Badanas Asks Bulog To Strengthen Government's Food Reserve Stock In The Sleman Region

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

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi asked Perum Bulog to strengthen government food reserves (CPP) in the Sleman area, Yogyakarta Special Region (DIY), through domestic production absorption.

"The National Food Agency will continue to monitor Bulog's performance in the regions. Especially developments in the absorption of domestic grain yields. The stock we absorb is of course to anticipate the dry season later, so we don't just continue to rely on imports," said Arief in a statement in Jakarta, quoted from Antara, Friday, May 3.

Arief said that his party had made a working visit to monitor the availability of stock at the Purwomartani Bulog Warehouse, Sleman, Yogyakarta Special Region (DIY).

He said that President Joko Widodo (Jokowi) wanted the stock of rice in Perum Bulog's warehouse at least 3 million tons to meet the needs of the community, so that maximum absorption during the harvest period was needed.

"The President has 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 continued.

Furthermore, Arief said the government through the Ministry of Finance had determined the amount of interest subsidies in the context of implementing government food reserves (CPP).

Furthermore, food SOEs can collaborate with HIMBARA (State-Owned Bank Association), ASBANDA (Regional Development Bank Association), and also private banks.

Arief said the range of loan interest subsidies was set at 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.

Loan ceilings of up to IDR 28.7 trillion are loans that can be submitted by state-owned food companies to obtain interest subsidy facilities from the government.

"If the CPP stock is increasingly supplied from within the country, we are optimistic that distribution programs to the public 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," said Arief.

Arief added that 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," said Arief.