CBP Stock In Bulog Is Running Low, 1 Million Tons Of Rice Targeted By The End Of The Year Cannot Be Achieved

Illustration (Photo: Doc. Antara)

JAKARTA - The government is targeting the government's rice reserve stock (CBP) at the Logistics Agency (Bulog) to reach 1 million tons.

Moreover, with Presidential Regulation Number 125 of 2022 concerning Government Food Reserves (CPP), it is hoped that Bulog will be able to absorb more.

Meanwhile, the government's rice reserve stock (CBP) at Perum Bulog has decreased. As of October 2022, Bulog's rice stock was only 673,613 tons or 11.2 percent.

A researcher from the Institute for Development of Economics and Finance (Indef) Sugiyono Madelan Ibrahim said that Bulog's performance in absorbing grain and rice was relatively limited, which was around 6 to 8 percent of total production.

According to Sugiyono, the grain and rice absorbed by Bulog are often below market prices. The public will sell to Bulog when the selling price in the market is lower than Bulog at the same quality.

Sugiyono said that the government's rice reserve target of reaching 1 million tons by the end of 2022 is also not technically easy, given the ability and track record of Bulog's performance.

"Even though it is not easy to add an additional 1 million tons of savings as government rice reserves now. Moreover, it is not easy to absorb rice that comes from 60 percent of the community. Technically, this is not easy to realize," he said in Jakarta, Tuesday, November 1.

However, Sugiyono assessed that the target of 1 million tons by the end of 2022 might be achieved when the government is willing to buy rice above the market price. Unfortunately, it will trigger an increase in inflation.

"With the exception of the procurement of rice reserves, the government will buy it at a price above the market at the end of this year. However, if this is done, it will increase the inflation rate," he concluded.

Regarding Presidential Decree No. 125 of 2022, Sugiyono emphasized not only rice but also other staple food commodities. The Presidential Regulation will also restore the function of Bulog to the way it used to be.

"Actually, the presidential regulation is not only to provide rice reserves but also to many other basic commodities. This condition has re-empowered the functions of Bulog such as the New Order, as well as to implement the Trade Law and the Food Law," he said.

Bulog Must Be More Professional

Meanwhile, CORE Economist Dwi Andreas Santosa said that Bulog's new task in administering government food reserves (CPP), could make Bulog to improve itself to be more professional.

"One national private rice company in Indonesia, the capacity is only one-eighth of Bulog. Only one-eighth can survive and get bigger. Bulog has 8 times the capacity, can't afford it. So there is a problem of professionalism," said Andreas.

He explained, usually, Bulog can measure the entry and exit of rice with assistance systems such as Rastra and Raskin.

However, currently with the nature of Non-Cash Food Assistance (BPNT), Bulog feels that there is less certainty.

Even so, Bulog is still collaborating with the Ministry of Social Affairs, for example, for the distribution of social assistance.

"With the Raskin and Rastra systems, there is a leak. That's why it was changed to BPNT. And the government's decision to change to BPNT is very beneficial for the beneficiaries," he said.

This Professor of IPB also saw that Bulog was still given a number of facilities to support its work. One of them is low interest.

"Moreover, Bulog compared to the private sector, there are advantages, there is a warehouse, low interest, from that point of view it must be more profitable than the private sector. Only Bulog must be given the flexibility to sell in the market," explained Andreas.

Previously, the government issued Presidential Regulation Number 125 of 2022 concerning Government Food Reserves (CPP).

In the Presidential Regulation, the Logistics Affairs Agency (Bulog) is tasked with administering the first stage of government food reserves (CPP), which includes types of food, namely rice, soybeans, and corn.

Coordinating Minister for Economic Affairs Airlangga Hartarto hopes that with the Presidential Regulation 125 of 2022, Bulog can maximize the absorption of rice for the government's rice reserves.

"With Perpres 125/2022, Bulog should be able to absorb more rice for CBP. We'll see when it's realized," said Airlangga.