Strengthening Cold-Chain Interconnectivity Based on Regional State-Owned Enterprises for National Food Security
Jakarta — The governance of food is a joint responsibility between the central government and regional governments as mandated by Law No. 18 of 2012 on Food. Rochayati Basra, Head of the Policy Strategy Center for Development, Regional Finance and Village Affairs (BSKDN) at the Ministry of Home Affairs, said this during a Focus Group Discussion on the strategic role of the Ministry of Home Affairs in building interconnectivity of the cold chain based on Food BUMDs to strengthen national food security in Jakarta.
“Regional governments hold a highly strategic role in ensuring smooth distribution, stabilising supply, and managing logistics effectively. In this context, strengthening Food BUMDs is a concrete step towards building an integrated cold chain system,” she said.
She noted that the Act also states that food affairs are a concurrent government matter under regional authorities; therefore, local government devices together with BUMDs have an important role in building a sustainable food distribution system.
Based on data collection and interviews with six local governments — East Java, South Sulawesi, Tanah Datar Regency, Sumenep Regency, Surabaya City and Balikpapan City — Food BUMDs are seen as an implementable and realistic approach to strengthening distribution interconnectivity and cold chain systems at the regional level.
However, implementation faces three main challenges: lack of strong regulation governing BUMD capital participation in the food sector; high operating costs and a low utilisation rate not yet at break-even; and operational risks due to suboptimal cold storage capacity.
Therefore, focused interventions are required through drafting a legal umbrella for BUMD capital participation, the application of energy incentive schemes, and a mechanism to guarantee supply volume to ensure cold chain operations are sustainable. The results of this strategic study are expected to inform policy recommendations to the Minister of Home Affairs to be conveyed to the President of the Republic of Indonesia as part of strengthening the national food system.
Hasanuddin Yasni, a representative of the Indonesian Cold Chain Association, emphasised the importance of the cold chain ecosystem in supporting national food self-sufficiency. He stated that strengthening the cold chain requires readiness of facilities and infrastructure, improved human resource capacity, and collaborative business models. “Most important now is how these BUMDs can spur the regional economy through collaborative business models; in the future, if we are limited not only by human resources but also investment,” he concluded.
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