Bulog reaffirms role as absorber of food production
Jakarta (ANTARA) - Perum Bulog has reaffirmed its ongoing role as the absorber of production outputs or off-taker within the national food system, particularly in the absorption, processing, and distribution of agricultural produce to the public.
Bulog President Director Ahmad Rizal Ramdhani stated that the company is prepared to carry out government assignments in supporting the strengthening of the food sector.
“If assigned, we at Bulog are ready to support tasks from the government,” Ahmad said after a limited coordination meeting at the Coordinating Ministry for Food, in Jakarta on Monday.
The statement was made in response to the strengthening of the role of state-owned enterprises (SOEs) in the food sector, including the potential involvement of SOEs in the production of strategic commodities.
This policy aligns with Presidential Instruction No. 2 of 2026 on accelerating food self-sufficiency, which grants authority to the Minister of Agriculture to assign SOEs in the agriculture, agroindustry, and food logistics sectors.
Nevertheless, Ahmad emphasised that Bulog’s primary role remains as the absorber of production outputs in the national food supply chain.
“Yes, as off-taker, responsible for processing and distributing (strategic food commodities) to the entire Indonesian population,” he said.
He added that in strengthening the national food sector, production roles could be carried out by other parties according to their respective duties and functions as SOEs.
“If planting is assigned, it might go to others, but we are obligated to absorb, in line with Bulog’s duties for stabilisation as well as logistics distribution,” he stated.
He explained that this division of roles is important to ensure the food supply chain operates effectively from production to distribution.
According to him, the commodities of concern include rice, corn, and soybeans as part of efforts to maintain supply stability and food prices.
In addition, Bulog also plays a role in ensuring food logistics distribution reaches all regions of Indonesia, including remote areas.
As part of its stabilisation function, Bulog manages the Government Food Reserve (CPP), which is used to maintain the availability and affordability of rice prices in the market.
The government targets strengthening government rice reserves to around 4 million tonnes gradually to support national food stability.
These efforts are also supported by government policies in the form of a 2% interest subsidy for Bulog to enhance financing capacity in pursuing the 4 million tonne rice equivalent absorption target.
As of mid-April 2026, Bulog’s rice absorption realisation has reached about 48.7% or approximately 1.9 million tonnes of the target, while rice stocks are recorded at around 4.7 million tonnes.
Furthermore, Ahmad emphasised that Bulog will continue to support government policies in maintaining national food security through its absorption and logistics distribution functions.