New law boosts Bali local products
HOTELS AND RESTAURANTS MUST SOURCE AT LEAST 30 PER CENT OF AGRICULTURAL, LIVESTOCK LOCALLY; ALSO BINDING ON SUPERMARKETS
IN A BID to support local farmers, the Bali provincial administration has issued a regulation that requires the use of local agricultural products in all of the island’s hotels, restaurants and catering services. The regulation also obligates supermarkets to provide more local products.
Aside from agricultural products, Bali Gubernatorial Regulation No. 99/2018, which was signed by Bali Governor Wayan Koster and enacted on December 28, 2018, stipulates for the compulsory use of local fishery and industry products.
“This is a New Year present from me to farmers, fishermen and local industries in Bali, to make them more happy and prosperous,” Wayan said during an event disseminating information on the new regulation at Pengotan village in Bangli regency, Bali, on Monday.
The regulation stipulates that at least 30 per cent of agricultural, livestock and fishery products used by hotels, restaurants and catering services must comprise local products. Hotels and restaurants must also use local products for at least 10 per cent of the volume needed for meat processing.
The regulation also stipulates that at least 60 per cent of agricultural and livestock products offered by supermarkets must come from local farmers. Supermarkets that offer fishery products must have at least 30 per cent of their products sourced from local fishermen.
The regulation also obliges hotels, restaurants, catering services and supermarkets to work in partnership with farmers, micro, small and medium enterprises, cooperatives and other related organisations.
The new regulation also states that the price of local agricultural products bought from farmers must be at least 20 per cent higher than the farmers’ production cost.
To support local farmers, the administration also obliges cash transactions only. For noncash transactions, the products must be bought through a provincial administration-owned company (Perusda), which will serve as an agent to connect farmers with hotels, restaurants, catering services, as well as supermarkets. All payments to Perusda should be completed within a month.
Wayan emphasised that the regulation was made to support sustainability in local product marketing. “We should all participate in taking real action to implement this regulation,” he added.
“To those who are doing their business in Bali, please take responsibility to develop Bali, not just develop [business] in Bali,” Wayan said.
Ida Bagus Purwa Sidemen, the executive director of Indonesian Hotels and Restaurants Association Bali chapter, warmly welcomed the new regulation, saying that most hotels and restaurants across Bali have already used local agricultural products.
“All hotels across Bali have for many years mostly used local agricultural products. More than 90 per cent of our needs are fulfilled by local products. We only import products that are not available here, such as kiwi fruit,” Purwa said.
He added that most hotels and restaurants, however, do not buy products directly from farmers and instead procure them through local suppliers who could offer instalment plans for payment.
“It’s not easy to buy products directly from farmers as they can’t provide some products at the same time. That’s why buying from suppliers is much easier,” he added.
Purwa assured that all hotels and restaurants across Bali will obey the regulation.
“I’m optimistic that hotels and restaurants would not face difficulties in obeying the regulation. We hope the government can implement it [well] to boost the sustainability of local agricultural products,” he said.