According to Widiarso, the baseless report would harm the reputation that Bulog has fostered. "Especially when the company is actively improving itself by transforming all of its business lines," he said.

Widiarso explained that Bulog would have fined the Vietnam-based company if it offered low rice prices but failed to deliver the goods while participating in the auction. "It is easy to claim a cheap offer if the goods were not real in the first place and have never been delivered," added Widiarso.

On a separate occasion, legal expert Shanti Dewi Mulyaraharjani said that without evidence, the report to KPK would be a public deception that hindered further legal process. Additionally, the presumption of innocence principle must be prioritized as long as there’s no binding verdict to prevent misleading the public.

Meanwhile, the Director of Supply Chain and Public Services at Bulog, Mokhamad Suyamto, responded to the mark-up accusations. He revealed that the Vietnamese company Tan Long Group had never offered prices at this year’s bidding. "They have no import contract with us this year,” Suyamto said. 

According to him, the Vietnamese company in question did register itself as one of Bulog’s project partners but has never offered a price to Bulog. Thus, Suyamto lamented the baseless reports of rice price markup. 

Meanwhile, the Director of Transformation and Inter-Institutional Relations at Bulog, Sonya Mamoriska, said Bulog was assigned to import 3.6 million tons of rice in 2024 by the Ministry of Trade. "We have imported 2.2 million tons from January to May,” said Sonya. Until the end of June, Sonya said Bulog had absorbed 800,000 tons of domestic rice and was optimistic to surpass the government’s target and achieve 1 million tons of rice absorption. 

ANTARA

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