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TEMPO.CO, Jakarta - The government has officially allocated Rp16.6 trillion from the State Budget to Perum Bulog to procure 3 million tons of rice. This decision was finalized during a limited coordination meeting at the Office of the Coordinating Ministry for Food Affairs in Jakarta on Friday, January 31.

Coordinating Minister for Food Affairs, Zulkifli Hasan, explained that the funds will be used by the state-owned enterprise to procure 3 million tons of rice by April 2025. Additionally, with the government’s revocation of the quality grading rule, Bulog is now mandated to purchase unhusked rice at a price of Rp6,500 per kilogram, regardless of its condition.

"We had an extensive discussion about Bulog. Financially, there are no issues now. Bulog already has Rp23 trillion ready. Now, an additional Rp16.6 trillion has been approved by the Minister of Finance. So, we have a total of Rp39 trillion," said Minister Zulkifli, commonly known as Zulhas, after the meeting.

However, achieving this ambitious procurement target is not something Bulog can manage alone. Zulhas noted that Bulog requires support from various stakeholders, including the Minister of Home Affairs, governors, regents, district heads, and even village chiefs. He emphasized that rice field management reaches down to the village level. "There is no excuse for Bulog not to purchase at the price set by the government," Zulhas remarked.

Meanwhile, Bulog's president director, Wahyu Suparyono, described this funding injection as a government investment. As the operator, Bulog will receive the funds directly, although the administrative procedures for the fund transfer are still pending. "Please bear with us as we continue to discuss this," he stated at the venue.

Previously, Bulog had stated it would need at least Rp57 trillion to execute the government's mandate of procuring rice until April 2025 for the government rice reserves (CBP). Following the increase in the procurement target from 2 million to 3 million tons, the state-owned company requested additional funding from the government.

Bulog’s finance director, Iryanto Hutagaol, revealed that the company currently holds 1.7 million tons of rice in its warehouses. With the original target of 2 million tons, the projected year-end stock would be 1.2 million tons, meaning Bulog would manage a total of 3.7 million tons of rice for the year.

"With the new directive to procure 3 million tons, we will manage 4.7 million tons. If we calculate the price at Rp12,000 per kilogram, that totals approximately Rp57 trillion," Iryanto explained at Bulog’s office in Jakarta on Wednesday, January 22.

This budget also includes processing costs, which account for 10% of the total need. Iryanto noted that these costs are incurred annually. Although significant, he pointed out that Bulog’s total funding is still lower than that of larger enterprises, which allocate about Rp60 trillion to process 4.7 million tons of rice.

Source : tempo