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West Sumatra Looks to Optimize Warehouse Receipts
WINDONESIA May 30, 2024
Presentation on the benefits of warehouse receipts. (ANTARA/Muhammad Zulfikar).
The West Sumatra Provincial Government plans to optimize the use of warehouse receipts for five warehouses spread across the province to meet the national food security program targets initiated by the central government.
“Both the President and the Agriculture Minister have stated that Indonesia aims to become the "world's food granary" by 2045. Therefore, improvements such as optimizing warehouse receipts for farmers is necessary,” West Sumatra Governor Mahyeldi in Padang City, West Sumatra on May 29, 2024.
The local government, in collaboration with Bank Indonesia, Commodity Futures Trading Regulatory Agency (Bappebti), the Financial Services Authority (OJK), and the Indonesian Chamber of Commerce and Industry (Kadin), is preparing a series of strategies to maximize the effectiveness of those five warehouse receipts.
Governor Mahyeldi believes that the collaboration between the government and these various stakeholders can enhance the efficiency of the five existing warehouse receipts, including by providing loan assistance from banks.
He acknowledged that the one warehouse each in West Pasaman Regency, Solok Regency, Tanah Datar Regency, and two in Lima Puluh Kota Regency which are referred to in the receipts have not been operating optimally.
The inefficiency is due to several factors, including the absence of warehouse receipt managers, their locations being far from agricultural production centers, the performance of existing managers, and other issues.
“The West Sumatra government is working with many parties to find solutions for these five warehouse receipts so that farmers can prosper,” he said.
Meanwhile, Kadin Bilateral Negotiations Permanent Committee Deputy Chairman Hendra Hartono said Kadin has continually urged the West Sumatra Provincial Government to strengthen the warehouse receipt system to boost exports towards various countries.
Hartono mentioned that by preparing and optimizing warehouse receipts, all goods or commodities that meet standards and pass the selection process will find it easier to enter the global market.
In his presentation, Hartono proposed a new concept for implementing warehouse receipts in Indonesia, particularly related to exporting several commodities, known as the trade-off barter.
Source: radarsumbar.com
