In a strategic move to bolster national food security, the Indonesian government has allocated Rp16.6 trillion from the State Budget to Perum Bulog, the state-owned logistics agency, to procure 3 million tons of rice by April 2025. This decision was finalized during a limited coordination meeting at the Office of the Coordinating Ministry for Food Affairs in Jakarta on January 31.

Coordinating Minister for Food Affairs, Zulkifli Hasan, commonly known as Zulhas, emphasized the government's commitment to ensuring adequate rice reserves. He stated, "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."

To achieve this ambitious procurement target, Bulog will require support from various stakeholders, including the Minister of Home Affairs, governors, regents, district heads, and village chiefs. Zulhas highlighted the importance of collaborative efforts, noting that rice field management extends down to the village level. He asserted, "There is no excuse for Bulog not to purchase at the price set by the government."

In a significant policy shift, the government has revoked the quality grading rule, mandating Bulog to purchase unhusked rice at a price of Rp6,500 per kilogram, regardless of its condition. This move aims to support farmers and ensure fair compensation for their produce.

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

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. This budget also includes processing costs, which account for 10% of the total need. He 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.

This substantial financial commitment underscores the government's dedication to maintaining rice availability and price stability in Indonesia. By empowering Bulog with the necessary resources, the administration aims to strengthen national food security and support the agricultural sector.