REPUBLIKA.CO.ID, JAKARTA -- Indonesia's Agriculture Ministry has urged the State Logistic Agency (Bulog) to immediately absorb the farmers' agriculture produce in a bid to maintain the selling price of commodities and improve the welfare of the farming community.
The ministry's Director General of Horticulture Spudnik Sujono stated here on Monday that the ministry had sent two letters to the agency, calling on Bulog to absorb the farmers' produce.
"My first letter was sent on Sept 7. The second letter was delivered yesterday. The point is that we want Bulog to absorb them immediately and buy the products from the production centers where the prices are lower," he remarked.
Sujono explained that Bulog being tasked with buying the farmers' produce is stipulated in Presidential Decree No. 48 of 2016 and Ministerial Decree No. 27 of 2017.
According to Sujono, the ministry has also encouraged Toko tani Indonesia to increase the sales of chili, cut short its supply chain, and promote the processing of chili into more valuable products.
The ministry has also promoted environment-friendly products through the reduced use of pesticides to bring down the production costs by 25 percent and encourage agricultural mechanization to decrease the labor cost and increase efficiency by 30 percent.
The Agriculture Ministry has worked on cooperating with the food industry, encouraging farmers to impose year-round cultivation management practices, and improving the farmers' capacity in chili processing.
"I also hope for support from the local government to ensure price stability for horticulture products," he added.
Finance Minister Sri Mulyani Indrawati had earlier claimed that deflation in August indicated that the prices of volatile foods had remained stable.
Mulyani said, the low inflation in August should be maintained until the end of the year by managing pressures from volatile food products and administered prices.
"Volatile food items are considered to be a source (of inflation), and after some efforts, their prices must be stabilized," she emphasized.
On the other hand, with the low inflation rate, the government should increase the people's purchasing power to boost economic growth, she said
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