Indonesia’s Finance Ministry is formulating a contingency fund dedicated to the National Food Agency (Bapanas) to ensure the distribution of food in markets and execute policy interventions.
Isa Rachmatarwata, Director General of Budget, said on Tuesday that his agency is coordinating with Bapanas to explore the establishment of an emergency fund model. This initiative aims to ensure that Bapanas has a predefined budget for prompt interventions within its operational framework.
Isa emphasised the need for oversight to ensure the targeted use of the emergency fund, preventing any undue strain on the nation's finances.
He said the they aim to carry out this process effectively and efficiently by developing mechanisms that facilitate the provision and distribution of food while ensuring proper governance.
The ministry also collaborates with the Financial and Development Supervisory Agency (BPKP) as auditors or verifiers for distribution activities.
Meanwhile, Bapanas disclosed that meeting the quota for importing 3.6 million tonnes of rice this year would require a budget exceeding IDR30 trillion ($1.9 billion). Bapanas has been allocated a budget of IDR442 billion for this year