From Remarkable Success Stories to Troubling Present: The Case of BULOG in Indonesia - From Parastatals to Private Trade - page 149

TABLE 6.4 Summary of food policy reforms in Indonesia since 1998

Date Policy reform Objective(s) Outcome(s)

1998 Trade liberalization in rice To enhance efficiency in rice trade Rice import soared to 5.8 million tons, the

(Letter of Intent to the IMF) To eliminate BULOG's monopoly power largest in known history.

1999 Removal of fertilizer subsidy To improve budgetary efficiency Fertilizer price increased, and application

(Presidential Decree 8/1998) To contribute to an increase in production rates declined.

efficiency

2000 Tariff protection on rice and sugar To ensure farmers' production incentives Total import decreased, but amount of

(MoF Decree 368/KMK.01/1999) To restore confidence in productivity increase unreported rice imports increased.

2001 New floor price of rice To guarantee minimum price for farmers Farmgate price did not fall considerably, but

(Presidential Decree 9/2001) rice smuggling increased.

2002 Rice-for-the-Poor (RASKIN) To sharpen the target of rice subsidies Provides help to mostly poor households in

(New forms of market operation) To improve special market operation of rice urban areas. There is controversy about the

database.

2003 Procurement Price Policy To adjust some changes in rice stabilization Farmgate price in most cases remains below

(Presidential Decree 9/2003) policy reference price.

2003 New format of Perum BULOG To improve efficiency in rice distribution Efficiency and good governance within

(Government Regulation 7/2003) and trade BULOG continue to be questioned.

SOURCES : Based on Arifin, Oktaviani, and Hartati (2002); Tabor, Sawit, and Dillon (2002); Mellor et al. (2003); and Arifin (2004).