Bulog’s packaging factory plan risks diverting focus from core mandate
Industry representatives estimated that Bulog needed to build factories with production capacity of 1,500 to 2,000 tonnes per month and a workforce of 1,000 to 1,500 people, if it wanted to pursue the plan.
Bulog, the State Logistics Agency of Indonesia, is considering building its own plastic sack factories to address its growing demand for rice packaging. Industry representatives estimate that the agency would require factories with production capacities of 1,500 to 2,000 tonnes per month and employ 1,000 to 1,500 people. The Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas) warns that such a plan could divert resources from Bulog's core food security mandate, jeopardizing overall profitability.
Inaplas's secretary-general, Fajar Budiono, believes that domestic manufacturers already possess sufficient capacity to meet Bulog's needs, with surplus production available for export. He cautions that the initiative may ultimately increase costs due to factors like unsuitable machinery, inefficient factory locations, and uncompetitive operating costs.
Bulog announced its plan to build plastic sack factories across Indonesia's major islands, commencing with a pilot project in Jakarta, to meet its increasing rice packaging requirements. As of October 8, Bulog had procured 4.12 million tonnes of rice equivalent, exceeding the government's 4 million-tonne target.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
