Bulog's Total Debt Reaches Rp13 Trillion To State-Owned Banks, Buwas: This Must Be Paid Immediately, Otherwise, We Will Lose

Bulog President Director Budi Waseso. (Mary Handayani/VOI)

JAKARTA - President Director of Perum Bulog, Budi Waseso, revealed that the company's total debt will reach Rp. 13 trillion until 2021 to a number of state-owned banks. One of the debts is used to finance the procurement of Government Rice Reserves or CBP.

"This must be paid immediately, otherwise Bulog will lose. The longer it is paid, the more interest will increase," said Bulog President Director Budi Waseso at a press conference, Tuesday, December 28.

Unfortunately, Budi did not specify how much interest expense is currently borne by Bulog. At the same time, Budi also said that the government still owes Rp 4.5 trillion to the company.

In the process, the government through the Ministry of Finance (Kemenkeu) will pay the debt funds used by Bulog when carrying out assignments. However, the SOEs in the food sector are facing administrative constraints or the requirements set out in the Minister of Social Affairs Regulation (Permensos).

"Debt is like that, there is one obstacle, IDR 4.5 trillion (debt), we have made efforts, we have to change the Minister of Social Affairs, indeed the Ministry of Finance is ready to pay, because the requirements have not been met, there is a Ministerial regulation (Social) that must be changed, there are obstacles," he said.

However, Buwas, as Budi is called, did not specify the policy intended. It is noted that the Minister of Social Affairs which regulates the procurement of CBP is the Minister of Social Affairs Regulation Number 22 of 2019 concerning Procedures and Mechanisms for Distribution of Government Rice Reserves for Disaster Emergency Management and Post-Disaster Food Insecurity.

According to Buwas, the Permensos must be changed so that the company can solve all the problems it currently faces. But unfortunately, Buwas also did not explain which points in the Minister of Social Affairs had to be revised or changed.

"We hope that there will be a mechanism or regulation that changes. As is the case, for example, I just think that the authority lies with the government, in this case the Minister of Finance," he said.

On the same occasion, Buwas also mentioned that the procurement of CBP, which has been carried out by Bulog, which is more than 1 million tons, must be evaluated. Because, ideally, the need for CBP is only 800 to 850 thousand tons per year.

Furthermore, Buwas said that by reducing the CBP figure, Bulog's total principal debt could actually be reduced to Rp9 trillion.

"If previously what was prepared by CBP was only 850,000, it means that our next debt is only Rp. 9 trillion. So it is getting less, we are trying to reduce those debts," he said.