State-owned Enterprises (SOE) Minister Erick Thohir echoed the commitment of SOE to function as off-takers of staple foods in an endeavor to anticipate next year's crisis.
"State-owned enterprises are ready to become off-takers of staple goods next year. However, the condition is that it needs to be backed up by a clear assignment from the government for the enterprises to adopt the off-taker function," Minister Thohir noted in his statement received here on Wednesday.
This assignment is deemed necessary, so that these leaders would have no doubts in fulfilling the off-taker function and neither would they be concerned about allegations that would be leveled against them, he remarked.
He emphasized that the off-taker function must be regulated to ensure huge funding for which the Association of State-Owned Banks (Himbara) kept at low interest. These funds enable SOEs to get staple food from farmers, at any time, both when prices rise or fall.
"Later on, Bulog can become a buyer of staple foodstuffs from farmers (whose harvests) are decided by the government, such as rice, corn, sugarcane, and others. This is part of the efforts to secure the food supply chain. This is important because the world's supply chain conditions will still be disrupted next year," he noted.
The function of SOEs in food security is a form of anticipation to reduce the food prices. The high risk for inflation next year could be caused by two sources: the high price of fuel oil and rising food prices.
"Hence, SOEs must help other ministries on intervening in food needs that fluctuate and fall, but still with clear assignments, which are market orientation and which are non-market assignments. One of the mechanisms being pushed is large funds being kept in Himbara with low interest. ID Food can then be assigned as a market, and Bulog as a stabilizer," the minister stated.
The global supply chain is expected to still be disrupted next year. Since one of the keys is to survive, Indonesia must be able to maintain the conditions of national food supply chain, he noted. Hence, SOEs are ready to participate in maintaining national food security.
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