JAKARTA – To maintain the stability of food supply and prices, the President of the Republic of Indonesia, Joko Widodo, on October 24, 2022, signed the Presidential Regulation of the Republic of Indonesia (Perpres) Number 125 of 2022.
The regulation is said to regulate the type, amount, implementation, as well as assignment and funding of the Government Food Reserve (CPP) project.
Chief of The National Food Agency (NFA) Arief Prasetyo Adi then kindly welcomed the ratification.
When confirmed by The Editor, in his written statement, Arief explained that this regulation is the basis for strengthening governance and the national food ecosystem.
He said that NFA will oversee the execution and implementation of this Presidential Regulation in a comprehensive and detailed manner, starting from storage, maintenance, distribution of stock between regions, and stock release.
This regulation, he continued, is proof of the state’s presence in protecting the food ecosystem, by providing price certainty at the producer level (farmers, ranchers, and fishermen) so that they can continue to produce and price certainty at the consumer level.
By having strong food reserves, Arief believes the government can intervene to overcome food shortages and price fluctuations as well as anticipate unpredictable conditions.
Arief also hopes that this CPP regulation can be optimized to address food needs in the event of natural disasters, social disasters, and other emergencies, as well as foreign food assistance.
From Arief’s statement, it is known that the CPP Regulation regulates 11 staple foods including rice, corn, soybeans, onions, chilies, poultry meat, poultry eggs, ruminant meat, sugar consumption, cooking oil, and fish.
It is reported that the implementation of the CPP Regulation will be carried out in several stages, wherein the initial stage will focus on rice, corn and soybean commodities.
“Nine of the eleven commodities designated as CPP are strategic commodities that are currently being managed by the NFA in accordance with Presidential Regulation Number 66 of 2021,” he said.
“There are two additional strategic commodities, cooking oil and fish. In addition to these eleven commodities, the President can also stipulate other types of Certain Staple Foods as CPP.”
“The determination of the number of CPP is carried out at least once a year. In addition, NFA also plays a role in setting quality standards for each of these commodities, distribution targets, and CPP procurement targets,” he added.
To ensure the implementation is in accordance with good governance, Arief explained, in the near future the NFA will formulate technical rules from various aspects, including those related to funding.
Ministries and institutions that participate in implementing the CPP Regulation are the Ministry of Finance, Ministry of SOEs, Himbara (state-owned bank association), and food SOEs.
“In addition, we will also prepare technical rules related to the procurement scheme. CPP funding comes from the APBN and/or other legal and non-binding sources,” he said.