Presidential Regulation Number 14 of 2026 Accelerating the Provision of Postharvest Infrastructure and Expanding Partnerships between State-Owned Enterprises and the Private Sector

Introduction

On March 11, 2026, the Government issued Presidential Regulation Number 14 of 2026 on the Acceleration of the Implementation of Postharvest Infrastructure Provision to Support National Food Security ("PR 14/2026"). PR 14/2026 regulates the appointment of the main implementer for the provision of postharvest facilities and infrastructure across Indonesia.

PR 14/2026 aims to support food self-sufficiency, reduce reliance on commercial warehouse leasing, and maintain the stability of the national food supply. Based on the considerations section, the Government also encourages the acceleration of Postharvest Infrastructure (Infrastruktur Pascapanen, "IPP") provision, as well as the facilitation of business licensing and land provision to support infrastructure operations during the 2026 harvest season.

Key Provisions

Scope of Postharvest Infrastructure

Postharvest infrastructure encompasses the provision of facilities and infrastructure for food procurement, management, distribution, and service activities, supported by information technology systems as stipulated in Article 3.

Management Schemes and Third-Party Involvement

Article 4 and Article 5 regulate the classification of land status and infrastructure management methods. These provisions also allow infrastructure managed by Regional Governments to be operated using the system of the Public Corporation of the State Logistics Agency (Perusahaan Umum Badan Urusan Logistik, "Perum BULOG") based on cooperation agreements or other contracts. Furthermore, Article 6 regulates the formulation of mechanisms and technical procedures by Perum BULOG for the management of such assets.

Procurement Schemes and Fair Value Assessment

Article 7 stipulates that the provision of facilities includes the construction of new infrastructure, renovation, addition of facilities, and the purchase of existing infrastructure. In the event of purchasing buildings or facilities, Article 12 requires payment based on a fair value assessment determined by a Public Appraisal Services Office.

Procurement Guidelines and Project Implementation Stages

Perum BULOG formulates goods and services procurement guidelines that serve as a reference for participating businesses, as stipulated in Article 13. In addition, the project implementation stages are set forth in Article 7 paragraph (2) through Article 9 as follows:

1. Planning;

2. Financial feasibility study;

3. Consultant selection;

4. Implementer selection;

5. Implementation of IPP provision;

6. Supervision; and

7. Reporting.

Direct Appointment and Third-Party Involvement in Project Implementation

The selection of construction implementers and consultant service providers is regulated in Article 10 and Article 11 through a direct appointment mechanism that prioritizes State-Owned Enterprises (SOEs) and SOE Subsidiaries. In its implementation, these entities may collaborate with other parties through a Joint Operation scheme while continuing to prioritize local service providers as stipulated in Article 10 paragraph (4) and Article 11 paragraph (3). Furthermore, in the event the main implementer is unavailable or unappointed, direct appointment may be granted to service providers with a strong performance track record and prior cooperation with Perum BULOG as stipulated in Article 10 paragraph (3) and Article 11 paragraph (2).

Priority of Local Content Usage in Project Supply Chains

Material suppliers and service providers shall ensure that the products used comply with domestic component requirements. The implementation of infrastructure provision prioritizes the use of domestic goods and services (Local Content), as stipulated in Article 14. The use of domestic components is carried out while continuing to observe the availability level, the best business interests of Perum BULOG, and/or technical and financial feasibility.

Acceleration of Risk-Based Business Licensing

Ministries and Regional Governments shall accelerate the licensing process for project implementation as stipulated in Article 15. The processing of project documents utilizes a risk-based business licensing system with priority on basic licensing as set forth in Article 16, which includes:

1. Conformity of Space Utilization Activities;

2. Environmental Management Efforts and Environmental Monitoring Efforts;

3. Environmental Impact Assessment;

4. Building Approval;

5. Certificate of Function-Worthiness; and

6. Certificate of Operation-Worthiness.

Additionally, the Minister of Investment facilitates the processing of business licensing, and the Regional Governments carry out the relocation of regency or city roads affected by the project, as stipulated in Article 17.

Land Provision and Utilization of Land Management Rights

The Government prioritizes land provision through the utilization of state or regional property as well as infrastructure provision cooperation schemes as stipulated in Article 18 paragraph (2). In addition, the Land Bank Authority (Badan Bank Tanah) provides land with management rights through a utilization cooperation scheme as stipulated in Article 18 paragraph (4). Relevant ministries/agencies and Regional Governments shall resolve implementation bottlenecks in the field in accordance with their respective authorities as stipulated in Article 19.

Project Funding Schemes and Bridging Funds

Project funding is sourced from the State Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Negara, “APBN”) through the State Capital Injection (Penyertaan Modal Negara) scheme as stipulated in Article 20 paragraph (1). Perum BULOG may utilize non-permanent Government investment funds for the procurement of the 2025 Government Corn Reserve (Cadangan Jagung Pemerintah) up to a maximum of IDR 5,000,000,000,000.00 (five trillion rupiah) as bridging funds prior to the disbursement of the State Capital Injection as stipulated in Article 20 paragraph (2). Budget submission is carried out based on a study jointly formulated by relevant ministries and agencies as stipulated in Article 21.

Cost Calculation and Implementation Supervision

Infrastructure utilization costs are calculated as a component forming the purchase price of the Government Food Reserve (Cadangan Pangan Pemerintah), while asset depreciation is calculated as a component of the implementation of the Government Food Reserve, as stipulated in Article 22 paragraph (2) and paragraph (3). Assistance and supervision of activity implementation are conducted by relevant ministries/agencies in accordance with their authorities as stipulated in Article 23, which encompasses coordination, monitoring, and evaluation of the implementation of postharvest infrastructure provision.

Closing

PR 14/2026 regulates the acceleration of postharvest infrastructure provision through the appointment of Perum BULOG as the main implementer with the involvement of SOEs, SOE Subsidiaries, and other parties in project implementation. These provisions encompass infrastructure provision through the construction of new infrastructure, renovation, addition of facilities, and the purchase of existing infrastructure with payments based on fair value, as well as project implementation through direct appointment that may involve cooperation with other parties. Furthermore, PR 14/2026 regulates the use of domestic components, acceleration of risk-based business licensing, land provision through the utilization of state or regional property and Land Bank Authority support, as well as project funding through State Capital Injections and the use of bridging funds by Perum BULOG. In its implementation, businesses may be involved through asset procurement, land utilization cooperation, as well as Joint Operations while continuing to observe the priority given to SOEs and the use of local service providers. Businesses also need to fulfill technical requirements, including compliance with Local Content, maintaining a strong performance track record, and adhering to licensing, spatial planning, and environmental requirements.