PEOPLE HAVE ADEQUATE RICE STOCK FOR FASTING MONTH

By Andi Abdussalam

Jakarta, June 2 (Antara) - Indonesians, who will observe a month-long fast starting June 18, have an adequate stock of rice, a staple food commodity, which is now estimated at 6.97 million tons.         "What is important for us is to control the price of rice, which is now still as per our expectations," Chief Economic Minister Sofyan Djalil stated in Jakarta on Monday.         The minister expressed hope that the regional governments would work towards maintaining the purchasing power of the people, so that the national inflation rate would not increase due to the lack of food supplies.         "Yesterday, the president in a meeting urged all district/city governments to take efforts to control inflation, since if left uncontrolled, it would reduce the purchasing power of the people," the chief economic minister remarked.         According to Srie Agustina, the director general of internal trade of the Ministry of Trade, the volume of rice stock has now reached 6.97 million tons, which comprises 1.32 million tons in the State Logistics Board (Bulog) and 5.4 million tons of indicative milling stock and 246 thousand tons of indicative stock in 165 markets.        "We have a requirement of about 8.l million tons. There is still a deficit now. But, the 6.97 million tons does not include the rice produced in the May-July harvest period," the director general remarked.          In the coming May-July harvest season, there will be an additional production of 3.14 million tons, and thus, the total rice production by July 2015 will reach 10.11 million tons.         She affirmed that as the requirement will reach 8.19 million tons of rice by July 2015 and the stock will increase to 10.11 million tons, hence there will be a surplus of about 1.92 million tons.         Bulog earlier confirmed that the national rice stock was sufficient to meet the needs of the people ahead of the upcoming Islamic fasting month and Eid holiday.         "Bulog's stock is secure. Right now, the stock is adequate to meet the demand for five months," Bulog Secretary Djoni Nur Ashari stated during a press conference. He noted that Bulog's current rice stock reached 1.3 million tons, which is adequate to meet the country's needs for five months.         The company domestically procures an average of 25 thousand tons per day, or a total of 1.1 million tons out of the target of 2.754 million tons this year.        "It is hoped that the stock will continue to increase as the harvest is still continuing," he remarked.         Based on the report of the Rice Stock and Price Monitoring in the Cipinang Rice Wholesale Market (PIBC) in East Jakarta until May 25, 2015, an average stock of 2,636 tons entered the market.          The stock increased by 21.98 percent as compared to the same period last year. The distribution of rice in the markets in Jakarta and West Java as well as the inter-insular distribution reached 2,679 tons, up 13.52 percent as compared to the same period last year, which stood at 2,360 tons.          The PIBC's rice stock was recorded at 44,373 tons, up 47.91 percent of the normal stock of 30 thousand tons. The stock is adequate to meet Jakarta's rice requirement for about 14 days.          The realization of the inter-insular rice trade in the PIBC in the same period was recorded at 15,261 tons, up by 30.96 percent as compared to 11,653 tons recorded in the corresponding period last year.          Rice prices as of May 26, 2015, for all Muncul types were stable as compared to the previous week. Muncul I rice type was sold at Rp9.6 thousand per kilogram; Muncul II, at Rp8.8 thousand per kilogram; and Muncul III, at Rp8.15 thousand per kilogram. The price of IR64 rice type was also stable at Rp9.2 thousand per kilogram.         However, the IR64 II and III rice types experienced a slight increase of about 1.32-2.41 percent as compared to the previous week. IR64 II rose to Rp8.5 thousand per kilogram from Rp8.3 thousand per kilogram in the previous week and IR64 III to Rp7.7 thousand per kilogram from Rp7.6 thousand per kilogram.          Regarding the price security of rice, Bulog Secretary Djoni Nur Ashari emphasized that if necessary, Bulog is ready to conduct market operations.          "Let us just wait and observe the trend. We are ready to conduct market operations if needed," he noted.          Earlier, the Central Bureau of Statistics (BPS) recorded the May 2015 inflation at 0.5 percent, which means that the January-May calendar inflation was recorded at 0.42 percent and the year-on-year (yoy) inflation rate was at 7.15 percent.          The core component inflation was recorded at 0.23 percent, and the yoy core component inflation was at 5.04 percent.          Commodities that experienced price hikes and contributed to the inflation were red chili, race chicken, race chicken eggs, shallots, garlic, fresh fish, electricity tariff, vegetables, tomato, and cayenne pepper, among others. However, the price of rice was relatively stable and even contributed to the deflation rate.           Agriculture Minister Amran Sulaiman earlier made assurance that the rice supply was sufficient to meet the needs of the people ahead of the fasting month, which will begin in the middle of next month and Lebaran (Eid).          "It is safe. We can assure it is secure until Lebaran," he claimed.          He expressed hope that the supply would be met from the local stocks, and hence, the government does not have to import.          With regard to the price, the minister is of the viewpoint that distribution will still be the main reason for a price hike.         "In view of that, distribution must be carried out properly. We have given suggestions to Bulog. The solution is that Bulog must buy directly from the farmers and if it does that, it will be beneficial to both the farmers and consumers, as they would be able to enjoy a stable price," he added.     ***3*** (T.A014/INE) EDITED BY INE (T.A014/A/BESSR/F. Assegaf) 02-06-2015 17:14:3