President Jokowi Orders Integration of State-Owned Enterprises in Food Sector

Head of the National Food Agency Arief Prasetyo Adi delivers a press statement following a meeting on the integration of SOEs in food sector at the Presidential Palace Complex in Jakarta, Monday (02/06). (Photo by: PR of Cabinet Secretariat/Rahmat)

President Joko “Jokowi” Widodo has ordered his administration to integrate state-owned enterprises (SOEs) in food sector, Head of the National Food Agency Arief Prasetyo Adi said.

“The President stated that our people focus on production and SOEs can be assigned as offtakers, so farmers’ income will not be very low and production will boost. Thus, SOEs can be integrated, Arief said after attending a meeting on the integration of SOEs in food sector at the Presidential Palace Complex in Jakarta, Monday (02/06).

According to Arief, President Jokowi stated that the infrastructure must be prepared, including storage equipment such as large cold rooms to extend product shelf life.

As for budgeting, Arief pointed out that it will be sourced from the State Budget and the current and saving account of the State-Owned Bank Association (Himbara).

“Current and saving account has a low rate. It needs to be synchronized by [central bank] Bank Indonesia and Minister of Finance,” he said.

Arief also stated that in order to speed up food SOE integration, related regulations must be harmonized.

“Several ministerial regulations must be synchronized. That is also our focus. As for the target, the President ordered us to return in two weeks with a prepared regulatory draft,” he said.

For the record, Arief also made a statement about rice and cooking oil.

According to Arief, rice price was not discussed at the meeting. However, he added, the President has previously ordered the administration to carry out a massive market operation so that the available supplies of the State Logistics Agency (BULOG) can be immediately distributed.

Arief further said that rice supplies at Cipinang Rice Central Market in East Jakarta are monitored by the Food Task Force to ensure that the prices remain stable.

As for cooking oil, Arief stated that the production of government-subsidized cooking oil Minyakita is to be increased from 300,000 tons/month to 450,000 tons/month for the next three months. (RF/AIT/SND) (DH/LW)