Bulog CEO Claims Warehouses Will Match Private Factory Standards
Perum Bulog’s President Director, Ahmad Rizal Ramdhani, has assured that the construction of post-harvest infrastructure in key production centres will be on par with private factory standards. “Among these rice processing production centres, some are already in use with mechanisation and automation. They are no less than Wilmar’s factories,” Ahmad said at the Coordinating Ministry for Food’s office in Jakarta on Wednesday, 1 April 2026.
Ahmad made this statement in reference to the target of building 100 post-harvest infrastructure sites, including warehouses, in accordance with Presidential Regulation No. 14 of 2026. Before deciding to build these facilities, Ahmad said Bulog must undergo three processes: feasibility studies, submitting technical considerations, and obtaining input from financial analyses.
He explained that the feasibility studies will involve various stakeholders such as universities and the National Research and Innovation Agency (BRIN). Meanwhile, Bulog will prepare technical considerations with the Directorate General of Food Crops under the Ministry of Agriculture.
Thus, all Bulog warehouses or post-harvest infrastructure will be built based on technical considerations from the Ministry of Agriculture. “In accordance with the typology of each region,” said the TNI retiree.
The feasibility study, for example, includes soil testing or soil tests. This is because each region in Indonesia has different soil characteristics. The soil test results will determine the land’s suitability for building warehouses or post-harvest infrastructure.
In addition, there is an assessment of soil slope. He said the maximum soil slope is 3–5 degrees. Land with a slope greater than 5 degrees is not recommended because it could complicate loading and unloading processes.
The next study concerns accessibility. He wants the warehouses to be built close to rice fields but with good road access. This is because the roads will later serve as routes for trucks carrying 20 to 30 tonnes.
Ahmad explained that Bulog needs input or evaluation results on the financial feasibility study and recommendations on the use of non-permanent government investment funds. He hopes the SOEs will provide evaluation results.
Bulog, he said, will report the fulfilment of the three requirements to the Coordinating Minister for Food to obtain written approval for the construction.
Ahmad explained that Bulog has been tasked with building 100 post-harvest infrastructure points. This number consists of 94 warehouses, six rice silos, and eight corn silos.
Additionally, there are milling facilities comprising 17 drying facilities, 17 rice milling units (RMU), eight corn dryers, and nine rice processing centres.
The construction of hundreds of post-harvest infrastructure sites in 92 regencies will cost Rp 5 trillion. The majority of the funds, around Rp 4.4 trillion, will be used to build the main infrastructure. The remainder, approximately Rp 0.56 trillion, will be allocated for mechanisation and automation of the facilities.