The existence of Bulog as a state-owned enterprise which, along with the National Food Agency, are tasked with stabilizing the food price and stock, is very significant and strategicJakarta (ANTARA) - The National Food Agency (NFA) has supported the State Logistics Agency (Bulog) to absorb more food commodities, in addition to rice, to diversify the government's food stock.
"The existence of Bulog as a state-owned enterprise which, along with the National Food Agency, are tasked with stabilizing the food price and stock, is very significant and strategic," NFA Head Arief Prasetyo Adi noted in a statement here on Tuesday.
Hence, Bulog will need to continue its transformation to make it an agile and adaptive SoE, he remarked.
Adi has encouraged the agency to diversify and increase the volume of stock of food commodities, as volatile food prices had caused inflation.
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As more food commodities could be absorbed by Bulog, and the level of supply could be secured, the agency would improve its role as the state food reserve company.
Earlier, the NFA had emphasized the need to strengthen national food reserves as the key to deal with the food crisis and inflation.
He said the government's food reserves will affect food supply and price stabilization, as stable food prices can slow down the inflation rate.
Moreover, food reserves can be used for emergency intervention, such as to help the victims of natural disasters.
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When the supply could meet domestic demand, the government's food reserves can be used as global aid, he affirmed.
Earlier in August, Bulog's Corporate Secretary Awaludin Iqbal echoed the company's readiness to secure stocks of other food commodities.
Awaludin said, President Regulation Number 48 of 2016 on Bulog stipulated that the agency is tasked with securing the supply of rice, corn, and soybean.
Currently, Bulog has only absorbed rice to secure its level of stock.
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Translator: Aji Cakti, Sri Haryati
Editor: Fardah Assegaf
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