JAKARTA (Indonesia Today) – The State Logistics Agency (Bulog) plans to set up 3 subsidiaries, spinned-off from its current business units , Investor Daily reported this morning.

Sutarto Alimoeso, Bulog’s president director, said in a hearing with Commission IV of House of Representative on Monday (Sept 10) that for on farm Bulog expects to plant 1 million hectares of rice field to lower dependance on partners’ rice supply.

“The management for on farm production has started this year on 30,000 hectares from land target of 104,000 hectares,” he said, adding Bulog will also increase the management of business unit for grain and rice.

Sutarto added the new unit will also handle distribution of rice. “In principle, Bulog Mart is a distribution center, not only a retail,” he expalined.

Bulog targets to have 2.6 million tons of rice stock until end 2012. Currently, the highest stock of rice is occured in East Java (900,000 tons), followed by Central Java (660,000), West Java (490,000), South Sulawesi (347,000), West Nusa Tenggara (132,000) and other regions (less than 130,000 tons). (hans@theindonesiatoday.com)