BULOG (Indonesia's State owned Logistics Agency) is created in 1967, which mainly functions as government agency that to ensure the supply and stabilize the price of staple, if the price of rice is rising, BULOG will import the supply from Thailand and Vietnam and if the price is falling, BULOG will buy from the market and stock it in their warehouse.
As time progress, BULOG face some challenges as this agency is not designed for business. It was created in 1967, back then Indonesia had 150 million people, and now Indonesia has 267 million people, and the paddy field growth from 1967 to 2014 is only from 7 million Hectare (ha) to 9 million hectare (ha) but from 2015 onward we see reduction in paddy field area, while the bio-technology help to ensure higher productivity per hectare from 1,76 ton/ha in 1967 to 5 ton/ha in 2019. Although, in general the data is comforting but the growth trend for paddy field and productivity has flatten since 2015. We predict BULOG will have difficulties to keep up with rice demand in near future. If this trend continues, one day rice could be a luxury staple and could be replaced by synthetic rice.
The problem with BULOG is they always over import rice every year and so they waste 30000 ton of decay rice each year. That is why we create rice based stable coin RIC so people can have access to rice easily.