NFA issues regulation on sugar, cooking oil reserves’ management

Jakarta (ANTARA) – The National Food Agency (NFA) has issued a regulation on sugar and cooking oil reserves’ management.Head of NFA Arief Prasetyo Adi noted in a statement here on Saturday that sugar and cooking oil are among 11 food commodities under the agency’s authority based on Presidential Regulation No. 125 of 2022 on government’s food reserves (CPP). “We will handle this one by one. Earlier, we have issued a regulation on food reserves for rice, corn, and soybean. Now, we have the regulation on sugar and cooking oil reserves,” Adi stated. With a strong food reserve, he said, NFA could intervene in the market to stabilize food supply and prices, especially in certain circumstances when there are price fluctuations, natural disasters, and other emergency situations. Under the regulation, the agency will task state-run food companies and the State Logistics Agency (Bulog) regarding handling the amount of reserves, management, monitoring, evaluation, reporting, and funding. Food reserve management, based on the regulation, would cover the three main aspects of provision, management, and distribution of food commodities. The NFA, in its food reserve monitoring, would involve the State Enterprises Ministry, local apparatus in the food sector, and the Indonesian Police’s Food Task Force. ccording to Adi, the state-run food company will apply the mechanism of dynamic stock. For sugar reserves, this mechanism will take into account the distribution plan, sugar milling season, lead time, and economic value, while for cooking oil, it will consider the distribution plan, lead time, and economic value. di stated that the NFA will issue derivative regulations to set the Government Purchase Price (HPP) for the two commodities.

Source: Antara News Agency (ANA)