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. 

Published on Dinamika Magazine in September 2016

THE LETHARGY OF FOOD PRICE

Ikomatussuniah, SH., MH

A lecturer at Law Faculty of Sultan Ageng Tirtayasa University

Jl. Raya Jakarta Km. 04 Pakupatan-Serang

ikomatussuniah@yahoo.co.id

iko@untirta.ac.id

ikomatussuniah-design.blogspot.co.id

INTRODUCTION

       Food sovereignty becomes the main issue to achieve welfare. A welfare in line with the aim of state welfare in Indonesia has been conceived in the fourth alenia of the opening Constitution of Republic of Indonesia, 1945. According to Food Law, food sovereignty is for the country and its people in which the country autonomously determines certain food policies insuring the people's food rights and giving them rights to determine the food system appropriate with the potential of local resources. In terms of food production, the country should be able to produce various domestic food that can guarantee the fulfilment of food needs adequately and up to personal level through exploiting the potentials of natural, human, social, economy, and local wisdom resources. The ideal circumstance envisioned in the law regulations at the implementation level is not realized well yet. Those aforementioned potentials have been untapped and not exploited yet maximally. When it goes to the problem of food need, the symptom of lethargy in fulfilling the need occurs. This circumstance leads to a stability fluctuation of food availability. Consequently, the price becomes inconsistent and uncertain.  It is of course about to make the people worried and feel uncomfortable.

THE LETHARGY OF FOOD PRICE

      Lethargy is a condition in which a loss of consciousness, concentration, and alertness occurs.  In this moment, the people might feel confused and be delirious, but still have ability to communicate. (Taken from: https://id.wikipedia.org/wiki/Letargi). Some researches on sociology concern on the symptoms of lethargy as forms of social behavior in a society in which the state of apathy spreads and many people become not productive, often desperate, and passionless (Robertus Robert, “Opini Kompas” 04/08/2016).

       Food price is one of the contributing criteria to the stabilized welfare in a society. If the price is stable, then the society welfare in terms of primary needs fulfilment can be well realized. In Indonesia, the food price tends to be fluctuative particularly on certain religious holidays, and this leads to the domestic economy.    (Taken from: http://bisniskeuangan.kompas.com/read/2016/06/06/155929026/indef.cuma.di.indonesia.harga.pangan.selalu.naik.jelang.hari.raya, 10/08/2016). The commodities getting into a fluctuation or exactly price increase comprise rice, chicken egg, red onion, red chilies, chicken and beef meat. This happens because of lots of demand from the consumers to fulfill the need on those days. In fact, the more the demand is, the higher the negotiation will be. In this circumstance, the traders see this as an opportunity to get as much income as possible.

        Kompas magazine 09/02/2016, reported that particularly for rice, the rice crisis in Indonesia occurred in the moment to May, 1998. The society worried that rice will be diminished from the market circulation. Some national and international politic observers suggested that rice crisis becomes one of the contributing factors to the fall of Soekarno and Soeharto's presidency. The society's worries on the great crisis in the beginning of February, 1998 made the Ministry of Coordination of Production and Distribution of Cabinet Construction VI, Hartato Sastrosoenarto, along with the Head of Logistic Affairs Body (so-called Kabulog) Beddu Amang was told to get to Soeharto's residence. To journalists, they both disputed that the rice stock runs out. Even if the stock is not adequate, it will be imported. This statement triggered a lethargy in fulfilling the food need. Kabulog also emphasized that private parties are allowed to import rice, sugar, soy, and flour freely. The Soeharto's government urged that rice stock keeps being the responsibility of Bulog.  After Soeharto’s falling, Indonesia got into the reform period. Then, Soeharto got an award from United Nations (UN) in the field of food self-efficiency in 1980s. 

       Recently, the government is suggesting rice self-efficiency as done in the Soeharto's era. However, importing activity had ever occurred. Import is the characteristic of lethargy on food price in which in fulfilling the food need, the constraint is still on the lack of readiness and preparation from the stakeholders, so that a breakthrough by doing import has been a public secret. This becomes ‘a project’ for some parties. Those two constraints on this recurrent problem every year lead to the loss of society welfare. Through import, productivity becomes weak, the markets are getting passionless, and such circumstances is the sign of despair to bring back rice self-efficiency. Recently, many of either natural or human resources are not productive in managing the food availability. The food lethargy is occurred because of inconsistent condition leading to the lack of readiness and preparedness upon the food price that can be obtained by the whole society.   This also leads to an increasing food price and food security will be questioned.

CONCLUSION

       The lethargy of food price has become a current issue, and is the excess of government policy from period to period. Food security is a huge responsibility for the government and the whole stakeholders. Good intention and real actions, functioning the policy in food control from centralized to regional levels, could create a stabilized food price, so that the envisioned welfare is possibly to be realized.  Clear regulations, real actions from the government, wise entrepreneurs, productive societies, and concrete law enforcement will altogether create a stabilized food price.