Food SOEs Are Offtaker For Panen Results, Madanas Formulates Funding Schemes

Head of the National Food Agency Arief Prasetyo Adi. (Photo: Doc. Antara)

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi said the strengthening of SOEs in the Food sector as offtakers for agricultural, livestock and fishery products must be supported by a strong and sustainable funding scheme.

Arief said that the funding was needed at least to secure two things.

First, ensure that the Food SOE is ready as a standby buyer when the harvest season arrives.

Second, as investment funds to prepare supporting infrastructure such as storage facilities and other food logistics facilities.

"NFA together with the Ministry of SOEs continue to coordinate to finalize the proposed appropriate funding scheme for Food SOEs, so that its role as an offtaker of food can be strengthened according to the direction of the President," he said in an official statement, Wednesday, February 15.

Currently, said Arief, the pattern being discussed is a funding option sourced from the state budget and banking.

"For general funding, there are two, it can come from the state budget and low-cost funds in collaboration with banks. This of course needs to be synchronized with the Ministry of Finance and Bank Indonesia," he said.

Arief said that funding to strengthen the role of Food SOEs as offtakers will provide benefits and encourage the implementation of a number of government programs, including maintaining food prices at the farmer, farmer and fisherman level so as not to fall.

"When the harvest season arrives, the products will be abundant. The government through BUMN Food must be present to absorb at a reasonable price, so that the basic prices at the producer level (farms, breeders, fishermen) are maintained," he explained.

Furthermore, this funding also encourages the implementation of Government Food Reserves (CPP) in accordance with the mandate of Presidential Regulation (Perpres) No. 125 of 2022 concerning the Implementation of CPP.

"Food products absorbed from farmers, breeders, and local fishermen will be stored in warehouses or storage facilities that can extend the life of storage as CPP, so that in the future we will start to have CPP for a number of strategic food commodities," he said.

Arief emphasized that CPP is important for price stability and assistance intervention during an emergency.

"The urgency of funding to strengthen the role of Food SOEs as offtakers is very logical. The funds are not lost because they have changed to CPP," he said.

For your information, currently regulatory support for CPP absorption funding is contained in the Minister of Finance Regulation (PMK), No. 153/PMK.05/2022 concerning Procedures for Providing Loan Interest Subsidies in the context of Organizing Government Food Reserves.

In this regulation, funding can be done through Himbara with a business to business (B to B) scheme between Himbara and BUMN Food.