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Rinna Syawal, SP, MP
Director of Food Consumption Diversification,
National Food Agency (Bapanas)

And. Alimus agreed
Chairman of the Association of Rice Mills and Entrepreneurs
Indonesian Rice (PERPADI)

According to BPS Susenas data for 2018-2022, the highest food consumption pattern among the Indonesian population is rice consumption. The consumption of fruits and vegetables and fiber sources is still low among the population. With such a diet, it is generally illustrated that it will lead to micronutrient deficiency problems. Therefore, special efforts need to be made to overcome the micronutrient deficiencies experienced by the community. In a strategic effort to address micronutrient deficiencies, rice has the potential to become a commodity for adding nutrients to foods. Rice is the leading staple food for the Indonesian population, with consumption rates reaching >90%.

The National Food Agency (Bapanas) always makes a production balance to see availability so that if there is sufficient food availability, it can be considered as part of a fortification program. Based on the survey results, the rice stock held by the National Food Agency and BPS is 4,064,238 tonnes of rice. The government also has food reserves managed by Bulog, including rice, which is 608,307 tonnes, and food reserves in other commodities. Rice is a commodity that has settled from about one year ago to today, so it can be used as a "ride vehicle" for programs to use rice reserves, which has become one of the food assistance programs for low-income people.

Fortified rice is rice that has been enriched or supplemented with one or more nutrients that are not naturally present or are present at low levels, either through agronomic intervention or breeding or through the addition of nutrients. The National Food Agency's role in supporting the rice fortification program is as follows:

  1. Establishment of standards and distribution permits for fortified rice
  2. Quality control of fortified rice
  3. Integrating fortified rice into food aid packages for low-income and disaster-affected communities
  4. Use of government food reserves, especially fortified rice reserves
  5. Socialization and education about fortified rice
  6. Recommend implementation of fortification in the food diversification presidential regulation.

The policy for designating fortified rice as special rice is contained in Perbadan No. 2 of 2023 on Quality Requirements and Rice Labelling. Fortified rice is included in special rice as defined in Article 3(1)(b) of Perbadan No. 2 of 2023. Special rice does not have to be of a premium quality. Bapanas is responsible for monitoring the quality of fortified rice and its standardization. One of the deputies in Bapanas is tasked with dealing with food and nutrition insecurity, which includes food aid. If food aid can be designed using the commodity rice, this could be an opportunity to use fortified rice.

In 2023, the distribution of Government Food Reserves (CPP) for Food Assistance for the commodity of rice will be given to 21.353 million beneficiary families (KPM) for 3 (three) months. Rice Food Assistance will be distributed 10 kg/KPM through Perum BULOG with PT. Pos Indonesia as the distributor. The total KPM per Kanwil is 21,353,000. The highest distribution of KPM per regional office is found in West Java, East Java, and Central Java. The estimated amount of rice needed is 639,000,000 kg at a preliminary price of IDR 10,859 based on the Minister of Finance's letter number s-1092/MK.02/2021 dated 30 November 2021 concerning the determination of the purchase price of government rice reserves for 2022. The public consumes local food according to local potential and wisdom. The strategy and action plan in the matrix annexed to the Presidential Decree on the mainstreaming of local food production and consumption is implemented by optimizing budget allocations for accelerating the development of diversification of local food commodities and the development of biofortification and fortification based on local food.

The following issues need to be further investigated:

  1. Siapa yang akan memproduksi beras fortifikasi
    1. Bantuan pemerintah atau
    2. Komersil
  2. Jika bantuan pemerintah diperlukan:
    1. Penetapan pelaku fortifikasi (penugasan kepada BUMN/BULOG)
    2. Kajian penambahan biaya dalam memproduksi beras fortifikasi
    3. Dukungan alokasi anggaran untuk fortifikasi beras
    4. Pemetaan produsen kernel dalam negeri
    5. Pemetaan potensi penggilingan yang aktif sebagai blending unit
  3. Jika dilakukan secara komersil, peran pemerintah adalah:
    1. Menetapkan standar fortifikasi
    2. Penerbitan izin edar
    3. Pengawasan
  4. Need to socialize and educate consumers about fortified rice (benefits and home processing)

Sustainable rice that helps the survival of farmers, rice millers, and underprivileged consumers requires 'Policy implementation that is efficient, competitive, independent, sovereign and prosperous". Challenges and opportunities for the rice fortification program include:

  1. The traceability of fortified rice involves many parties related to the rice supply chain system that is considered too long;
  2. The production of fortified rice requires special handling and equipment, so investment is required;
  3. Rice mills in Indonesia are extensive, and their production capacity has exceeded the ability to supply grain;
  4. Rice mills are scattered in rice production centers and are primarily small rice mills scattered in rural areas;
  5. Small Rice Millers generally have weak management and inadequate production equipment technology, resulting in low competitiveness and the demise of many;
  6. Small rice mills need to be revitalized to accelerate the provision of fortified rice.

Rice is produced and processed by hundreds of thousands of rice mills, about 95% of which are small-scale. Field observations show that the rice food supply chain from farmers to consumer households is long. For example, farmers use the labor of rice cutters to sell to grain collectors, who are also tiered to be taken to rice mills or sorted and sold to large mills, which are then marketed to distributors before being purchased by consumers. Each point of the supply chain is a source of income and is often inefficient, resulting in a relatively high price difference from the producer to consumer level of around 21.5% (BPS, 2020).

In addition, the installed capacity of rice mills currently exceeds grain production. The number is currently more than 161 thousand, and as many as 95% are small rice mills (PPK) (<1500 kg/hour) with 60% overcapacity. Rice mills currently produce low yields of around 62.3% (should be 67%), and grain movement between regions is inefficient. Medium and large-scale rice mills with strong capital produce premium and medium rice with high yields that are marketed with modern market systems and between regions/islands and easily obtain materials and markets.

Meanwhile, small rice mills that are weak in capital and management can only produce medium, medium (-)/glosor rice with low yields marketed locally and with a limited supply of materials and markets.

The production of fortified rice requires special handling and equipment, which requires investment. Small millers have weak management and inadequate production equipment technology, resulting in low competitiveness. Therefore, small rice mills need to be revitalized by providing low-interest credit to accelerate the provision of fortified rice. The traceability of fortified rice is an essential part of the program's successful implementation by the set targets. Small rice mills in rural areas can be one of the main actors in providing and distributing fortified rice, especially for the target group.


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