Bulog Asked to Prepare a Regulation to Anticipate Losses from Absorption

Member of Commission IV of the House of Representatives (“ DPR ”), Firman Soebagyo, proposed that the Logistics Affair Agency (Badan Urusan Logistik– “ Bulog ”) establish regulations to anticipate losses in the absorption of farmers’ production results. This is due to the continued occurrence of production outputs that are deemed substandard.

“If there are losses later on, since Bulog uses commercial loan funds from banks, who will bear the cost?” said Firman to Hukumonline.

When an institution faces losses due to a government-mandated assignment that is enforced, there must be someone held accountable. He leaves it to the state-owned enterprise to determine the form of the regulation.

“We remind them that they must prepare regulations, so they don’t end up bearing the burden,” Firman continued.