CHAPTER I

INTRODUCTION

1.1 Introduction

BULOG Public Company (Perum BULOG) is a State-Owned

Enterprise was established on January 21, 2003. Its establishment is based on

Government Regulation No. 7 of 2003 concerning the Establishment of a

Public Company (Perum) BULOG, as amended by Government Regulation

Number 61 of 2003 concerning Amendments to Government Regulation

Number 7 of 2003 and the Establishment of a Public Company (Perum)

BULOG. Government Regulation Number 7 of 2003 which is the Articles of

Association of Perum BULOG was changed back to PP Number 13 of 2016

concerning Perum BULOG.

The establishment of Perum BULOG cannot be separated from the

existence of the previous institution, namely the Logistics Affairs Agency

(BULOG). This is because Perum BULOG is the result of an institutional

transition or change in legal status from a Non-Departmental Government

Institution (LPND) to a State-Owned Enterprise (BUMN) in the form of a

Public Company (Perum). The change in the status of the BULOG legal

entity also had an impact on the vertical coordination flow which was

originally under and directly responsible to the President of the Republic of

Indonesia to become under the coordination of the Ministry of BUMN and

other Ministry Technical Institutions.

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 There are two functions of Perum BULOG as a public company which

is a pillar of food security in Indonesia, namely the Commercial Function and

the Public Service Function or what is known as the Public Service

Obligation (PSO). The function of Perum BULOG as a commercial function

is to sell basic commodities at our Food House (RPK) and sell rice to the

public. Meanwhile, BULOG distributes its rice stocks to the Rice Reserve

Government (CBP), Regional Movements and National Movements, and

distributes Prosperous Rice Social Assistance (Bansos Rastra) to fulfil the

Public Service function.

Perum BULOG does not only sell rice, but also sells many other

products such as oil, sugar, meat, flour, etc. The variety of products sold is

not an obstacle for Perum BULOG because the government and the public

trust their product. Even though the product is trusted, the product still has

weaknesses and there are still some product defects.

Based on the explanation above, the writer is interested in choosing

"Handling damaged products that are not suitable for resale at Perum

BULOG" as the title of this final report. The purpose of the author took this

title because they want to know the solutions taken by Perum BULOG for

damaged products.

1.2 Problem of the Paper

Based on the introduction, the problem of the paper was handling the

damaged products at Perum BULOG Bengkulu Regional.

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1.3 The Objective of the Paper

Based on the problem, the objective of the problem was to find out how

Perum BULOG Bengkulu Regional handling damaged products.

1.4 Significance of the Paper

Based on this report, the following are the benefits in various fields,

including:

1. For other writers. It can add the insight and knowledge as well as

information about handling products that have been damaged and are not

suitable for resale at Perum BULOG Bengkulu.

2. For readers. It can add insight and knowledge as a source of information

for readers regarding the handling of products that have been damaged and

are not suitable for resale at Perum BULOG Bengkulu.

3. For the Perum BULOG. It can be the sources of information to improve

the product and packaging quality.

4. For the university. It can be a treasure of reading and references on

handling products that have been damaged and are not suitable for resale

at Perum BULOG Bengkulu in the Bengkulu University library.

5. For the society. It can add the insight and knowledge about handling

products that are damaged and not suitable for resale at Perum BULOG

Bengkulu in the community.

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1.5 Definition of Key Terms

The key terms of the topic are:

1. Perum stands for Public Company which is a state company whose entire

capital is obtained from the state. Public Companies are part of the State-

Owned Enterprises (BUMN) which have two main objectives: serving the

community and seeking as much profit as possible. In addition, the entire

capital of Perum is owned by the state in the form of separate state assets

and not divided into shares.

2. Business or commerce is trading goods or services to make a profit. In

economics, a business company is an organization that sells goods or

services to consumers or other businesses to make a profit.

3. Products are goods or services that can be bought and sold. In marketing, a

product is anything that can be offered to a market and can satisfy a

demand or need. At the retail level, products are often referred to as

merchandise. In manufacturing, products are purchased as raw goods and

sold as finished goods.

4
 CHAPTER II

LITERATURE REVIEW

2.1 Defenition of Public Company (PERUM)

Based on Wikipedia, in Indonesia, a public company (abbreviated as

Perum; until 1969 it was called a state company, abbreviated as PN) is a type

of company-owned or under the ownership of a state-owned company. The

government of a country still owns the holding capital of a public company.

Public companies in a country are not formed only to earn profits in finance.

The state will obtain profits from public companies to be converted into state

revenue. Profits from public companies are then used for the state budget.

The nature of a public company is similar in part to the nature of a service

company and the nature of a limited liability company. This is because public

companies may pursue profits in addition to providing public services for the

benefit of society.

The goal is to serve the people and seek as much profit as possible. The

regulations governing Public Companies are regulated in Government

Regulation Number 13 of 1998 concerning Public Companies; PP Number 38

of 2018 concerning Public Companies; and Law Number 9 of 1969

concerning Stipulation of Government Regulation in Lieu of Law Number 1

of 1969 (State Gazette of 1969 Number 16; Supplement to State Gazette

Number 2890) concerning Forms of State Enterprises Become Laws. Public

companies have several characteristics, namely employees with the status of

state employees; capital originating from the government; management

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 consisting of ministers, directors and supervisory board; legal entity status;

Perum can make equity participation in other business entities; the minister

proposes its establishment to the president; Minister as the power of attorney

to represent the government as the owner of capital; The Board of Directors

serves as the leader of Perum; The supervisory board has the task of being a

supervisor and adviser to the directors; and an annual report is given to the

minister. Examples of Public Corporations include Perum Peruri, Perum

Pegadaian, Perum Damri, and Perum BULOG.

