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Iklan Government Priority Programs Can Change Commodity Balances The Presidential Decree on Commodity Balance has the potential to become a red carpet for the Free Nutritious Meal and Free Milk programs
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TEKS BPMI SEKRETARIAT PRESIDEN/VICOPresident Joko Widodo visited Gelugur Market in Rantauprapat
The President checked the prices and availability of food commodities
JAKARTA, KOMPAS — The government has updated the reference for exports and imports of commodities needed by society and industry through Presidential Regulation Number 61 of 2024 concerning Commodity Balance Sheet
The balance sheet can be changed under certain conditions
including when it concerns priority government programs
The new regulation established by President Joko Widodo on May 21
The regulation will come into effect on June 20
Commodity balance is data and information that contains the consumption and production situation of certain commodities for the needs of the population and industrial purposes within a specified period
The data and information must be verified and sourced from accountable sources
The function of the balance sheet is as the basis for issuing export and import approvals
as well as a reference for data and information on the national scale consumption and production situation of a commodity
the balance sheet can serve as a reference for data and information on the condition and projection of national industrial development and as a reference for issuing business licenses to support export and import activities
Also read: RI's Trade Balance has been in a Surplus in a Series for the Last Four Years
Article 24 of the regulation states that the government-designated commodity balance can be altered under certain conditions
These conditions include natural disasters
The other conditions referred to include new submissions and requests for changes to ease plans
it may be in the form of resubmitting proposals for previously rejected demand plans
Executive Director of the Center of Reform on Economics (CORE) Indonesia
2024) that the basic principle of the presidential regulation is to maintain a balance between the needs and production of commodities required by the community and industry
accurate commodity balance data is required
"The accuracy of the balance data is crucial as it will determine whether import or export policies for commodities are appropriate or not
We should not make policies that end up harming domestic producers or industries," he said when contacted from Jakarta
Also read: Rice Stock Puzzle and Data Improvement Efforts
the same principle also applies to commodity balance related to the government's priority programs
the import of iron and steel for the project must be measured so as not to harm the domestic iron and steel industry
What often happens instead is the prioritization of imports
ranging from the pursuit of quick completion targets to domestically produced iron and steel that do not meet specifications and are more expensive
"The excuses have continued to emerge for the past decade without being accompanied by efforts to optimize the capacity and quality of iron and steel development domestically," he said
Activity at the PT Waskita Karya Infrastruktur factory produces various steel fabrication products with Computer Numerical Control (CNC) machines and several other European-made fabrication tools in the Modern Industrial Area of Cikande
Steel fabrication products are made to support various projects
61/2024 has the potential to become a red carpet for the Nutritious Eating and Free Milk program
The program is one of the priority programs of the elected president and vice president for 2024-2029
The program is considered to be able to influence a surge in food demand
If it is not followed by an increase in domestic production
the balance of related commodities will be deficit
Faisal stated that the Free Milk Drinking program will increase the deficit of the milk commodity balance even further
To balance consumption needs with milk production
Also read: ”1,001” Consequences of the Free Milk Drinking Program
In order for that political promise to be realized quickly
optimize the production of milk that already exists within the country
Involve milk producers and small-medium enterprises
The program should not become a profit for large corporations," said Faisal
The Free Milk Program targets 82.9 million people
Islamic boarding school students and pregnant women
with a total milk need of 4.1 million tons per year
The program will cause the average annual milk demand to increase from 4.6 million tonnes to 8.7 million tonnes
With the national annual milk production averaging 0.9 million tons
there will be a deficit of 7.8 million tons of milk or equivalent to 2 million dairy cows
the deficit of milk will be as much as 3.9 million tons
Also read: Indonesia Plans to Import 2.15 Million Dairy Cows
Referring to data from the National Milk Production Enhancement Program (PPSN) of the Ministry of Agriculture
2.15 million dairy cows are needed to fill the milk deficit
with 1.5 million mainly being tropical dairy cows
the remaining 500,000 will be from the United States
the imported cows needed for the Free Milk Drinking program are 1.1 million
The funding required to bring in these cows is around IDR 90 trillion
The National Food Agency (Bapanas) assesses that the commodity balance sheet is not only a reference for commodity import and export policies
This balance sheet can also be a reference for policies to increase domestic production
stated that the government is currently working to increase the production of beef and buffalo meat
Indonesia has been importing beef and buffalo meat to fill the deficit in the consumption-production balance of meat
The government is committed to developing domestic cattle farming
Referring to the National Food Balance Projection 2022 compiled by Bapanas
the national demand for meat consumption is 819,000 tons
domestic meat production is only 459,000 tons
so additional supply is needed from partner countries' procurement
the government is committed to developing cattle farming in the country
One of them is bringing in cattle from tropical countries that resemble Indonesia so that the cattle will not have difficulties in the acclimatization process," he said through a press release
Also read: Cattle Farming Needs to Become a Strategic Project
answered questions from journalists following a limited meeting regarding the increase in production and downstreaming of food products at the Presidential Palace in Jakarta on Monday (10/7/2023)
the government will cooperate with other countries to develop animal husbandry and cattle fattening systems
Sweden to study the system and possible cooperation schemes
"One of the cooperation schemes is joint operation/joint venture
"This scheme allows the transfer of knowledge and technology for cattle farming management," he said
Also read: Suing the Beef Import Chain
Arief added that Indonesia could also study the free-range pattern developed by cattle farms in Bona-Munsö
This pattern is an alternative livestock rearing system that combines pens and pasture.