Bulog Ready To Absorb Padi Of The Makmur Pupuk Indonesia Program

President Director of Perum Bulog, Bayu Krisnamurthi. (Photo: Doc. Antara)

JAKARTA - President Director of Perum Bulog Bayu Krisnamurthi said that his party is ready to work together in absorbing rice from the Prosperous Program run by PT Pupuk Indonesia to strengthen the government's rice reserves (CBP).

"Last week, we met with the President Director of PIHC (Pupuk Indonesia Holding Company) (Rahmad Pribadi) and agreed to update the MoU and we, the Board of Directors of Bulog, have conveyed to the Board of Directors of PIHC that Bulog is ready to become an offtaker of the entire Makmur Program," said Bayu when directly inspecting the Bulog Rice Milling Center (SPP) in Karawang, West Java, quoted from Antara, Tuesday, May 21.

Bayu conveyed this in response to the statement of the Minister of State-Owned Enterprises (BUMN) Erick Thohir who wanted to combine a food and fertilizer ecosystem.

Bayu revealed that previously his party had collaborated with PT Pupuk Indonesia Holding Company, but this cooperation did not go well due to elements of the government's purchase price (HPP).

"Indeed, Bulog is actually already involved in the food ecosystem. Especially with PIHC, at a time ago there was an MoU, everything was there, but maybe it wasn't surfing that we wanted mainly because of the price element. Bulog is bound by HPP," explained Bayu.

However, Bayu said that his party had met again with the President Director of Pupuk Indonesia Rahmad Pribadi to update the MoU that had been established previously in order to absorb rice from the Prosperous Program.

"So it means that we will take off all rice (Program Makmur) at PIHC," said Bayu.

According to Bayu, if a synergy with PT Pupuk Indonesia occurs, it can systematically increase domestic rice absorption, not only from the Public Service Obligation (PSO) side but also commercially.

Bulog, continued Bayu, will combine the purchase of PSO and its commercial so that if the price of unhulled rice at the farmer level is higher than the HPP, it can still be sold to Bulog, and Bulog can also buy using commercial price criteria.

"So in the future, hopefully Bulog will be fully involved. Thus the Bulog and PIHC targets are the same, that it will ensure an increase in productivity. And secondly, the hope is that Bulog can carry out domestic procurement more systematically, because we follow it from planting, then to harvesting," said Bayu.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that his party had prepared a blue print design for SOEs until 2034, which included integration plans including the unification of the food and fertilizer sectors.

"We have a blue print of SOEs until 2034, namely in the next 10 years, one of which is strengthening the ecosystem. For example, now that fertilizers with our food are separated, in the future we will turn it into an ecosystem," Erick said in the Family Gathering of the Ministry of SOEs in Taman Mini Indonesia Indah (TMII) Jakarta, Sunday (5/5).

The integration between the fertilizer and food sectors is considered important because they are part of an interrelated ecosystem. However, currently both of them are still separated and need to be combined so that they can run more efficiently.

Pupuk dan pangan karena ini ekosistem. Tidak mungkin kita bicara pangan tanpa koferuk misalnya. Ini masih terpisah, tutur Erick.

Meanwhile, President Director of PT Pupuk Indonesia Rahmad Pribadi said the "Let's Advance People's Business" (Makmur) program had helped as many as 107,642 farmers throughout 2023, in order to realize national food security.

Program Makmur is a program launched by the Ministry of SOEs in August 2021. This program is an initiative of Pupuk Indonesia as an effort to solve agriculture in order to increase agricultural productivity and the welfare of farmers.

The Makmur program seeks to create a comprehensive agricultural ecosystem supported by several SOEs such as ID Food, Himbara, insurance SOEs and so on. Starting from providing funds or business capital in synergy with banking institutions, insurance guarantees, fertilizer availability, pest control control, to offtakers.

The program also provides productivity and welfare guarantees for farmers. In addition, it is also a commitment to maintain national food security. The Makmur program is in the form of escort and intensive assistance to farmers and agricultural cultivation supported by technology.