Sri Mulyani Signs Guarantee Rules, National Food Reserves Are Safer

JAKARTA The government has issued a financial guarantee regulation in order to strengthen the Government's Food Reserve Stock (CPP) through the Minister of Finance Regulation (PMK) Number 34 of 2023.

The regulation, which was signed by the Minister of Finance Sri Mulyani on March 23, 2023, regulates various aspects ranging from government guarantee procedures, government support for business entity assignments, settlements due to guarantee implementation, management of the risk of default, as well as bookkeeping and reporting of the implementation of assignments.

Through these regulations, Perum Bulog and BUMN Food can apply for bank credit with interest subsidies for CPP management with guarantees from the government through the Ministry of Finance.

Head of the National Food Agency Arief Prasetyo Adi said the steps taken were part of a national food stock strengthening scheme regulated through a loan interest subsidy mechanism.

"This guarantee is needed to ensure subsidy financing for strengthening CPP stocks managed by Bulog and ID FOOD as offtakers for farmers' products and fishermen so that they can run well based on the principle of prudence," he said in a written statement, Friday, April 7.

Arief appreciated the Ministry of Finance for issuing two follow-up regulations related to Presidential Decree 125 of 2022 concerning CPP Management.

"High appreciation for the Ministry of Finance because we hope that these two regulations will provide guidance in efforts to strengthen CPP for national food security," he said.

Arief explained, the initial ceiling provided by the Association of State Banks (Himbara) was IDR 3 trillion. Of this figure, IDR 1 trillion is for Bulog in the context of managing CPP for rice, corn, and soybeans.

Meanwhile, IDR 2 trillion for ID FOOD in the context of managing CPP for chicken meat and eggs, ruminant meat, consumption sugar, cooking oil, shallots and garlic, and fish.

"Especially in providing the Rp 3 trillion ceiling, the Ministry of Finance guarantees Himbara so that it can be realized as a low-cost loan for RNI or ID FOOD, of course, with various requirements that must be met," he said.

Arief added that the allocation of these funds was not just money that ran out, because this is a Government Food Reserve managed by Bulog and ID FOOD.

"So from this assignment there is a turnover where this food SOE is an offtaker for the products of farmers and fishermen and is used to strengthen CPP. Now this CPP is used, among others, to stabilize supply and prices, food assistance and others. With this, we are optimistic that an integrated food ecosystem can be realized in a sustainable manner," he concluded.