Bulog's Assignment Is Getting More Confusing

It is widely rumored that Bulog will once again be tasked with maintaining price stability of 11 more food items, not just the three food commodities of rice, soybeans and corn.

This means that the results of the coordination meeting at the Coordinating Ministry of Economy on Tuesday, February 20, 2016 have changed again. At that time, Bulog’s role, which was initially requested to become a buffer for 11 food items, was cut to only three food commodities.

Now, it is rumored that Bulog will become a buffer for 11 food commodities, namely rice, soybeans, corn, beef, chicken, sugar, eggs, chili, onions, flour, and cooking oil.

The vagueness of this assignment is due to the fact that the Presidential Regulation (Perpres) on Bulog’s Assignment has yet to be issued.

Wahyu, Director of Procurement at Bulog, said that up until now, the plan to expand Bulog's assignment is still being developed. “The discussion is developing, from stabilizing 11 food commodities to three, but it sounds like it's going back to 11,” said Wahyu on Tuesday (March 8).

The certainty of the assignment to Bulog will only be known after the issuance of a Presidential Regulation governing this matter.

According to Wahyu, Bulog is always ready, whether it will be assigned to become the stabilizer of 11 basic food commodities or only three commodities. “The sooner the Presidential Regulation is issued, the sooner we can move with legal protection,” he said.

If the Presidential Regulation is issued, Bulog can quickly move to prepare infrastructure, funding, and cooperation with other parties to carry out this assignment.

Several other BUMNs in the food sector have expressed their readiness to cooperate with Bulog. Agung Darmawan, Director of PT Pertani, is ready to help Bulog in procuring and drying paddy.

"We are also cooperating in the procurement of dry field rice (GKS)," said Agung.

PT Berdikari has had a long-standing partnership with Bulog.

When Bulog was assigned to import beef, Berdikari's Slaughterhouse (RPH) was used as one of the slaughter places and the cattle pen was used as a shelter for Bulog's cattle.