Bulog: Margin increase to 7 percent, President's support to safeguard self-sufficiency

Jakarta (ANTARA) - President Director of Perum Bulog, Ahmad Rizal Ramdhani, affirmed that the increase in the margin fee to 7 per cent is a form of support from President Prabowo Subianto and his government to strengthen Bulog’s role in safeguarding government rice reserves for sustainable food self-sufficiency.

“Our event began with a joint prayer. Our intention was for that prayer to serve as an expression of gratitude to God, to Allah SWT, because the government has raised Bulog’s margin fee to 7 per cent,” said Rizal in Jakarta on Monday evening.

He made these remarks after a thanksgiving ceremony and joint prayer, combined with donations to dozens of orphans, as an expression of gratitude for the issuance of the National Food Agency Regulation on the Determination of the Margin for the Assignment of Managing Government Rice Reserves, attended by the entire leadership of Bulog headquarters.

Rizal expressed his gratitude to President Prabowo Subianto for his full support in strengthening Bulog, which made the margin fee increase possible.

Thanks were also extended to Coordinating Minister for Food Zulkifli Hasan, Minister of Agriculture and concurrently Head of the National Food Agency (Bapanas) Andi Amran Sulaiman, Minister of Finance Purbaya Yudhi Sadewa, and Minister of State Secretary Prasetyo Hadi.

He also appreciated the support of the Chair of House of Representatives Commission IV, Siti Hediati Hariyadi, also known as Titiek Soeharto, and all legislators who have been Bulog’s strategic partners.

According to Rizal, the joint prayer symbolised reverence to God as well as gratitude for the trust the government has once again placed in Bulog through the margin fee increase.

He said the increase in the margin fee to 7 per cent represents the government’s appreciation of Bulog’s various efforts in carrying out its assignment to safeguard rice reserves and support national food self-sufficiency.

“Essentially, by being given a margin fee increase to 7 per cent, we have been blessed. So our efforts all this time have been rewarded, recognised by the government. This is a reward from the government,” said Rizal.

The government has issued National Food Agency Regulation No. 3 dated 29 July 2026, which officially adjusts Bulog’s assignment margin to 7 per cent, equivalent to Rp970 per kg of rice — a significant increase from the previous scheme of only around Rp50 per kg of rice.

According to Rizal, the margin fee increase is both a blessing and recognition of the hard work of all Bulog personnel in supporting the government’s success in strengthening Indonesia’s food self-sufficiency.

He noted that paddy absorption from farmers, in rice equivalent, had exceeded 3.5 million tonnes by early August against a target of 4 million tonnes for the whole of 2026, providing an important foundation for sustaining national food self-sufficiency.

Beyond the margin fee increase, Bulog has also received support through a reduction in bank loan interest from 8 per cent to 5 per cent, easing the company’s financing burden.

Rizal explained that under this scheme, Bulog bears 3 per cent of the interest while the remaining 2 per cent is subsidised by the government, significantly improving the company’s cost efficiency.

“Bank loan interest rates fell from 8 per cent to 5 per cent. Of that 5 per cent, 3 per cent is paid by Bulog, while 2 per cent is subsidised by the government. We are deeply grateful, truly grateful,” said Rizal.

According to him, the lower loan interest will save more than Rp1.07 trillion in bank interest payments, strengthening Bulog’s ability to carry out its various government assignments optimally.

With this policy support, Bulog is optimistic it can record a positive balance of around Rp1.14 trillion by the end of the year, reflecting the company’s increasingly healthy performance.

He assured that the additional margin will not only strengthen the company’s financial position but will also be returned to the public through improved service quality and better Bulog rice.

“We will improve the maintenance and care of Bulog’s rice stocks so that the rice distributed to the people is the best and of the highest quality,” said Rizal.

Bulog will also increase operational support for warehouse and field staff, including renovating and optimising the warehouses of the state-owned company so that government assignments can be carried out more effectively.

According to Rizal, rice maintenance and care will continue to be strengthened so that the public receives Government Rice Reserve of the best quality, in line with Bulog’s service commitment.

He emphasised that Bulog will treat the government’s trust as motivation to keep improving professionalism, maintain service quality, and strengthen its role in realising national food security.

“Bulog will certainly improve the quality and service it provides to the people, namely by increasing operational support to warehouses, including those in 3TP regions (underdeveloped, frontier, outermost and border areas),” he said.