Jakarta, CNBC Indonesia – The decision on whether or not to import rice will be decided next week. This is because Perum Bulog has only 6 working days from Wednesday (11/23/2022) to procure 600 thousand tons of government rice reserves (CBP).
“Currently Indonesia really needs additional stocks of rice reserves to intervene in the market and anticipate unforeseen conditions like disasters,” National Food Agency (Bapanas) head Arief Prasetyo Adi said on Thursday (24 /11/2022).
By the end of 2022, he said, Bulog needs to increase its stockpile to 1.2 million tons. In order to guarantee price stability and the security of the community’s needs in the event of an emergency.
As of November 22, 2022, Bulog had a stock of 594 tons of rice, in the form of medium (CBP) and premium (commercial) rice.
“If not replenished, Bulog’s stocks will continue to fall by the end of the year to 342,801 tons. And this is very dangerous because Bulog will not be able to intervene when certain conditions are met. Prices are high, or there are extraordinary events (KLB ) as in Cianjur,” Arief said.
For this reason, Commission IV of the Presidential Decree ordered the acceleration of the procurement of national rice reserves. This was decided at the conclusion of a Joint Hearing (RDP) for Echelon I of the Ministry of Agriculture (Kementan), Head of Bacanas, Chief Executive Officer of Perum Bulog and Chief Executive Officer of Food Holding ID Food, on Wednesday (23/11/ 2022)
“Commission IV of DPR RI has requested the government with the Ministry of Agriculture (Kementan) to meet the national demand for rice. In addition, the Ministry of Agriculture has stated that it is able to meet the needs of national rice reserves from domestic production of 600 thousand tons which will be purchased by Perum Bulog at commercial prices within 6 days of today’s hearing”, said the President of the IV DPR Commission Sudin reading the conclusion of point 2 of the PSR.
“If within 6 days of today’s hearing it is not heard, then the data believed to be from the Ministry of Agriculture is invalid,” he added.
Arief also cautioned that absorption should be done carefully. Because it will trigger another price increase in the market.
“If downstream prices are high, inflation will also be high. If inflation is high, then it is not in accordance with the president’s orders. This absorption process will be done very carefully in order to maintain price equilibrium “, he has declared.
“If it is very urgent and there is no other choice, the option of procurement from abroad will be considered,” he said.
When asked about the schedule for making rice imports, Arief declined to confirm.
“We are waiting for the realization of the RDP results,” said Arief.
“Blame Pak Jokowi”
During the meeting, both the Ministry of Agriculture and Bulog discussed the rice data available on the market.
Bulog’s chief manager Budi Waseso said the coordination meeting ordered Bulog to procure 1-1.2 million tons of CBP rice. And in the meeting, he said, the Agriculture Ministry agreed and stated that 500,000 tons of rice were available in the rice mills.
“However, we checked on the ground. It was 2 times, just don’t sing songs 3 times. Don’t mess with this rice, basic food needs,” Buwas said.
Commission IV then questioned the Ministry of Agriculture about the stocks of rice on the market. Where the Agriculture Ministry said, the price and specifications required by Bulog were obstacles to takeover.
However, the Agriculture Ministry’s statement was denied by Bapanas.
“Bulog bought commercial rice even at Rp. 10,200 per kg. To fill the CBP. Therefore, the portion of commercial rice in Bulog’s stock is now increasing,” said Arief.
The debate then sparked the ire of Commission IV of the House of Representatives.
“Punten Pak General Secretary (General Secretary of the Ministry of Agriculture), Bulog needs 600 thousand tons not to be imported, can it be prepared or not?” said Member of the Commission IV DPR RI Slamet.
“We can prepare it,” said Agriculture Ministry Secretary-General Kasdi Subagyono.
“Yes,” Slamet asked and Kasdi agreed.
The Head of Commission IV DPR Sudin then asked himself what would be the consequences if there were no rice promised by the Ministry of Agriculture?
“This is a public forum, there is the legality, there are the minutes of the meetings. If the Ministry of Agriculture agrees to this meeting and it doesn’t happen, all you have to do is blame Pak Jokowi, it’s easy” Slamet said.
“I don’t hate Mr. Jokowi like this, but this ensures that the government has a figure, but this is different. Meanwhile, the Ministry of Agriculture agrees. Why should we insist on imports? What’s not okay?” said Slamet.
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