- The government recently issued Regulation of the President No. 125 of 2022 on the Organization of Government Food Reserves ("Regulation 125/2022") in an effort to maintain the availability of food throughout Indonesia through the control and management of food reserves by State-Owned Enterprises (Badan Usaha Milik Negara – "BUMN").
- The scope of Regulation 125/2022 encompasses types and amounts of food reserves, the organization of food reserves, delegation to the BUMN and funding. When organizing food reserves, the National Food Agency should draw up targets for the distribution and procurement of food reserves. The organization of food reserves will then be conducted through the following activities: 1) Procurement; 2) Management; and 3) Distribution.
- Procurements of food reserves should be conducted through the prioritization of purchases of domestically produced foods, including purchases from BULOG and/or BUMN operating within the food sector. Moreover, during the management of food reserves, the following mechanism will be applicable: 1) Dynamic circulation of stocks based on operational requirements; and/or 2) Utilization of technology in order to maintain the quality and lengthen the shelf lives of food products.
- Regulation 125/2022 has been in force since 24 October 2022.
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