Majalah Dinamika, hlm, 31-33, Vol 39, No. 2, Triwulan 2, Tahun 2015. ISSN 1907-2201

STRENGTHENING THE FUNCTION OF PUBLIC-COMPANY BULOG UNDER THE FOOD LAW

Ikomatussuniah, SH., MH.

Law Faculty of Sultan Ageng Tirtayasa University 

A: Jl. Raya Jakarta KM. 04 Pakupatan Serang

E: Ikomatussuniah80@yahoo.co.id

Introduction

      Of all Indonesia identities, Pancasila becomes the most embedded in the people’s mind which is identical with abundant resources. The resources are managed according to the local wisdom in every single region. The regions are included in the framework of The United State of Republic of Indonesia (said ‘NKRI’). The system of government management in such framework is responsible for implementing pro-people programs in order to realize the nation's welfare which is in line with the Indonesian people’s objective included in the fourth passage of the opening of 1945 Constitution. One of the representations of the welfare is through a good guarantee of food availability for all people. The system should be able to build a network of procedures which are integrated one another under a strong scheme to drive the creation of good and sustainable food system. This food system is a description of how the food regulatory mechanism is done by the state government and driven by the President as the highest position in the state government management. The public-company BULOG is an institution initiated from the Food Law, which is implemented by Presidential Decree to establish BULOG as the national logistics institution. The function of this institution is suggested to be strengthened, so the food regulation can run well and maximally.

Strengthening the Function of BULOG under the Food Law

       Food is the primary need for human-beings. And, a country, Indonesia in particular, has an obligation to realize the availability, accessibility, and fulfilment of food consumption that is adequate, safe, qualified, and nutritionally balanced either at the national level or the regional and individual ones equally and continuously through exploiting the resources, institutions, and local wisdom. Since Indonesia is a country with a great number of inhabitants and has various natural and food resources, it must be able to fulfil the food need sovereignly and autonomously. This becomes a fundamental consideration in constructing the Food Law. The food legislation is included in the 1996 Food Law No. 7 which has been amended by the 2012 Food Law No. 18. According to the Law, article I, food is everything, raw or processed, originated from biological resources as a product of agriculture, plantation, forestry, fishery, animal farming, and water, which is used as food or drink for human consumption including its additives, raw materials, and other materials used in the preparation, processing, and/or manufacturing of food and drink. In terms of realizing food sovereignty and autonomy, as well as national food security according to the 2012 Food Law No. 18, article 126, therefore, it is established a government institution concerning to food under and accountable to the President.

       The Logistic Affairs Institution (BULOG) is an institution mandated by the Food Law from the implementation of Presidential Decree as the agency that implements price stability and manages the national food stocks. Like BULOG, there are many institutions concerning to food around the world. BULOG is a representative institution regulating the food stock and food price stability in order to realize the food availability and price affordability corresponding to the people’s financial ability. The history of BULOG as cited on www.Bulog.co.id, has been changing regarding its duty from time to time as follows.

1.      On May 10, 1967 under the Presidium Cabinet No. 114/U/P.D./5/1967, BULOG obliges to secure the food availability in order to uphold the existence of New Government.

2.      On January 21, 1969 under Presidential Decree No. 39/1969, BULOG obliges to stabilize the rice price.

3.      P.D. No. 39/1987, BULOG is responsible for supporting the development of multi food commodities.

4.      P.D. No. 103/1993, the Head of BULOG was concurrently held by the Ministry of Food Affairs. According to the decree regarding the Logistic Affairs Institution (BULOG), it is a non-departmental institution under and accountable directly to the President. BULOG has a major duty to control price, foster the availability, security, and development of grain quality, rice, sugar, wheat, flour, soy, soybean meal as well as other food and feed materials either directly or indirectly to keep the price stability for producers and consumers and to fulfil the food and food quality needs based on the government’s general policy.

5.      P.D. No. 50/1995, BULOG obliges to control price and manage the availability of rice, sugar, wheat, flour, soy, and other food and feed materials either directly or indirectly to keep the price stability for producers and consumers and to fulfil the food and food quality needs based on the government’s general policy.

6.      P.D. No. 45/1997, the commodity managed by BULOG should be decreased; remaining rice and sugar.

7.      On January 21, 1998 was P.D. No. 19 issued in which its duty is restored as in P.D. No. 39/1968. Through this decree, along with the agreement with IMF, consequently, the scope of commodities handled by BULOG is re-narrowed in which the major duty of BULOG is only to handle rice commodity, while the others are about to be in markets mechanism. This decree is surely not in line with the principle of democratic economy.

8.      P.D. No. 29/2000, the government promotes BULOG to be an organization concerning to logistic services as well as its traditional duty. The major duty of BULOG is to carry out the government’s duties dealing with logistic management through managing and controlling the rice availability, distribution, and price (keeping the government purchasing price – said ‘HPP’) based on the authorized legislation.

9.      P.D. No. 29/2000, the change is getting stronger with the issuance of P.D. No. 166/2000, which is further changed to P.D. No. 103/2000. Then, it is changed to P.D. No. 03/2002 on January 7, 2002 in which the major duty of BULOG is still the same as in P.D. No. 29/2000 with a different nomenclature giving a transitional period up to 2003. Finally, with the issuance of the Government Regulation No. 7/2003, BULOG officially switched its status to the public-company BULOG.

In conclusion, based on the glance exposure about BULOG, its role and function should be strengthened in order to achieve the purpose of the nation’s welfare, not weakened even abolished instead as in the discourse to abolish the public-company BULOG issued by Ministry of Home Affairs (Sindo News, 19/04/2015). Indonesian people have the right to get food sovereignty, autonomy, security, and safety as what has been mandated in the 1945 Constitution and the Food Law. Further, it is expected, through the public-company BULOG, to be able to realize the aforementioned right under the principle of democratic economy without any intervention from foreign parties.