Lenny Sugihat Chief of Indonesia’s food agency BULOG has been replaced from its head post by Djarot Kusumayakti, Former Bank Rakyat Indonesia director after missed target for domestic rice purchasing said the deputy state-owned enterprises minister said on Monday.
In January 2015, Lenny Sugihat has hold the charge of purchase of rice and other food staples from domestic farmers to stabilize retail prices from retiring Bulog chief Sutarto Alimoeso. The government had given a target of purchase of 4 million tones from domestic buyers in 2015 but by the end of May 2015 the agency could able to manage only purchase of 1.2 million tones said deputy minister Muhamad Zamkhani.
BULOG is Indonesia’s dominant rice buyer with an annual stock of 1.5-2 million tons by buying from both domestic and regional suppliers.
Earlier Indonesia has imported 1-2 million tons of rice from Thailand or Vietnam and since the Indonesia has replaced Sugihat, the chances of import are likely now.
Lenny Sugihat is one of the famous government official who was appointed and then replaced by President Joko Widodo, who took office last October.
Widodo’s administration is facing criticism from its people for under performance and failing to revive the weak economy of country since 2009.
Indonesia may import 1.6 million tonnes of rice this year due to high prices of rice in their country and also week monsoon forecast in Indonesia by El Nino weather pattern.
Retail rice prices in Indonesia have gained about 13 percent in the past year and industry sources expect further climbs of 5-7 percent around the Muslim festival of Ramadan, which starts in mid-June