Jakarta, CNBC Indonesia – The government plans to change the structure of Perum Bulog to focus more on the food stabilization function and support the achievement of the food self-sufficiency target by 2027. Coordinating Minister for Food, Zulkifli Hasan (Zulhas) revealed that Bulog will transform into a non-commercial institution that is no longer profit-oriented, so that its role as a food stabilizer can be more optimal like in President Soeharto’s New Order era.
“To achieve food self-sufficiency, Bulog’s function must return, its institution must be transformed, it can no longer be commercial. If it is commercial then people will buy corn, sometimes they calculate grain. Bulog is making a profit or loss, if they lose, they will be checked,” said Zulhas during a press conference at the Graha Mandiri Building, Jakarta, Thursday (21/11/2024).
He said that the change in Bulog’s structure to be under the President had been agreed upon, and discussions would continue in a marathon manner. “Well, this has been agreed upon earlier, the important thing is that there will be changes to the institution. We will discuss what it will be like next week, starting the marathon,” he continued.
However, Zulhas emphasized that currently Bulog is still under the Ministry of State-Owned Enterprises (BUMN). “Still (under the Ministry of BUMN). Not yet official (becoming a non-commercial institution under the President). This is just tightening our concept. Until there is a change (then Bulog will officially be under the President),” stressed Zulhas.
When met after the press conference, the Main Director of Perum Bulog, Wahyu Suparyono, explained that this change would bring Bulog closer to farmers and focus on stabilizing food prices through APBN support.
Photo: Coordinating Minister for Food Zulkifli Hasan with the Minister for Food during a Press Conference at the Graha Mandiri Building, Jakarta, Thursday (21/11/2024). (CNBC Indonesia/Martyasari Rizky)
Coordinating Minister for Food Zulkifli Hasan with the Minister for Food during a Press Conference at the Graha Mandiri Building, Jakarta, Thursday (21/11/2024). (CNBC Indonesia/Martyasari Rizky)
“Oh yes, later the concept is that we will get the APBN. With the APBN as stabilization, yes we can stabilize directly. Buy from farmers, buy from sugar farmers, corn farmers. This strengthens our function as a stabilizer,” explained Wahyu.
However, he emphasized that this transformation process takes time. “The target is that in 2025 we will still use the BUMN Company Work Plan and Budget (RKAP). So we as operators will continue to run. If not, we will stop absorbing grain and absorbing rice. (Tupoksi as) a food BUMN will still run, but a transformation team will be formed later “We have prepared the concept with the Presidential Decree,” he said.
Wahyu hopes that Bulog’s transformation into a non-commercial institution can proceed more quickly. He said, the transformation would be followed up through a Presidential Decree (Keppres). “We hope it can be faster, but there are many aspects that must be resolved, including regulations such as PP 13 of 2015 concerning Perum Bulog,” he added.
Although this change is considered positive, there are challenges related to managing overlapping tasks with the National Food Agency (Bapanas). “Later this will be discussed further. We are only preparing the concept, urgency and structure to be proposed to the president,” he continued.
With this plan, the government hopes that Bulog can be more optimal in maintaining food availability and prices to support the achievement of national food self-sufficiency.
(wur)
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Well, well, well! It seems like the Indonesian government is doing a little spring cleaning over at Perum Bulog! Perhaps they’ve been watching too much “Marie Kondo” and decided that Bulog didn’t “spark joy” as a profit-making institution. Instead, they’re pivoting the entire operation to focus on food stabilization – yes, folks, it’s like turning a nightclub into a soup kitchen! Not that there’s anything wrong with soup kitchens, of course. I mean, who wouldn’t want to trade the disco lights for a nice hot bowl of porridge?
So let’s break this down, shall we? Zulkifli Hasan (aka Zulhas, a name which sounds like a brand of Indonesian shampoo) announced that Bulog will ditch its commercial ambitions – good riddance! You know things are serious when the government takes a note from the Good Old Days during President Soeharto’s New Order era. Back then, they were so good at food stabilization that they could probably turn a potato into a loaf of bread just by staring at it long enough!
Zulhas made it clear that they want Bulog to prioritize food self-sufficiency by 2027. Bold move! It’s like saying, “Forget about investing in tech startups! We’re going back to basics with corn and rice.” You just know that someone in the room must have groaned, “What about my avocado toast?”
Now, that’s not to say it’s all sunshine and rainbows. Oh no! They’ve still got to jump through bureaucratic hoops like a circus performer on stilts. Right now, Bulog is still under the Ministry of State-Owned Enterprises. So, it seems they’re just tightening their belt but haven’t officially made it to the buffet yet! It’s almost as if they’re saying, “We are prepping the salad while low-key eyeing the chocolate cake.”
And here comes the Main Director of Perum Bulog, Wahyu Suparyono, to chime in with a brilliant plan. They’re aiming to buy directly from the farmers because, apparently, nothing screams ‘food stability’ more than a government official with a shopping list! “We’ll buy corn from farmers, sugar from farmers… heck, we’ll shop at the local farmer’s market like it’s the late-night kebab truck!”
But Wahyu did point out that this massive overhaul might take some time. Surprise, surprise! Bureaucracies moving quickly is about as likely as finding a unicorn in Jakarta’s traffic. And let’s not forget the inevitable tussles with the National Food Agency. It’s like a heavyweight championship for food management – may the best bureaucrat win!
