JAKARTA - The National Food Agency (BPN) issued a regulation regarding the implementation of sugar and cooking oil reserves through the National Food Agency Regulation (Perbadan) Number 4 of 2023 concerning the Implementation of Government Consumption Sugar Reserves (CGKP) and Government Cooking Oil Reserves (CGMP).
Head of NFA Arief Prasetyo Adi revealed that sugar and cooking oil are two of the eleven food commodities that are under the authority of NFA and are regulated in Presidential Decree 125 of 2022 concerning the Implementation of Government Food Reserves (CPP).
"So we clean it up one by one, previously we have issued a body regarding CPP for rice, corn and soybean commodities. Now we have regulations governing sugar reserves and cooking oil. With strong food reserves, we can intervene for supply stabilization and food prices, especially in certain situations such as price fluctuations, natural disasters and other emergency situations," said Arief in a written statement, Saturday, March 25.
He explained, in the agency, the implementation of CGKP and CGMP through the assignment to Food SOEs and/or Perum Bulog which includes the Determination of the Number, Implementation, and Monitoring, Evaluation, and Reporting, to Funding.
The implementation of CGKP and CMGP as regulated in this agency consists of three main parts, namely Procurement, Management, and Distribution. As for the financing aspect, the implementation of CGKP and CMGP is sourced in the APBN as well as other legitimate and non-binding sources in accordance with the provisions of the legislation, including through the provision of credit and/or interest subsidies to Perum Bulog and BUMN Food.
In an effort to carry out monitoring and evaluation of the implementation of CGKP and CMGP, in addition to involving elements of the Ministry of SOEs and regional apparatus organizations in the food sector, NFA also involved the Indonesian National Police Task Force (Polri Food Task Force) in terms of its supervision.
"Of course, in its implementation we cannot do it alone. It needs synergy with all elements, including in its supervision it also involves various relevant stakeholders. Therefore, to ensure that the implementation goes well, we form a Monitoring and Evaluation Team that involves elements of the Ministry of SOEs, Regional Food OPDs, and the National Police Food Task Force through the coordination of the Deputy for Food Availability and Stabilization," said Arief.
Regarding its management, Arief said that the Food SOE will implement a dynamic stock mechanism and use technology by considering distribution plans, the sugar cane milling season period, lead time, and economic value for CGKP, as well as distribution plans, lead time, and economic value for CMGP.
As for CGKP and CMGP which have the potential or have decreased in quality over 6 months, it can be released according to the results of the review from the Government Internal Supervisory Apparatus and institutions that organize government affairs in the field of financial and development supervision.
"The application of the dynamic stock mechanism in the management of CGKP and CMGP is almost the same as other CPP commodities such as rice and corn, but the difference is specifically for CGKP, it is done by considering the sugar cane milling season period," he added.
Arief further revealed that NFA will issue derivative regulations from Per Agency 4/2023 concerning the Implementation of CGKP and CMGP for the operation of procurement, namely Government Purchase Prices (HPP) for CGKP and CMGP and Flexibility, which of course prioritize domestic production.
As for the distribution, CGKP and CMGP can be used for anticipation, mitigation, and/or implementation of price stabilization, provision of assistance, and other needs set by the government through the Head of the National Food Agency based on the results of a ministerial/head institution coordination meeting.
As is known in order to maintain the availability and stability of food throughout the territory of the Republic of Indonesia, through Presidential Regulation Number 125 of 2022 concerning the Implementation of CPP, President Joko Widodo has provided control and management of CPP to Perum Bulog and BUMN Food.
For this reason, President Jokowi has assigned the Head of the National Food Agency to prepare all the necessary regulations and mechanisms to create a strong and sustainable national food ecosystem amid the threat of a global food crisis.
With the issuance of the Regulation of Entities 4/2023 concerning the Implementation of CGKP and CMGP through the assignment of NFA, the assigned Food SOEs will start procuring, managing, and distributing.
Meanwhile, the determination of the number and quality standards of CGKP and CMGP will be determined by the Head of NFA based on a coordination meeting at the ministerial/head of the institution.
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