Not Profit, This is Bulog's Explanation about the 7 Percent Margin

Perum Bulog confirmed that the 7 percent margin set by the Government cannot be interpreted as a company's profit, but rather as a form of compensation for the implementation of state assignments in the food sector.

Director of Finance of Perum Bulog Hendra Susanto explained that the provision of the margin was intended to ensure that the strategic assignment from the Government could be carried out continuously with the principles of professionalism and good accountability.

The Government's assignment to Perum Bulog as a food SOE is supported by a strong legal basis, this is stated in Article 128 of Law Number 18 of 2012 concerning Food, and strengthened through Article 11 of Government Regulation Number 17 of 2015 concerning Food and Nutrition Security, which states that the implementation of state assignments is accompanied by the Government's obligation to provide compensation for the costs incurred.

This provision is also in line with Presidential Instruction Number 6 of 2025, paragraph 19 letter H, which stipulates that the Government provides compensation and a reasonable margin for the assignment of procurement, management, and distribution of domestic rice or rice for the Government Rice Reserve.

In addition, this arrangement is consistent with Law Number 19 of 2003 concerning State-Owned Enterprises, which states that SOEs can receive special assignments to carry out public service functions, with the obligation of the Government to bear all costs and risks so that the financial health of SOEs is maintained.

Hendra emphasized that the margin is a state policy instrument, not business profit as in commercial business activities.

"This 7 percent margin is not Bulog's profit. This is a compensation given by the state so that strategic assignments, such as the management of the Government Food Reserve and food stabilization, can be carried out sustainably with healthy governance," Hendra said in a statement, Sunday, January 25.

In order to strengthen national food governance, the Government formed the National Food Agency (Bapanas) through Presidential Regulation Number 66 of 2021 as the executor of the mandate of Article 127 of the Food Law.

Bapanas has the authority to assign food-related tasks to food SOEs, including Perum Bulog, as well as to establish technical policies related to compensation mechanisms and assignment margins.

Specifically, in the implementation of the Government Food Reserve (CPP), Perum Bulog carries out its assignment in accordance with Presidential Regulation Number 125 of 2022.

Meanwhile, the regulation states that the Government provides compensation for all costs of implementing the CPP, including the margin set based on the principle of reasonableness.

Through the Limited Coordination Meeting (Rakortas) held on December 29, 2025 and January 12, 2026, the Government agreed on the assignment margin of 7 percent and the mechanism for paying compensation and the margin was determined by the National Food Agency.

Hendra added that certainty of regulations and compensation mechanisms are important foundations for the sustainability of Bulog's role as a state instrument, including in the use of margins for investment in the rejuvenation and modernization of post-harvest infrastructure.

"With the certainty of clear regulations and compensation mechanisms, Bulog can focus on carrying out the state's mandate in a professional, transparent, and accountable manner, in order to ensure food availability and national stability," he added.

He conveyed that Perum Bulog was committed to continuing to carry out the Government's assignment optimally as a food SOE, while maintaining healthy corporate governance and being oriented towards public interest.