Strengthening Government Food Reserves, Badanas Asks Bulog To Focus On Domestic Production

Head of the National Food Agency Arief Prasetyo Adi. (Photo: Mery Handayani/VOI)

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi said his party would continue to monitor Bulog's performance in the regions.

Especially developments in the absorption of domestic grain harvests.

"The stock that we absorb is of course to anticipate the dry season later, so we don't just continue to rely on imports," he said in an official statement, Tuesday, April 30.

Arief said President Joko Widodo had also asked the rice stock in Bulog to reach 3 million tons. To achieve that, the Ministry of Finance has also supported by providing loan interest subsidies to Bulog.

"So that funding in absorbing domestic harvests, there are no financial problems," he said.

If the CPP stock is increasingly supplied from within the country, he said, the government is optimistic that distribution programs to the community such as rice food assistance will fully use rice from the hard work of farmers.

"Moreover, the estimated production of rice in April and May can reach 8.7 million tons. The government must take part in absorbing it," he said.

Based on the Regional Sample Framework (KSA) of the Central Statistics Agency (BPS), national rice production in April 2024 is estimated to reach 5.53 million tons and in May 2024 it is at 3.19 million tons.

This projection is increasing when compared to the previous year. In April 2023 rice production was at 3.66 million tons and in May 2023 at 2.86 million tons.

As is known, the government through the Ministry of Finance has set the interest subsidy in the context of organizing Government Food Reserves (CPP).

Food SOEs can collaborate with the Association of State-Owned Banks (HIMBARA), the Association of Regional Development Banks (ASBANDA) and also private banks.

The range of loan interest subsidies set is between 3 to 4.5 percent. This can be carried out through two schemes, namely schemes with guarantees from the government and schemes without guarantees.

The loan ceiling of up to IDR 28.7 trillion is a loan that can be submitted by state-owned food companies to obtain interest subsidy facilities from the government.