The crisis has resulted in drastic increases in the prices of basic essentials in the country of more than 200 million people spread over some 17,000 islands.

The price of rice has trebled in the past year.

In recent weeks, growing numbers of hungry Indonesians have plundered warehouses, plantations and robbed food trucks in a desperate attempt to find something to eat.

"We are ready to provide ships to transport rice. What we need is transparency. Just tell us when the ship is needed, where to go and how much rice is to be transported," Barens Saragih, secretary-general of the Indonesian National Shipowners Association (Insa), told Reuters on Wednesday.

"We have 40 ships ready to ship rice and we have also suggested the government buy rice on an FOB basis," headded.

Indonesia plans to import 4.1 million tonnes of rice this year. It is completing a tender to buy 600,000 tonnes of rice from China, Thailand, Vietnam and Myanmar.

The government and the International Monetary Fund agreed last week to improve the food supply situation by allowing private firms to import rice and expand the provision of subsidised rice to at least 7.5 million families by October from the existing two million.

Rice is being offered in the market at 3,550 rupiah/kg ($0.32), slightly lower than last week's 4,000 rupiah/kg ($0.36) because of continuing market operations by the Bulog state commodity regulator.

The rupiah was quoted at 10,800/11,000 against the US dollar at 0745 GMT.

"The main problem is distribution. When former president Suharto was still around, rice shipment was monopolised by the Salim Group. Now the ships have gone along with Suharto," said one grain trader, referring to the country's conglomerate Salim Group, which was well connected with Suharto.

Suhartostepped down in May after months of student protests and an explosion of rioting in Jakarta which left 1,200 dead. He was replaced by his deputy, BJ Habibie.

"We really have to improve the distribution. In Singapore, for instance, once goods arrive in the Port then trucks will immediately take them away," said the trader.

"But here, goods can wait for days before being transported outside the Port and this is costly," he said. Rice is distributed by Bulog, which has branches in the country's 27 provinces.

The agency, long accused of inefficiency, was thrown into the spotlight this month after the arrest of a former Bulog official in connection an alleged scheme to smuggle rice out of the country.

The agriculture attache at the US embassy in Jakarta said in a report issued on Tuesday that overall stock conditions in Indonesia appeared adequate due to steady imports and a government announcement that further imports would be sought.

But the report said there were several factors which led top ricehikes, including indications of abuse by Bulog, leakage through exports, hoarding and speculation.

A spokesman for trade and industry minister Rahardi Ramelan said the government planned to distribute cheap rice to poor families at prices of 1,000 rupiah/kg ($0.09) and that each family would be entitled to secure 10 kg each month.

"The government is serious in dealing with this rice problem. We are trying to find out the best way to distribute rice. In eastern Indonesia for instance, one area is only accessible through a combination of land and sea transport," he said.