TEMPO.CO, Jakarta-The State-Owned Enterprise (SOE) Ministry has prepared five steps to strengthen the National Logistics Agency (Bulog) to increase national rice reserve. The strategy is part of the ministry’s agenda until 2019.

Deputy for Business Infrastructure Sector of the SOE Minister Wahyu Kuncoro explained that Bulog’s first strategy is to work on agriculture. “But that doesn’t mean that Bulog will be farming,” he said in Jepara, Central Java, on Saturday, November 21.

Bulog recommends that the government acquires new land.

Second strategy is modernizing additional storage facilities. Wahyu said that the storage capacity owned by Bulog is just 3.9 million ton or equal to 6-7 percent. “We will add this to become 15 percent.”

Next, Bulog will absorb crops. Wahyu says the absorption through an offtake agreement is to give supply certainty for Bulog. “Fourth is the development of food distribution channels,” he said.

The last strategy is reinforcing of Bulog function. Wahyu said Bulog will have its subsidiary in charge of distribution. The subsidiary will be integrated with two SOEs, PT Sang Hyang Sri and Pertani, as well as PHC. “Bulog will also be coordinating with SOEs of logistics and distribution function,” he said.

SINGGIH SOARES