All in all, it seems the government is hoping that this new approach will keep food prices from skyrocketing to the point where a loaf of bread costs as much as a small car. So, while they’re still fumbling through the details and battling overlapping responsibilities, let’s just hope they can cook up a positive outcome – but if all else fails, there’s always Plan B: a hearty serving of “Let Them Eat Cake!”
As we watch this unfold, let’s keep our forks ready. Who knows, we might just see Bulog become the unsung hero of the food industry while bleating its own version of “Eat, Pray, Love” somewhere between rice fields and kitchen tables. Just remember – if you can’t beat the system, make sure you’re at least well-fed!
Jakarta, CNBC Indonesia – The Indonesian government has set ambitious plans to restructure Perum Bulog, pivoting its focus primarily toward functions related to food stabilization. This strategic shift is aimed at ensuring Indonesia meets its food self-sufficiency target by the year 2027. At a press conference held at the Graha Mandiri Building in Jakarta on Thursday, Coordinating Minister for Food, Zulkifli Hasan—widely known as Zulhas—disclosed that Bulog will evolve into a non-commercial entity, stepping away from profit motives to enhance its capabilities as a food stabilizer, reminiscent of its operational heights during President Soeharto’s New Order regime.
“To achieve food self-sufficiency, Bulog’s function must return, its institution must be transformed, it can no longer be commercial,” Zulhas articulated. He emphasized the need for Bulog’s operations to shift from profit-loss calculations, such as buying corn or grains based on commercial viability, to a model that prioritizes stable food supplies for all Indonesians.
Zulhas confirmed that the restructuring will place Bulog under direct presidential oversight. “Well, this has been agreed upon earlier, the important thing is that there will be changes to the institution. We will discuss what it will be like next week, starting the marathon,” he added, indicating that detailed discussions would commence imminently.
However, he clarified that, for now, Bulog remains governed by the Ministry of State-Owned Enterprises (BUMN). “It is still under the Ministry of BUMN,” he reiterated. “Not yet official (as a non-commercial institution under the President). This is just tightening our concept. Until there is a change, Bulog will officially remain under the Ministry,” Zulhas stressed.
The Main Director of Perum Bulog, Wahyu Suparyono, elaborated after the press conference, explaining that this collaborative shift would enhance connections with farmers, allowing Bulog to focus on stabilizing food prices with support from the state budget (APBN).
“Oh yes, later the concept is that we will get the APBN. With the APBN as a stabilization tool, we can stabilize prices directly,” Wahyu detailed, envisioning a more supportive purchasing strategy where Bulog buys directly from various farmers including those producing sugar and corn.
Nonetheless, Wahyu acknowledged that this transformation will not happen overnight, explaining, “The target is that in 2025 we will still use the BUMN Company Work Plan and Budget (RKAP). So we as operators will continue to run. If not, we will stop absorbing grain and rice.” He went on to say that while the existing food BUMN operations will persist, a dedicated transformation team will soon be established to oversee these significant changes.
Wahyu expressed hope that the transition of Bulog into a non-commercial institution could be expedited, noting that this transformation would be formally adopted through a Presidential Decree (Keppres). “We hope it can be faster, but there are many aspects that must be resolved, including regulations such as PP 13 of 2015 concerning Perum Bulog,” he stated, underlining the complexities involved in this pivot.
Although this reorganization is perceived as a positive initiative, Wahyu pointed out the challenges arising from overlapping responsibilities with the National Food Agency (Bapanas). “Later this will be discussed further. We are only preparing the concept, urgency, and structure to be proposed to the president,” he said, indicating a collaborative effort moving forward.
With this restructuring plan, the government is optimistic that Bulog will play a more effective role in maintaining food availability and stabilizing prices, ultimately advancing the nation’s goal of food self-sufficiency.
(wur)
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Video: If it existed in the New Order, Bernadya’s song would be hated by the government
What challenges does Bulog face in managing overlapping responsibilities with the National Food Agency during its transition to a non-commercial entity?
Ormation will come with its own set of challenges, particularly regarding overlapping responsibilities with the National Food Agency (Bapanas). “This complexity will need thorough discussions,” he noted, as Bulog prepares to refocus its efforts amidst existing structures in Indonesia’s food management ecosystem.
The government’s strategic pivot aims to enable Bulog to better maintain food availability and stabilize prices by shifting its priorities away from commercial viability towards ensuring food security for all citizens. The emphasis is clear: national food self-sufficiency is the ultimate goal, with plans set to be formalized through a Presidential Decree in response to regulatory requirements like Government Regulation No. 13 of 2015 concerning Perum Bulog.
While the transformation is broadly welcomed, skepticism about execution remains high. The move draws parallels to Indonesia’s past food management successes under President Soeharto, signaling a return to a more controlled and state-driven approach to food production and distribution. Yet, critics question whether the government can navigate the bureaucratic red tape and institutional inertia that often plagues such massive changes.
These plans emphasize a closer relationship with farmers, with Bulog expected to prioritize purchasing directly from local agricultural producers. This new model envisions not just stabilizing the food supply but also bolstering rural economies by connecting farmers more directly with national food systems.
As this process unfolds, stakeholders will be watching closely to see if Bulog can reclaim its role as a stabilizer of food prices and champion of food security while effectively managing its transition into a non-commercial entity. Ultimately, the success of this initiative will hinge on the government’s ability to enforce regulatory changes, streamline operations, and foster effective partnerships with farmers to replenish the nation’s food supplies.