New Government Regulation, BULOG Becomes Corn Investment Operator

The government is finalizing the Draft Regulation of the Minister of Finance (Draft Regulation) on Government Investment in the Public Corporation (Perusahaan Umum/Perum) BULOG for the Procurement of Government Corn Reserve (Cadangan Jagung Pemerintah-“ CJP ”). This legal instrument will provide the basis for assigning Perum BULOG as a government investment operator, particularly in the procurement of corn reserves from domestic production.

“The harmonization process is underway at the Ministry of Law because this is a form of investment, so it is expected to generate returns and improve the efficiency of the State Revenue and Expenditure Budget (Anggaran Pendapatan Dan Belanja Negara- “ APBN ”),” said an official from the Directorate-General of Treasury at the Ministry of Finance who declined to be named to Hukumonline.

The procurement of CJP will be funded through government investment funds sourced from the APBN and channeled through the State Treasury Investment Account (Rekening Investasi Bendahara Umum Negara/RIBUN). The proceeds from the release of corn reserves will be reinvested as revolving funds.

In its implementation, Perum BULOG must apply principles of accountability, risk management, and prepare periodic reports for evaluation by the Government Investment Committee (Komite Investasi Pemerintah/KIP). This will provide benefits in the form of increased national food security, corn self-sufficiency, and income for local farmers.