Bulog's Reason for Submitting 10 Percent CBP Margin to the Government

Illustration. (Photo: Dok. Antara)

JAKARTA - Perum Bulog has submitted a 10 percent increase in the margin for the procurement of Government Rice Reserves (CBP) to the government. This proposal was submitted in conjunction with the margin received by Bulog which was considered not ideal and had the potential to cause losses amid the continued expansion of assignments.

Director of Perum Bulog Ahmad Rizal Ramdhani revealed that so far Bulog has only received a margin of Rp50 per kilogram (kg) of rice distributed. This amount has been in effect since 2014 without ever being adjusted.

According to Rizal, this condition is not comparable to the burden of assignments that Bulog must carry out, ranging from procuring farmers' rice, storing it in warehouses, to distribution through various government programs.

Therefore, continued Rizal, as a state-owned enterprise that carries out government assignments in the procurement of CBP, Bulog requests the same treatment as state-owned enterprises such as PT Pertamina (Persero) and PT PLN (Persero).

"Well, originally it was approved at 7 percent, originally 7 percent increased the margin. However, we proposed that it would be better if we were equal to other SOEs, 10 percent, both Pertamina and PLN," said Rizal when met at the Bulog Office, written Tuesday, December 30.

Rizal said that the margin equality was important so that Bulog had adequate financial space to maintain the stability of the supply and price of national rice.

In carrying out the CBP assignment, continued Rizal, Bulog must first absorb grain or rice from farmers at the government purchase price (HPP). For the financing of this procurement, Bulog relies on loans from the national bank consortium (Himbara).

Rizal said that after the rice was stored in warehouses as CBP and distributed through market operations, social assistance, food assistance, and disaster assistance, Bulog only received payment from the government. During this process, Bulog still bears the burden of bank loans.

Furthermore, continued Rizal, with a small margin, the payment made later, and the accumulation of interest costs, Bulog has the potential to continue to record losses.

In 2025, Bulog is projected to incur losses of up to Rp900 billion. However, Rizal continued, if the margin increase is approved at 10 percent, Bulog will have the potential to post a profit of up to Rp2.1 trillion.

"Once the margin is declared to have increased by 10 percent, it will automatically increase to Rp. 2.1 trillion," said Rizal.

Rizal said the proposed increase in the margin had received approval from the Coordinating Ministry for Food.

However, Rizal continued, the government is currently still waiting for recommendations from the Financial and Development Supervisory Agency (BPKP) before a final decision is made.

Rizal also hopes that before the end of 2025, the 10 percent margin increase can be decided.

"If from the discussion earlier it was quite internal Rakortas, but yes it must be the approval of BPKP," said Rizal.