Indonesian Political, Business & Finance News

Bulog Plans to Build 3-Hectare Warehouse in Saudi Arabia's Hajj Village

| Source: VIVA Translated from Indonesian | Infrastructure
Bulog Plans to Build 3-Hectare Warehouse in Saudi Arabia's Hajj Village
Image: VIVA

Jakarta, VIVA – State logistics company Perum Bulog plans to build a warehouse in Saudi Arabia to strengthen Indonesia’s food supply chain for hajj, umrah, and local commercial market needs. The warehouse is planned to cover approximately 2–3 hectares.

Bulog President Director Ahmad Rizal Ramdhani said the company had conducted a site survey in the Kampung Haji (Hajj Village) area and received initial support regarding land provision.

“We have already surveyed and prepared land of around 2 to 3 hectares in the Kampung Haji area,” Ahmad said after a limited coordination meeting at the Coordinating Ministry for Food in Jakarta on Monday, 23 February 2026.

He said the warehouse is planned to have an initial minimum capacity of 1,000 tonnes per unit, with the potential for phased expansion in line with distribution needs. The warehouse will be located in a bonded zone, meaning commodities entering the facility will not be subject to tax up to certain distribution points within the area.

“The Kampung Haji land will become a bonded zone,” he said.

Furthermore, Bulog is targeting construction to commence as soon as possible, although the process on the ground is still awaiting the land clearing preparation stage.

He assessed that the presence of a warehouse in Saudi Arabia would improve logistics efficiency, maintain rice quality during storage, and ensure continuity of supply for Indonesian pilgrims and the retail market in the country.

“For the target, the sooner the better, as soon as possible,” Ahmad said.

The warehouse construction plan forms part of Bulog’s medium-term strategy to expand Indonesia’s role in the international food supply chain.

Bulog will export rice for Indonesia’s hajj needs totalling 2,280 tonnes to Saudi Arabia in two waves, on 28 February and 4 March 2026, marking the nation’s inaugural rice export for hajj pilgrim requirements.

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