Jakarta (ANTARA) – The National Food Agency (NFA) has issued a regulation on the management of sugar and edible oil reserves.
NFA chief Arief Prasetyo Adi pointed out in a statement here on Saturday that sugar and cooking oil are among the 11 food products under the jurisdiction of the agency based on Presidential Decree no. 125 of 2022 on government food reserves (CPP).
“We will deal with it one by one. Earlier we passed a decree on food reserves for rice, corn and soybeans. Now we have a decree on reserves for sugar and edible oil,” Adi said.
With strong food reserves, he said, the NFA could intervene in the market to stabilize food supply and prices, especially in certain circumstances when there are price fluctuations, natural disasters and other emergencies.
According to the decree, the agency will task the state-owned food companies and the State Logistics Agency (Bulog) with regard to the management of the amount of reserves, management, monitoring, evaluation, reporting and financing.
The management of food reserves, based on the regulation, would cover three main aspects of provision, management and distribution of food products.
The NFA, in its monitoring of food reserves, would involve the Ministry of State Enterprises, the local apparatus in the food sector and the Food Task Force of the Indonesian Police.
According to Adi, the state-owned food company will implement a dynamic inventory mechanism.
For sugar reserves, this mechanism will take into account distribution plan, sugar milling season, delivery time and economic value, while for edible oil it will take into account distribution plan, delivery time and economic value.
Adi stated that the NFA will issue derivative regulations to determine the government’s procurement price (PE) for the two commodities.
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