Ministry of Social Affairs and Bulog Cooperate in Distributing BPNT Rice

JAKARTA (July 4, 2019) - Ministry of Social Affairs, Agus Gumiwang Kartasasmita, ensured that his staff were ready to cooperate with the State Logistics Agency (Bulog) in maintaining rice supply in the Non-Cash Food Assistance (BPNT) program.

"We warmly welcome Bulog. I am aware that this policy will certainly attract public criticism, especially market players and the beneficiaries who have been receiving good quality rice," said the Minister in the opening of the Coordination Meeting of Food Assistance Distribution “6T” of Poverty Reduction Program for People’s Welfare Improvement, in Jakarta, Thursday (04/07/2019)

However, the Minister believed that Bulog committed to distribute quality rice to E-Warong so that the public trust towards BPNT was maintained. It was also deemed important to reach Our Food House (RPK) especially in locations where there were no e-Warong. RPK is a partner of  Bulog and a network of staple food sales outlets.

In this meeting, Bulog President Director, Budi Waseso and his staff were present. There were also Echelon I and Echelon II officials, a number of structural officials as well as staff of Ministry of Social Affairs. The participants consisted of various parties including the Coordinating Ministry for Human Development and Culture, National Team for the Acceleration of Poverty Reduction (TNP2K), National Development Planning Agency (Bappenas), The Association of State-Owned Banks (Himbara), and heads of provincial social services agency throughout Indonesia.

Furthermore, the Minister said, the government had always realized the importance protecting the poor in their basic food needs. "Various safeguards can be seen through various programs including Subsidized Rice Program (Rastra), and BPNT," said the Minister.

The transformation of one program to another, said the Minister, aimed to build a more effective protection system in reducing poverty. "On the other hand, food assistance, especially rice, becomes a concern because rice provides the largest contribution to the Poverty Line, namely 19.54 in urban areas and 25.51 in rural areas," said Minister of Social Affairs.

In the past, the community was also faced with various problems in food assistance program, especially in the rice quality. Citing from the World Bank survey (2012 & 2014) and The Corruption Eradication Commission (2014), said the Minister, there were various problems in the implementation of the program, including: inaccurate targets, inaccurate received rice quantities and poor quality rice.

The community were satisfied with BPNT services. MicroSave survey (January 2017), Social Minister emphasized, showing community satisfaction with BPNT.

"Regarding to BPNT, the Beneficiary Family (KPM) satisfaction level reaches 96 percent. And E-Warong's satisfaction level is 89 percent. They said BPNT was easy and comfortable, "said the Minister.

Other positive results formulated by MicroSave are BPNT provided premium quality food and provided easy access to e-Warong; BPNT provided business opportunities for micro entrepreneurs, especially women (68 percent).

BPNT helped in increasing financial inclusion among the poor. As many as 87 percent of KPM admitted that it was the first time having a bank account with a Prosperous Family Card (KKS).

"BPNT is an open program in which all groups can participate. We believe that all efforts in reducing poverty will be more accelerative by giving a wide opportunity to public participation, "said the Minister.

The Role of Bulog

In line with Budi Waseso’s statement, the Minister agreed that in fulfilling food assistance, especially rice for BPNT, it should be carried out by avoiding monopolies. "Because the banks distribute assistance directly to KPM accounts," said the Minister.

In this occasion, the Minister reopened to more roles in the distribution of BPNT in 514 regencies/cities in 2019. "Through cooperation with existing e-warong (e-warong Kube, bank agents, and RPK as Bulog partners) as suppliers of food, both rice and eggs, especially in non-rice-producing areas," said Social Minister.

This helped accelerating the distribution of rice stocks owned by Bulog. "Through its marketing management strategy, I am sure that Bulog can play a better role in distributing BPNT in accordance with the 6T principle," said the Minister.

Meanwhile, the Director General of Poverty Reduction Management Andi ZA Dulung said, till 4 January 2019, 288 thousand tons of rice (97.7 percent) had been distributed to 2.9 million KPM in regencies/cities receiving Rastra.

"11.9 million KPM have received BPNT and 89.9% of them have used it," said Andi.

However, some regions found obstacles in the distribution of Rastra. Namely Kubu Raya (West Kalimantan) lost its data of village administrative areas resulting in anomalous data distribution in other villages. Kutai Barat and Mahakam Ulu (East Kalimantan), Southwest Sumba, Central Sumba, Manggarai and East Manggarai (NTT) faced bad weather and limited fleet.

"Bintang Mountains, Jayawijaya, Central Mamberamo, Tolikara, Puncak Jaya, Yalimo, Nduga, Lani Jaya, and Puncak (Papua) constrained by geographical access and transportation," said Andi.

"These hurdles are concerning, because it involves the rights of the poor and vulnerable families as Indonesian citizens who become the responsibility of the government," Andi said.

Head of Public Relations Bureau Ministry of Social Affairs RI

Sonny W. Manalu