July 1, 2009

Indonesia is not ready to compete in a free market because the mechanism involved poses difficulties to various parties, according to the food logistic agency on Tuesday (Jun 30). 

Indonesia still needs the state logistic agency (BULOG) to play more roles in maintaining the stability of supply and price of basic commodities such as soy, said the agency's chairman Mustafa Abu Bakar.

The problems with free market mechanism also reveals a need for the government to make a comprehensive and integrated food policy through an agribusiness approach to develop Indonesia's agricultural industry, he said.

The government should also show commitment and consistency in enforcing and guarding the national food security, including policies to increase soy productivity and production, Mustafa said.

Indonesia should stabilise soy prices and make it affordable by guaranteeing supply stability to prevent market exploitation, he said.