WORLD TRADE  
ORGANIZATION  G/STR/N/10/IDN 
23 August 2004 
 (04-3509) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a)  
of the GATT 1994 and Paragra ph 1 of the Understanding on  
the Interpretation of Article XVII  
 
INDONESIA 
  
 The following communication, dated 16 August 2004,  is being circulated at the request of the 
Delegation of Indonesia.  
__________ 
 
 Pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, I have the honour to submit herewith the notification regarding the 
New and Full Notification on State Trading.  Please find attached the replies to the Questionnaire in 
document G/STR/3/Rev.1. G/STR/N/10/IDN 
Page 2  
 
 QUESTIONNAIRE ON STATE TRADING 
 
PERUM BULOG 
 
Revision
 
 
I. ENUMERATION OF STATE TRADING ENTERPRISE 
 A. Identification of State Trading Enterprise 
  Perum Bulog, as State Trading Enterprise. 
 
B. Description of products affected (incl uding tariff item number(s) encompassed in 
product description) 
  Rice (HS 10 06). 
 
II. REASON AND PURPOSE  
 
A. Reason or purpose for establishing an d/or maintaining state trading enterprise 
 
• The purpose of establishing Perum Bulog as a St ate Trading Enterprise (STE), is to support 
domestic rice producers, to stabilize the price of rice at consumer and producer levels; 
 
• In implementing its statutory functions, the agency engages in domestic procurement, 
sales/distribution, import/export and management of rice reserve stockholding. 
 
B. Summary of legal basis for granting the rele vant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers 
 
 Perum Bulog is governed by recent State Trading Enterprise Law No. 9/1969, the provisions 
of Food Law No. 7/1996, and by Presidential Inst ruction No. 9/2002.  Bulog was established under 
the Presidential Decree No. 114/U/Kep/5/1967, Presidential Decree No. 3/2002 and, since 1993, 
Bulog was transformed from a non-departmental gove rnment agency into a state-owned enterprise 
(Perum Bulog) by Government Regulation (PP) No. 7/2003.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
 A. Summary statement providing overview of operations of the state trading enterprise  
 
• Managing imports for price stabilization and food security purposes; 
• Ensuring domestic rice price stabilization; 
• Conducting domestic paddy/rice procurem ent for defending guaranteed price; 
• Maintaining national reserve stockholding for food security purposes; 
• Distributing rice for the poor and food insecure family, internally displaced persons, or for 
people in disaster areas due to natural calamities. 
 
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise 
 
• Undertake the government mandate to import a nd distribute rice, maintain national rice 
reserve stock for the price stabilization programme, and for food security purposes;  G/STR/N/10/IDN 
 Page 3 
 
 
  
• In conducting its operation, Bulog's source of funding comes from the state budget and 
dominantly from commercial credit guaranteed by the government. 
 
C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and condition for participation 
 
 Private sectors as well as STE Perum Bulog are given equal rights to the import and export of 
food commodity, subject to special restrictions or guidelines set by the government.  
D. How import/export levels are established by the state trading enterprise  
 
 The general rules for the import and export of  rice is that such activities are very much 
determined by various factors, among others:  level of domestic rice production, demand of rice, 
government food policy, etc.  Perum Bulog is only an implementing government agency to import or 
export rice.  Should there be a lack of supply based on projected production, import of rice is 
necessary.  On the other hand, if ample supply is av ailable due to good harvest and the price of rice is 
right, export can be carried out.  
E. How export prices are determined  
 
 Under the national regulations, the prices ca n be based on agreed types of transactions 
between both parties by considering many f actors through tendering and/or others. 
 
F. How the resale prices of imported products are determined  
 
 Based on prevailing domestic prices in order to avoid market disruption. 
 
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether 
the state trading enterprise is used to fulfil contractual obligations entered into by the 
government 
 
 Perum Bulog as an implementing government agency negotiates long-term contracts or carries-out transactions to fulfil contractual ob ligations entered into by the government, and 
implements the bilateral long-term contracts on G to G basis, counter trade, food aid, etc. 
 
