Utilisation of warehouse receipt system as a national food reserve instrument

Abstract

The warehouse receipt system (WRS) is an instrument for sales delay and financing systems, but it can be essential for developing and strengthening a national food reserve system. This study aims to analyse the performance of the WRS in Indonesia and the role of the WRS as a legal instrument in strengthening the national food reserve system. This study was conducted in 2022, using secondary data from various agencies. The analysis was carried out through a qualitative and descriptive approach. The research results show that WRS in Indonesia has developed relatively slowly. Its functions as delay sales and financing instruments have been negligible, including its limited number, volume, and values of commodities stored in the warehouses, the number of receipts issued, and the total value of financing it disbursed. Until now, the WRS in Indonesia has not been able to act as an instrument for building national food reserves. This study provides some policy recommendations, as follows: (i) the need to fulfil the adequacy conditions for the WRS and (ii) the need to revise Law No. 9/2011 of WRS by adding an article regarding the need for the WRS Council as an inter-Ministerial institution.