It is our collective duty to create an ecosystem that could support economic development for the peopleJakarta (ANTARA) - Synergy is required to build the Warehouse Receipt System (WRS) ecosystem in Indonesia to perform the best and boost the prosperity of farmers in Indonesia, Vice Minister of Trade Jerry Sambuaga stated.
In his statement received here on Friday, Sambuaga highlighted several necessary factors to build the WRS ecosystem.
The various crucial factors are support from the central and regional governments as well as WRS institution, independent and professional warehouse managers, supporting infrastructure, creation of distribution networks, and farmers or fishermen's institutions in WRS warehouses.
"These factors can create an ecosystem that could sustain WRS, which can hopefully offer economic benefits for a broader society," Sambuaga stated.
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"It is our collective duty to create an ecosystem that could support economic development for the people," he remarked.
The Ministry of Trade has built the WRS since 2006 in order to address challenges faced by the region's farmers in getting a profitable price during harvest, he noted.
This construction is being carried out by the ministry's Commodity Futures Trading Regulatory Agency (Bappebti) in cooperation with PT Kliring Berjangka Indonesia (KBI), a state-owned financial service company.
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The vice minister revealed that to support the construction of WRS, the warehouses, along with their facilities, were built using the state budget of the area where the production center resided.
"Currently, 123 WRS warehouses are built by the ministry in several regions in Indonesia. Through WRS, farmers can store their commodities for three to five months, and they can sell them when the price is profitable," he noted.
WRS can also be used as a trade financing system instrument through credit distribution for farmers and becomes the solution to address the matter of supply surplus, Sambuaga noted.
"WRS is useful to maintain stability in commodity prices in the market and become the government instrument for the provision of national food," he explained.
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Translator: Sella Gareta, Fadhli Ruhman
Editor: Fardah Assegaf
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