Not yet running optimally, the Warehouse Receipt System in the country has still not attracted relevant industry players to develop it. To address this issue, Perum Jamkrindo conducted a study abroad, in Bulgaria.
In the future, Warehouse Receipt System players in Indonesia must strive even harder. Despite being around for years, this industry has remained unheard of and has not attracted related industries.
Unlike Indonesia, Bulgaria has successfully implemented the Warehouse Receipt System. There, all farmers are required to store their harvests in warehouses, ensuring national food availability and stable commodity prices. This has proven effective, as the program, which originated as a government initiative in 1997, is now self-sustaining without the need for further subsidies.
Bulgaria’s success in implementing the Warehouse Receipt System has attracted the interest of Perusahaan Umum Jaminan Kredit Indonesia (Perum Jamkrindo) to study it further. Field visits and direct discussions with industry players in Bulgaria are expected to provide Perum Jamkrindo with sufficient knowledge to develop the Warehouse Receipt System domestically.
This visit aims to gain a comprehensive understanding of the implementation of the Warehouse Receipt System, which is equipped with an indemnity fund. Additionally, it serves as a reference for preparing various aspects related to the system’s execution.
“Perum Jamkrindo needs to conduct field visits to directly meet and discuss with various stakeholders in countries that have successfully implemented the Warehouse Receipt System with Indemnity Fund protection,” said Diding S Anwar, President Director of Perum Jamkrindo.
During Perum Jamkrindo’s visit, it was found that the implementation of the warehouse system in Indonesia and Bulgaria has different objectives. However, the processes involved are similar, making its adoption feasible.
Bulgaria initially implemented the Warehouse Receipt System to address a food crisis at that time. Moreover, the Bulgarian government was able to increase and regulate food production through this system. As a result, farmers’ interest in cultivating food commodities according to quality and quantity standards also increased.
The Warehouse Receipt System also allows farmers to directly connect with banks to secure financing, whether for their living expenses when prices are low or for trade financing (working capital).
From the warehouses visited—Atriko Warehouse Operator and Agromill Warehouse—Perum Jamkrindo observed that these facilities function not only as storage locations but also as places where farmers can obtain certainty in securing loans from banks.
The collaboration model between farmers, warehouses, and banks, supported by guarantee companies, is considered more efficient and beneficial. Warehouse receipts issued by storage facilities can be used as collateral for bank loans, which can be disbursed promptly. Here, guarantee companies play a crucial role in ensuring warehouse management and securing bank credit distribution.
From a banking perspective, the implementation of the Warehouse Receipt System greatly benefits farmers. Banks can easily provide financing, while the presence of guarantee funds increases their confidence in participating in this system.
Different places, different customs. The implementation of the Warehouse Receipt System in Bulgaria will not be fully applied in Indonesia. Different objectives also influence the system’s implementation. In Indonesia, the primary goal is to uplift farmers’ livelihoods. Farmers have long been in the weakest bargaining position, with their harvest prices frequently manipulated, especially by middlemen.
Diding stated that the Warehouse Receipt System is an instrument that can be utilized by farmers, farmer groups, farmer cooperatives, and business actors (traders, processors, manufacturers) as a tool for deferred sales and trade financing, as it provides credit access with stored commodities as collateral.
“With the availability of a guarantee mechanism in the Warehouse Receipt System, warehouse operators can fulfill their obligations to return stored goods if any negligence leads to warehouse management failures. This is where Perum Jamkrindo’s role is essential—to guarantee warehouse management,” he explained.
Therefore, implementing guarantees in the Warehouse Receipt System must be supported by regulations and provisions that do not disadvantage any party. The regulatory body, in this case, Bappebti, plays a crucial role in determining whether certain conditions qualify as a breach covered by the guarantee fund. These decisions must also be made swiftly.
Although the preparatory steps for managing the Warehouse Receipt System have been well-structured, its implementation still awaits government intervention. Diding reiterated that his institution will only take on the role of the Warehouse Receipt System Guarantee Implementing Agency once the State Capital Injection (PMN) funds are disbursed.
“The government has allocated Rp705 billion in PMN and Rp82 billion in operational funds for Perum Jamkrindo to implement the Warehouse Receipt System guarantee. Currently, the PMN issue is in the legislative process at the DPR,” he concluded.