President Prabowo Subianto has committed to changing Perum Bulog's status from a state-owned enterprise to a new government body directly under the president. This step aims to accelerate food self-sufficiency as a priority in the Merah Putih Cabinet. Bulog's transformation will focus on efficiency and farmer empowerment.
Perum Bulog, responsible for national food management, was established on January 21, 2003, based on Government Regulation No. 7 of 2003, amended by PP No. 61 of 2003 and PP No. 13 of 2016. Originally as Badan Urusan Logistik (BULOG) directly under the President, its status changed to a state-owned enterprise due to IMF initiatives, shifting coordination to the Ministry of SOEs and other technical ministries.
Over 21 years as a BUMN, Bulog has emphasized social functions more than business, such as implementing the Direct Rice Assistance Program for 22 million beneficiary households. Despite expectations to become a 'food business giant,' Bulog has not achieved optimal business performance.
Since Prabowo Subianto's inauguration, Bulog has been positioned to support food self-sufficiency. The President has tasked Bulog executives to prepare a Roadmap for Institutional Transformation into an autonomous body directly under the President, eliminating its BUMN status. This transformation is defined as a total structural change toward a better system, including boosting productivity through technology, developing infrastructure like irrigation and warehouses, empowering farmers via training, and agribusiness for added value in agricultural products.
Challenges include inadequate infrastructure, limited resources, and complex regulations, requiring in-depth analysis. As a parastatal institution, Bulog is expected to act as an off-taker for farmers' harvests at fair prices, protecting them from middlemen, and optimizing roles in rice procurement, distribution, and imports. This step will make Bulog more agile and effective in supporting farmers and societal welfare.