JAKARTA – The Indonesian finance ministry would not extend permit, which expired on Thursday, to import rice and the State Logistic Agency (Bulog) should rely more on domestic production for meeting its rice stockpile target, a minister said here on Thursday. The decision was made as the country had great rice harvests since February and the agriculture ministry had allowed the agency to purchase rice of any quality. “After today, Bulog must meet national rice stockpile from domestic production”, Indonesian Trade Minister Mari Elka Pangestu said. Concern over the weather phenomenon by up to this year has led Indonesia to add its rice stockpile to two million tonnes following sky rocketing chili and rice prices, which took inflation to a 21 month-high of 7.02 percent in January.
The price hike pressure, however, eased in February to 6.84 percent due to better food supply following the rice harvest. Minister Pangestu said that the national rice stockpile had currently reached 1.5 million tonnes. The Indonesian central bank kept its benchmark interest rate at 6.75 percent in its meeting to review the rate at the beginning of this month, after raising the rate by 25 basis points on February 4.