H. Brief description of market structure  
  Since the government maintains the relatively li beral rice trade, there are a number of entities 
involved in the rice business, including marketing and processing.  The Government has also encouraged private sectors and cooperatives in local  markets to be more competitive.  When the 
market does not work well, especially in harvest season, Perum Bulog intervenes in the market and 
smoothes out the price fluctuations. 
 
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I-III)  
 
 See attached Tables I, II and III.   
 
  G/STR/N/10/IDN 
Page 4  
 
 V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
 
 -  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE) 
  - 
  
  G/STR/N/10/IDN
 Page 5TABLE I 
 
STATE TRADING:  BULOG 
 
STATISTICAL INFORMATION, IMPORTS4 
 
Year Description of product(s) 
(including HS number(s)) Total quantity 
imported 
(MT) Quantity imported by 
state trading 
enterprise 
(MT) Average import 
price1 
(US$/MT) Average 
representative 
domestic sales price2 
(US$/MT) Mark up National 
production3 
(MT) 
1 2 3 4 5 6 7 8 
2001 
2002 2003 Rice 
(HS 1006) 1,404,051 
3,707,037 2,737,309 68,737 
1,000,586 
655,126 173 
195 202 209 
265 289  28,702,217 
29,287,338 29,622,439 
Average  2,616,132 574,816   - 29,203,998 
 Notes
: 
 
 1Rice price f.o.b. at Bangkok for 25 per cent broken plus  insurance and transportation costs (US$20/MT).   
 2Price of rice (quality IR III) at PIC (Cipinang Wholesale Market, Jakarta). 
 3Total production less 10 per cent for seed, animal feed, loss.  Revised data for 2001 and preliminary data for 2003. 
 4Revised data for total imports, imported by STE, and average import price for 2001. 
 Sources
: 
 (a) TRR (The Rice Report) for total imports. 
(b) Grain Report USDA for import price. 
(c) Bulog for domestic sales price at wholesale PIC (C ipinang Wholesale Market, Jakarta);  and import by STE. 
(d) CBS (Central Bureau of Statistics) for national production.  
 G/STR/N/10/IDN 
Page 6 TABLE II 
 
STATE TRADING:  BULOG 
 
STATISTICAL INFORMATION, EXPORTS  
 
Year Description of product(s) 
(including HS number(s)) Total quantity 
exported 
(MT) Quantity exported by 
state trading 
enterprise 
(MT) Average 
procurement price 
(US$/MT) Average 
representative 
domestic sales price1 
(US$/MT) Average export 
price (US$/MT) National 
production2 
(MT) 
1 2 3 4 5 6 7 8 
2001 
2002 2003 Rice 
(HS 1006) None 
None None None 
None None None 
None None 209 
265 289 None 
None None 28,702,217 
29,287,338 29,622,439 
Average  None None None 254 None 29,203,998 
 Notes
: 
  
1Price of rice (quality IR III) at PIC (Cipinang Wholesale Market, Jakarta). 
 2Total production less 10 per cent for seed, animal feed, loss.  Revised data for 2001 and preliminary data for 2003. 
 
 Sources
: 
 (a) TRR (The Rice Report) for total imports. (b) Grain Report USDA for import price. 
(c) Bulog for domestic sales price at wholesale PIC (C ipinang Wholesale Market, Jakarta);  and import by STE. 
(d) CBS (Central Bureau of Statistics) for national production.   
  G/STR/N/10/IDN
 Page 7TABLE III 
 
STATE TRADING:  BULOG 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
Year Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading 
enterprises 
(MT) National production1 
(MT) Domestic sales by state 
trading enterprise2 
(MT) National consumption 
(MT) 
1 2 3 4 5 6 
2001 2002 2003 Rice 
(HS 1006) 2,010,791 
2,131,608 2,008,954 28,702,217 
29,287,338 29,622,439 2,201,053 
2,643,226 2,353,343 32,771,246 
33,073,152 33,372,463 
Average  2,050,451 29,203,998 2,399,207 33,072,287 
 
Notes : 
 
 1Total production less 10 per cent for seed, animal feed, loss, et c.  Revised data for 2001 and preliminary data for 2003. 
 2Revised data for domestic sales for 2001. 
 Sources
: 
 
(1) Bulog for domestic purchases and domestic sales. (2) CBS (Central Bureau of Statistics) for national production. (3) Ministry of Agriculture for national consumption.  
 
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