The story
Bulog was formed on 10 May 1967 following Suharto's rise to power. Its initial purpose was to secure food supply following the chaos that followed Sukarno's fall, when inflation reached 650 percent in 1966. In 1969, its authorities expanded to price stabilization with the company's rice stocks acting as a buffer stock and it controlled rice imports and exports to stabilize market prices. In 1987, it was assigned to control multiple food commodities. Initially, the distribution of rice covered mainly civil servants (including military personnel), who received a 63% share of the 1.13 million tons of rice distributed by Bulog in 1970. However, market distribution grew, with 1.86 million of 2.66 million tons of rice distributed in 1980 going to open market operations.
Following the 1997 Asian financial crisis and Indonesia's acceptance of an economic rescue package from the IMF, Bulog's authority was reduced to a smaller basket of commodities.
From Wikipedia’s article on Bulog, shared under CC BY-SA 4.0.4