Jakarta, Indonesia Sentinel — The Indonesian government is preparing a budget of approximately Rp6 trillion (around USD 370 million) to purchase one million tons of local corn, in an effort to stabilize domestic prices and ensure adequate supply.
The program will be implemented through the state logistics agency, Perum Bulog, and was proposed by the Ministry of Agriculture with direct endorsement from President Prabowo Subianto, according to Arief Prasetyo Adi, head of the National Food Agency (Bapanas).
“We’re assigning Bulog to procure one million tons. At Rp5,500 per kilogram, that comes to around IDR 5.5 to 6 trillion when including other associated costs,” Arief said during a press conference in Jakarta on Thursday.
The structure of the program mirrors a previous Government Investment Operator (OIP) scheme, in which funds were allocated to Bulog to absorb farmers’ rice at a reference price of Rp6,500 per kilogram.
Coordinating Minister for Food Affairs Zulkifli Hasan, also known as Zulhas, stated that the purchase price for corn will be set at Rp5,500 per kilogram, with a moisture content of 18–20 percent, typical of post-harvest conditions. However, implementation of the policy has yet to begin due to pending budget disbursement.
“Bulog can only act once the funds are available. As of now, the budget has not been released,” Zulkifli said, noting that the Ministry of Finance’s Directorate General of Budget has been urged to expedite the allocation process.
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Zulkifli estimated that the total funding requirement, including logistics and operational costs, would reach about Rp6 trillion. He emphasized the urgency of unlocking the funds so that Bulog can start procurement efforts in the field.
The government hopes the corn absorption program will offer price certainty for farmers amid volatile market conditions and help build national food reserves, particularly for livestock feed and the processing industry. Officials also aim to curb feed price fluctuations, which have contributed to recent food inflation.
The National Food Agency previously reported that Indonesia is experiencing a corn surplus. As of the corn balance sheet forecast on June 2, 2025, consumption needs from January through July are expected to total 8.63 million tons. These needs have already been met, leaving an estimated surplus of 380,000 tons.
Authorities say this excess supply could be used to boost stocks under the Government Food Reserves (CPP) scheme or be earmarked for export. The milestone adds momentum to Indonesia’s broader push toward national food self-sufficiency.
(Raidi/Agung)
