G/STR/N/19/IDN  
 
28 February 2023  
(23-1386) Page: 1/6 
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 PARAGRAPH 1 OF THE UNDERSTANDING ON  THE 
INTERPRETATION OF ARTICLE XVII  
INDONESIA  
The following communication, dated  and received on 23  February 2023, 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 of the GATT 1994, and in res ponse to the call for notifications set forth 
in document  G/STR/N/19 , Indonesia makes the following new and full notification of its state trading 
enterprises for 2020 and 2021.  
I. ENUMERATION OF STATE TRADING ENTERPRISE  
A. Identification of State Trading Ent erprise  
Perum BULOG, as a State Trading Enterprise.  
B. Description of products affected (including tariff item number(s) encompassed in the product 
description)  
Rice (HS 1006).  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
• The purpose of establishing Perum BULOG as a State Trading Enterprise (STE) is to 
conduct good quality and sufficient staple food logistics businesses for all society's 
needs; and in some cases, to conduct particular ta sks given by the Government in 
light of stabilizing staple food prices, managing government food reserves and 
distributing staple food to low income people, particularly rice and other staple food 
items determined by the Government in the pursuit of achiev ing national food security.  
• In implementing its statutory functions, the agency engages in domestic procurement, 
sales/distribution, import/export and public stockholding.  
B. Summary of legal basis for granting the relevant exclusive or special rights or priv ileges, 
including legal provisions and summary of statutory or constitutional powers  
The operations of Perum BULOG are governed  by the recent  State -Owned  Enterprise Law 
No. 19/2003, the provisions of Food Law No. 18/2012, the Presidential Instruction No. 5 /2015  and 
the President Regulation No. 48/2016 and the Minister of Trade Regulation No.  20/2020. BULOG was 
established under the Presidential Decree No. 114/U/Kep/5/1967. Since 2003 BULOG was G/STR/N/19/IDN  
 
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  transformed from a non -departmental government agency into a Sta te-Owned Enterprise, namely 
Perum BULOG, by Government Regulation No. 7/2003, as amended by Government Regulation 
No. 61/2003.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operations of the sta te trading enterprise  
• Conducting domestic paddy/rice procurement for defending guaranteed price;  
• ensuring domestic rice price stabilization;  
• carrying out domestic paddy/rice procurement with the Government Purchase Price 
(HPP);  
• distributing rice for poor and vulnerable people, Internally displaced persons (IDPs), 
and victims of natural calamities and social conflicts;  
• maintaining national reserve stockholding for food security purposes;  
• undertake government mandate to import for p rice stabilization to ensure food 
security objective.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise  
• Undertake the government mandate to import/export and distribute rice, maintain 
national public stock f or the price stabilization programme and food security purposes;  
• in conducting its operation, Perum BULOG's source of funding comes from the 
state budget and commercial credit based on Government  Regulations No. 13/2016.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and condition for participation  
Private sector as well as STE Perum BULOG are given equal rights to the import and export of food 
commodity, subject to special restrictions or g uidelines set by the government.  
D. How import/export levels are established by the state trading enterprise  
General provisions regarding the import and export of rice carried out by Perum BULOG are 
determined from the mandate of the Central Government. Perum  BULOG is only an STE that carries 
out the mandate as written in point II.B. 
E. How export prices are determined  
Under the national regulations, the prices can be based on agreed types of transactions between 
both parties by considering many factors through t endering and/or others. Up until this moment, 
Perum BULOG has not been assigned by the Government of Indonesia to export rice.  
F. How the resale prices of imported products are determined  
The resale prices of imported product are determined by considering the  level of domestic rice price 
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 contracts or carries -out 
transactions to fulfil contractual obligations entered into by the government, such as Government to 
Government basis, counter trade, food aid, etc.  G/STR/N/19/IDN  
 
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  H. Brief description of mark et structure  
Ever since the liberalization of rice trade, the Government of Indonesia has encouraged the private 
sector and cooperatives to participate in the local rice market. This has created a competitive market 
involving many players in the rice indus try, including rice producers, collectors, processors and 
traders. When the market fails to function properly, especially at times when prices tend to be 
unstable at producer or consumer level, Perum BULOG intervenes in the market and smooths out 
the price  fluctuations.  
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I -III) 
See attached Tables I, II and III.  
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)    
  G/STR/N/19/IDN  
 
- 4 - TABLE I  
STATE TRADING: BULOG  
STATISTICAL INFORMATION, IMPORTS  
Year  Description of 
Products(s) (Including 
HS Number(s))  Total Quantity 
Imported (MT)  Quantity imported 
by state trading 
enterprise (MT)  Average Import 
Price1) (USD/MT)  Average 
Representative 
Price2) 
(USD/MT)  Mark Up  National 
Production3) (MT)  
1 2 3 4 5 6 7 8 
2020  Rice (HS 1006)  355.711  None 603 594  34.986.419  
2021  406.741  None 560 593  34.836.671  
Average  381.226  None  582 594  34.911.545  
Notes : 
1) Rice price FOB at Bangkok for 25% broken plus insurance & transportation cost.  
2) Price of rice (quality IR III) at PIC (Cipinang Wholesale Market, Jakarta).  
3) Total production less 10% for seed, animal feed, loss, etc.  
Sources:  
a) BPS (Central Bureau of Statistics) for total national import and national production.  
b) Rice price FOB at  Bangkok  for 25% broken  plus insurance  & transportation  cost for import  price.  
c) Bulog  for domestic  sales price at wholesale PIC (Cipinang  Wholesale  Market,  Jakarta);  and import  by STE.    
  G/STR/N/19/IDN  
 
- 5 - TABLE II  
STATE TRADING: BULOG  
STATISTICAL INFORMATION, EXPORTS  
Year  Description of Products(s) 
(Including HS Number(s))  Total Quantity 
Exported (MT)  Quantity exported 
by state trading 
enterprise (MT)  Average 
Procurement Price 
(USD/MT)  Average 
Representative  
domesti c sales 
Price1) (USD/MT)  Average Export 
Price  National 
Production2) (MT)  
1 2 3 4 5 6 7 8 
2020  Rice (HS 1006)  None None 558 594 None 34.986.419  
2021  None None 577 593 None 34.836.671  
Average  None  None  568 594 None  34.911.545  
Notes:  
1) Price of rice (quality IR III) at PIC (Cipinang Wholesale Market, Jakarta).  
2) Total production less 10% for seed, animal feed, loss, etc.  
Sources:  
a) Bulog administrated price converted for procurement price.  
b) Bulog for domestic sales price at wholesale PIC (Cipinang Wholesal e Market, Jakarta); and import by STE.  
c) Ministry of Agriculture and BPS (Central Bureau of Statistics) for national production.  
    
  G/STR/N/19/IDN  
 
- 6 - TABLE III  
STATE TRADING: BULOG  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Year  Description of Products(s) 
(Including HS Number(s))  Domestic purchases by 
state trading enterprise  
(MT)  National Production1) (MT)  Domestic sales by 
state  trading enterprise  
(MT)  National Consumption (MT)  
1 2 3 4 5 6 
2020  Rice (HS 1006)  687.042  34.986.419  1.629.988  35.400.000  
2021  1.023.292  34.836.671  1.156.068  35.300.000  
Average  855.167  34.911.545  1.393.028  35.350.000  
Notes:  
1) Total production less 10% for seed, animal feed, loss, etc.  
Sources:  
a) Bulog  for domestic purchases and domestic sales.  
b) Ministry of Agriculture and BPS (Central Bureau of Statistics) for national production.  
c) Grain Report USDA for national consumption.  
 
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