The Perum Bulog management in North Sumatra announced the absorption of 1.989 tons of corn from the beginning of the year until April 4, 2026. This operation was carried out in various regions of North Sumatra, showcasing the government's commitment to boosting agricultural crop production.
Budi Kahianto, the head of Perum Bulog in North Sumatra, stated that the absorption took place in areas such as Deli Serdang, Padang Lawas, Dairi, and Batu Bara. He noted that there is potential for further absorption in other regions like Karo, Dairi, and Pakpak Bharat.
Details of the Operation
Despite achieving this amount of absorption, Budi acknowledged that the operation was not ideal due to high corn prices in the market, with the price per kilogram reaching approximately 7,000 rupiah, while the purchase price by Perum Bulog is 6,400 rupiah per kilogram.
Through these operations, Perum Bulog managed to store around 4,000 tons of corn in its warehouses, which is sufficient to meet the needs of the livestock sector in the region.
Background & Context
Corn is considered a staple crop in Indonesia, playing a crucial role in securing animal feed and meeting market demands. The Indonesian government aims to achieve self-sufficiency in corn, which requires enhancing local production and reducing reliance on imports.
In recent years, Indonesia has witnessed a significant increase in corn production, contributing to a decrease in the proportion of imported feed. The Indonesian Minister of Agriculture indicated that the country has made substantial progress in this area, reflecting the government's efforts to support farmers.
Impact & Consequences
These steps are crucial to ensuring the stability of corn prices in the market, as rising prices can negatively impact the livestock sector. If prices continue to rise, farmers may be forced to reduce their production, potentially leading to supply shortages.
Moreover, enhancing corn absorption can contribute to improving food security in the region, as corn is a primary source of feed. Therefore, improving corn absorption can help stabilize the market and increase production.
Regional Significance
Indonesia is one of the largest corn producers in the world, and its agricultural policies can influence global prices. In the Arab region, many countries rely on corn imports to meet their food needs, so any changes in Indonesian production may affect Arab markets.
Additionally, boosting local production in Indonesia can serve as a model for Arab countries striving for self-sufficiency in agricultural crops.