The Indonesian government has embarked on a proactive strategy to safeguard the nation’s garlic supply, enlisting the expertise of ID Food, a state-owned food enterprise, to oversee the importation of 20,000 tons of garlic from China. This significant development was unveiled by the National Food Agency (Bapanas) following a recent Limited Coordination Meeting (Rakortas), convened with the specific aim of accelerating the procurement process and ensuring an ample garlic stockpile.
“At the conclusive Rakortas session before Lebaran, it was unanimously decided to entrust ID Food with this pivotal responsibility,” affirmed Bapanas Head Arief Prasetyo Adi during a press briefing in Jakarta on Thursday (18/4/2024). “This initial import of 20,000 tons of garlic is a cornerstone in the establishment of a Central Buffer Stock (CBP) to fortify the government’s reserves,” he expounded.
Ensuring the seamless execution of this import endeavor hinges upon the expedited issuance of Garlic Import Recommendation Permits (RIPH) by the Ministry of Agriculture and the expeditious granting of Import Permits (PI) by the Ministry of Trade. Arief underscored the indispensable contributions of both ministries in facilitating a timely and efficient importation process.
The financial backing for this ambitious initiative stems from a Rp 28.7 trillion budget allocated by the Ministry of Finance, a testament to the government’s commitment to fortifying food security. This budget, secured through collaborative efforts with Himbara banks, offers preferential interest rates to expedite the importation process. Currently, Perum Bulog stands as the sole state-owned food company to have availed itself of these funds.
“Bulog currently holds Rp 13 trillion from these low-interest funds, with RNI actively pursuing access to its allocated share,” elucidated Arief. “This will enable RNI to actively engage in bidding with Chinese suppliers for the procurement of 20,000 tons of garlic, valued at Rp 28 billion, thus replenishing the government’s reserves,” he affirmed.
Arief further underscored that the establishment of a government garlic reserve will empower Bulog to effectively intervene in the market and stabilize garlic prices, thereby mitigating potential price fluctuations. This strategic intervention aligns seamlessly with the assurances provided by Trade Minister Zulkifli Hasan regarding the smooth progress of garlic imports. In fact, the Ministry has already issued import permits for a substantial 300,000 tons of garlic to fulfill domestic demand, underlining the government’s proactive stance in safeguarding food security.
