Third, production surpluses do not happen every month. In a year, the production surplus only lasts for 5-8 months. The remaining 4-7 months are classified as scarcity season. Meanwhile, the consumption stands steady at 2.5 to 2.6 million tons of rice per month. Production surplus also only happened in 13-14 provinces. Such characteristics require rice reserves in sufficient quantities across the regions. This can be used to intervene in the event of market failure or when disaster strikes. The level of participation in rice consumption is almost perfect: 99.63 percent.
Fourth, centralized rice production. Since rice self-sufficiency was pledged up to now the production is still centered in Java, with the highest production rate in Central Java, East Java and West Java. Together, they account for 52 percent. Six provinces in Java (Central Java, East Java, West Java, Banten, Yogyakarta and Jakarta) accounted for 54 to 56 percent of national production in the 2018-22 period. This has not changed much from 20-30 years ago. In the 1990- 2001 period, 56 percent of rice production was contributed by Java.
This situation calls for, first, sufficient rice reserves. These reserves are gathered during the main harvest to be distributed to markets during scarcity time. So far, the volume of government rice reserves (CBP) has yet been accurately determined. With a large population, the number of reserves must be ascertained. Second, there is a need for a parastatal institution that manages the reserves, has reliable warehouses and distribution infrastructure to ensure that supplies are available evenly and reliably across the regions. With a network of 1,600 warehouses with a capacity of 4 million tons, Bulog’s capacity as CBP manager is unrivaled by other corporations. However, Bulog needs to be empowered through capacity building.