Jakarta. Indonesia plans to spend Rp 5 trillion, approximately $299.5 million, in the state budget to build 100 new crop warehouses across the country, according to a senior minister.

Chief Food Affairs Minister Zulkifli Hassan said Tuesday that the yet-to-be-built new warehouses aim to address the logistical issues that may arise during a spike in agricultural production. When harvests soar, the state logistics firm Bulog often struggles to store the crops as it runs out of space in its existing warehouses.

“Bulog complained about having to rent [places], as well as the shortage of warehouses. That’s why we will soon build 100 Bulog warehouses at the country's rice and corn production centers,” Zulkifli said.

Bulog chief Ahmad Rizal Ramdhani told reporters that the program would focus on building new warehouses in Indonesia’s remote areas, such as the North Maluku regency of Morotai Island. The government will equip some warehouses with rice milling units and driers. 

State-owned construction firms are expected to take part in the project. Bulog hopes that the agency can start using this additional storage space when next year's harvest season comes.

“If the weather is good, we should be able to start the construction immediately. We want the project to be completed within a year,” Rizal said.

The Agricultural Ministry, the Home Affairs Ministry, the Finance Ministry, and the sovereign fund Danantara inked the joint decree on the warehouse construction.

Indonesia’s estimates showed that the nationwide rice production could reach 34.77 million tons in 2025, up by 13.54 percent compared to the previous year. 

Add as a preferred source on Google +