4 Years Of SOE Transformation, ID FOOD Implements Important Tasks For National Food Strengthening

JAKARTA - Efforts to transform the national food sector continue to be encouraged by the government through a series of policies. Among other things, by strengthening the Food SOEs assigned to meet the supply of Government Food Reserves (CPP) and carrying out various corporate actions to support national food security.

This was conveyed by the President Director of the Food SOE Holding ID FOOD Frans Marganda Tambunan through his statement, in Jakarta, Tuesday, October 24. According to him, currently the ID FOOD as a Food SOE Holding is trusted by the government to carry out a number of strategic assignments related to food. This is to support the fulfillment of food and agriculture to strengthen economic security according to the Development Agenda of the RPJMN (National Medium-Term Development Plan) 2020-2024.

"The assignments carried out include the implementation of CPP. ID FOOD has been assigned to maintain the stock of CPP 9 commodities, namely cooking oil, consumption sugar, poultry meat, industrial meat, poultry eggs, chilies, shallots, garlic, and fish. In accordance with the mandate of Presidential Regulation (Perpres) Number 125 of 2022, concerning the Implementation of CPP, a total of 12 commodities, 3 more commodities namely rice, corn, and soybeans managed by Perum Bulog," he said.

To ensure the implementation of CPP runs sustainably, Frans said, ID FOOD has signed a funding agreement of IDR 1.5 trillion with the Association of State-Owned Banks (Himbara).

"Together with Himbara, in early October 2023, we have signed a lower interest funding agreement than commercial scheme funding. This can help us stabilize our supply and food prices by absorbing the yields of farmers, breeders, fishermen, for the CPP stock. These nine commodities," he said.

Frans added that it was agreed that the funding could accelerate the fulfillment of CPP stocks in preparation for Ramadan and Eid next year.

"This funding can help companies take off strategic food commodities from main producers of MSMEs. This is important for year-end stabilization and starting to prepare for Lebaran 2024 which is more advanced every year," he said.

The role of ID FOOD in organizing CPP does not stop at the fulfillment of its supply, but also in the implementation of downstreaming. Frans explained that the downstreaming or distribution stage has now been carried out through the distribution of food assistance for stunting, in the form of egg and chicken packages for 1.4 million Stunting Risk Families (KRS) in 7 provinces.

"We have finished carrying out the assignment to distribute phase I stunting food assistance which is divided into 3 batches. Currently, the second phase of distribution is underway," he said.

Meanwhile, the number and type of stunting assistance distributed is the same as phase I, so that in the next 3 months the family registered as KRS will receive food assistance for chicken and eggs.

"This task is very important, because in addition to reducing the national stunting rate, it also has an impact on maintaining the stability of the price of chicken and eggs at the small independent farmer level which is the company's supplier. So it can be said, this program is not just an assignment, but as an integrated close loop to strengthen the national food ecosystem from upstream to downstream," he said.

Furthermore, Frans believes that the trust of ID FOOD as an off taker or supplier of domestic food commodities cannot be separated from the strengthening efforts that continue to be encouraged by the Ministry of SOEs and NFA.

"The strengthening of the role of SOEs in the food sector begins with strategic steps taken by the Ministry of SOEs through the establishment of Food SOE Holding in 2022. In the process, Food SOE Holding acts as an agent of development to realize three objectives, namely supporting food security; inclusiveness of farmers, breeders, fishermen, and MSMEs; and becoming a world-class company," he said.

He also said that the stronger role of Food SOEs in the national food ecosystem could not be separated from the transformation that the Ministry of SOEs has continued to boost in the last 4 years.

"The Ministry of SOEs in the last 4 years has strengthened world-class corporate DNA through a number of strategic initiatives. The performance of Food SOE Holding is getting better in terms of sales growth, EBITDA, and assets cannot be separated from this," he explained.