Bulog's 100 New Warehouses Enter Feasibility Study Stage, First Groundbreaking in Bontang
Bulog says its plan to build 100 new warehouses has entered the feasibility study, budgeting and design stages, with the first groundbreaking planned in Bontang, East Kalimantan. The company cites full storage capacity after rice reserves peaked at 5.4 million tonnes.
Bulog President Director said on 10 November that the agency's plan to build 100 new warehouses has entered the feasibility study, budgeting and detailed engineering design stages, with the first groundbreaking planned in Bontang, East Kalimantan, “soon”.
The company attributed the program to tight storage. Government rice reserves peaked at 5.4 million tonnes in September, filling both Bulog-owned warehouses and rented space and pushing rental costs up. Owned capacity currently stands at 3 million tonnes, with more than another 3 million tonnes rented. The 100 new warehouses are expected to add around 0.25 million tonnes, lifting owned capacity to 3.25 million tonnes. Budget support of around Rp5 trillion is being provided by the President and the Finance Ministry, according to the company.
Bulog also plans to apply storage technology developed by BRIN, which it says can preserve grain for up to around two years without fumigation. As of 10 November the company held 4.59 million tonnes of stock, down from the September peak — figures stated by the company.