Coordinating Minister for Food Affairs Zulkifli Hasan said the 100 Bulog warehouses plan aims to strengthen the national food logistics system in rice production centers and to provide a concrete solution to farmers' complaints about limited storage facilities.
"The order came from President Prabowo Subianto, a manifestation of the government's role in strengthening the supply chain," he remarked while witnessing the decree signing on Tuesday.
The decree was signed by Agriculture Minister and National Food Agency (Bapanas) Head Andi Amran Sulaiman, Home Affairs Minister Muhammad Tito Karnavian, Head of the State-Owned Enterprises Regulatory Agency (BP BUMN) Dony Oskaria, and a Finance Ministry representative.
The warehouses will be built throughout Indonesia with a budget of Rp5 trillion (US$291 million). Construction will be carried out in stages to ensure accelerated absorption of harvested crops, particularly unhusked rice and corn from farmers.
According to the new BP BUMN Law, each assignment requires a Joint Decree (SKB) between the BP BUMN and the relevant ministry.
Upon SKB issuance, a Presidential Instruction or Presidential Regulation will follow.
According to Minister Hasan, the construction of the 100 warehouses is deemed necessary due to the rise in national rice production.
Statistics Indonesia (BPS) projects that rice production throughout 2025 will reach 34.77 million tons, up from 30 million tons the previous year.
With the support of clear policies and response from the government, the construction of the 100 warehouses is expected to streamline the supply chain, increase harvest absorption, and improve the welfare of farmers throughout Indonesia.
"Next year, we will produce more rice as well. Not to mention new land, irrigation, superior seeds, and now we are giving a 20 percent discount on fertilizer. This (warehouse) is our form of preparation," the minister remarked.
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Translator: Resinta Sulistiyandari
Editor: Azis Kurmala
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