Perum Bulog, Indonesia’s state logistics agency, has put forth a proposal to implement a 7% margin fee for its crucial rice distribution operations. This initiative, currently under government review and discussed in various meetings, aims to significantly enhance Bulog’s service delivery across the archipelago, particularly in establishing a uniform rice price from Sabang to Merauke.
Ahmad Rizal Ramdhani, President Director of Bulog, emphasized that this proposed increase in the margin fee is a strategic move to optimize their services. “With a higher margin fee, Bulog will be able to improve its service, especially for ensuring a single price for rice from Sabang to Merauke,” Ahmad stated during a press conference in Jakarta on Friday (2/1).
One of the key beneficiaries of this adjusted margin would be the Stabilized Supply and Food Price (SPHP) rice program. Currently, SPHP rice prices are categorized into three distinct zones. The proposed margin increase is intended to standardize these prices nationwide, thereby facilitating the crucial funding for the distribution and transportation of rice to various regions across Indonesia where current logistical costs are high. Bulog expects that with the increased margin, the price of SPHP rice could be harmonized at around Rp 11,000, aligning with warehouse prices.
Under the current Highest Retail Price (HET) regulations, SPHP rice is priced at Rp 12,500 per kilogram for Zone 1 (Java, Lampung, South Sumatra, Bali, NTB, Sulawesi) and Zone 2 (Sumatra excluding Lampung and South Sumatra, NTT, Kalimantan). For Zone 3 (Maluku, Papua), the price is higher at Rp 13,500 per kilogram. Beyond achieving food self-sufficiency, the 7% margin proposal also seeks to align Bulog’s operational framework with other state-owned enterprises, such as PLN and Pertamina, which already benefit from similar margin structures to deliver nationwide uniform pricing for their respective products, like fuel.
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The urgency for this margin adjustment is underscored by Bulog’s current financial constraints. Coordinating Minister for Food, Zulkifli Hasan (Zulhas), highlighted that Bulog’s absorption of 3 million tons of rice yields a mere Rp 150 billion. This amount is woefully inadequate for financing extensive national cross-regional distribution, especially to Indonesia’s remote eastern provinces.
With such a limited margin of only Rp 50 per kilogram, Zulhas elaborated, achieving a single rice price in challenging areas like Papua and Maluku becomes nearly impossible due to prohibitively high logistics costs and the vast distances involved. “Bulog is only given a margin of Rp 50 per kg, multiplied by 3 million tons of absorbed rice, which results in Rp 150 billion. How can it send rice at one price to Papua, to Maluku? It’s simply not possible,” Zulhas was quoted by Antara on Friday (2/1).
To address this critical issue, the government is set to deliberate on the adjustment of Bulog’s margin fee in collaboration with the Financial and Development Supervisory Agency (BPKP). This partnership aims to meticulously calculate the real needs, ensuring that the ambitious single rice price scheme is implemented effectively, transparently, and accountably across the nation, fostering integrated, sustainable, and consistent regional distribution.
Zulhas expressed optimism that an increased margin will significantly bolster Bulog’s pivotal role in maintaining price stability, ensuring equitable supply, and improving access to affordable food for all Indonesian communities. “We will calculate carefully to ensure the success of a single rice price throughout Indonesia,” Zulhas affirmed, signaling the government’s commitment to strengthening national food security.
Summary
Perum Bulog has proposed a 7% margin fee to
