CIANJUR – Perusahaan Umum (Perum) Jamkrindo has been appointed as the Implementing Institution for the Warehouse Receipt System Guarantee (LPP SRG) in accordance with Government Regulation No. 1 of 2016. This means that the state-owned credit guarantee company is ready to play a role in maintaining commodity price stability.
"Jamkrindo's current priority is to ensure the SRG guarantee operates as soon as possible after receiving state capital injection (PMN)," said Perum Jamkrindo President Director, Diding S. Anwar, in a written statement.
As an LPP-SRG, Jamkrindo is responsible for protecting the rights of Warehouse Receipt Holders and/or Guarantee Right Recipients in case of failure, inability, and/or bankruptcy of warehouse operators in fulfilling their obligations. It also helps maintain the stability and integrity of the Warehouse Receipt System within its authority.
Alongside this, the government launched a program integrating the SRG and the Online Commodity Auction Market on December 5, 2016. The launch was conducted by the Coordinating Minister for Economic Affairs and attended by several economic ministers, governors, regents/mayors from various regions, farmers, and farmer groups.
According to Diding, the integration of the SRG and the Commodity Auction Market is a solution to their previously independent and partial operations. Therefore, synergy between these two instruments is needed at the policy level, in regulations, and in an integrated information technology system.
"We hope the integration of the Warehouse Receipt System and the Commodity Auction Market will empower farmers while also creating trade efficiency," Diding stated.
Currently, the Auction Market, overseen by the Commodity Futures Trading Regulatory Agency (Bappebti), is being implemented in 15 regions with 17 organizers. However, commodity types and quality vary widely, and both sellers and buyers remain limited. Meanwhile, the Warehouse Receipt System is operating in 98 warehouses across 75 districts in 21 provinces but is still primarily used as a deferred sale and financing instrument without market connectivity.
Commodities that can be stored in SRG warehouses include rattan, unhusked rice, gambier, rice, tea, corn, and rubber, as well as seaweed, coffee, cocoa, tin, pepper, copra, and salt.
To facilitate and increase SRG utilization by farmers and business actors, the government, through the Ministry of Trade, has developed the SRG Mobile application. This mobile-accessible application allows goods owners and warehouse operators to store goods, obtain price references, and plan marketing through the Commodity Auction Market.
Additionally, an Integrated Commodity Auction Market System has been developed to optimize internet technology usage. This system expands market reach, overcomes geographical and time constraints, and increases participation from both sellers and buyers. The digital platform aims to improve efficiency, marketing, and access for farmers.
The beneficiaries of the SRG and Online Commodity Auction Market integration include: A comprehensive solution for market access and financing with 3M (Easy, Affordable, Beneficial), Empowerment of farmers and small-medium enterprises (SMEs), Trade efficiency and increased competitiveness, Improved national commodity competitiveness, New business opportunities for warehouse service providers, grading services, and financial institutions/banking sectors.