2.2 General Overview of Perum BULOG

BULOG is a state-owned public company engaged in food logistics.

The scope of the company's business includes logistics/warehousing,

surveying and eradicating pests, supplying plastic bags, transportation

business, trading in food commodities and retailing. As a company that

continues to carry out public duties from the government, BULOG continues

to carry out activities to maintain basic purchase prices for grain, stabilize

prices, especially basic costs, distribute rice for social assistance (Bansos) and

manage food stocks.

Before the government found Perum BULOG, there was BULOG

which was first formed based on Cabinet Presidium Decree Number

114/U/KEP/5/1967 dated 10 May 1967 under the name Non-Departmental

Government Agency (LPND) BULOG with the main objective of securing

food supply and stabilizing prices to uphold the existence of the new

Government.

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 Then, on January 20, 2003, LPND BULOG changed its status to a

Public Company (Perum) BULOG which is now called Perum BULOG based

on Government Regulation No. 7 of 2003 concerning the Establishment of a

Public Company BULOG and Government Regulation No. 61 of 2003

concerning Amendments to PP No. 7 In 2003 articles 70 and 71

Based on Government Regulation (PP) Number 16 of 2016

concerning Public Companies (PERUM) BULOG which was passed on May

17, 2016, the government continues to assign PERUM BULOG to carry out

duties and responsibilities in the context of national food security in the form

of:

a) safeguarding the price of staple food rice at the producer and consumer

levels;

b) management of the Government's staple food reserves of rice;

c) provision and distribution of staple food rice to certain groups of people;

and

d) implementation of rice imports following the provisions of laws and

regulations.

Currently, Perum BULOG has 1 head office in DKI Jakarta and 26

branch offices in various regions in Indonesia. The work system at Perum

BULOG is carried out according to field assignments where each field has an

important contribution to the work process at BULOG. If even one area is

chaotic, it will impact or destroy the company. So the work system in

BULOG works with each other between fields to achieve company goals.

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2.3 Vision and Mission of Perum BULOG

1. Vision

To become a superior and trusted food company in supporting the

realization of food sovereignty.

2. Mission

1. To run a staple food logistics business by prioritizing service to the

community;

2. To carry out superior management practices with the support of

professional human resources, cutting-edge technology and integrated

systems;

3. To apply the principles of good corporate governance and always make

continuous improvements;

4. To guarantee the availability, affordability and stability of staple food

commodities.

2.4 Organizational Structure and Location Perum BULOG

The organizational structure of the Bengkulu Regional Office consists of:

1. Regional Leader.

2. Manager of Supply Chain and Public Services.

3. Business Manager.

4. Administration and Finance Manager.

5. Branch Offices.

6. Warehouse.

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Following are the duties of the sections in Perum BULOG:

1. Regional Leader (Pinwil)

Regional Leader has the main task of implementing company

policies and carrying out procurement, operational and public service

activities, marketing, sales, and financial, HR and general management in

its working area.

In carrying out its main tasks as referred in the previous sentence,

Pinwil has the functions of planning, coordinating, controlling and

evaluating, including:

1. Implementation of procurement, operational and public service

activities.

2. Implementation of marketing and sales activities.

3. Implementation of administrative and financial management activities.

4. Implementation of development activities for Branch Offices, Sub-

Branch Offices and Warehouses.

2. Manager SCPP (Supply Chain and Public Service)

Manager SCPP has the main task of carrying out operational

planning activities, analysis of food data, commodity procurement,

agricultural cultivation program (on the farm), quality control and

maintenance, processing, quality management, warehousing management,

inventory and transportation, distribution of commodities according to

government assignments (rice distribution and other food for non-

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contractual government assignments with a budget sourced from APBN,

distribution of Government Food Reserves (CPP) and distribution of

Contractual Government Food Reserves (CPP) to regional governments).

The Supply Chain and Public Service Manager have the functions

of planning, coordinating, controlling and evaluating, including:

1. Implementation of operational planning activities and analyzing

food data.

2. Implementation of commodity procurement activities and

agricultural cultivation programs (on farm)

3. Implementation of quality control, quality maintenance and

processing activities, as well as quality management.

4. Implementation of warehousing, inventory, and transportation

management activities.

5. Implementation of commodity distribution activities according to

government assignments.

The SCPP Manager also oversees several Assistant Managers, including:

1. Assistant Manager of Operational Planning and Food Data.

2. Assistant Manager of Procurement and On Farm.

3. Assistant Manager of Quality Management.

4. Assistant Manager of Logistics Management.

5. Assistant Manager of Public Services.

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3. Business Manager

The Business Manager has the main task of carrying out marketing

activities, customer relationship management and product sales. In

carrying out these main tasks the Business Manager has the functions of

planning, coordinating, controlling and evaluating including:

1. Implementation of marketing activities and customer relationship

management.

2. Implementation of sales operational activities and sales

administration.

The Business Manager also oversees several Assistant Managers

consisting of:

1. Assistant Manager Marketing and Customer Relations.

2. Assistant Sales Manager.

4. Administration and Finance Manager

The Administration and Finance Manager has the main task of

carrying out HR management activities, legal, compliance, organizational

management, general affairs, procurement of goods and services,

secretarial affairs, public relations, finance, accounting, taxation, risk

management, and information technology management.

In carrying out its main duties, the Administration and Finance

Manager has the functions of planning, coordinating, controlling and

evaluating, among others:

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 1. Implementation of HR management, legal, compliance, and

organizational management activities.

2. Implementation of general activities, procurement of goods and

services, secretariat, and public relations.

3. Implementation of financial management activities.

4. Implementation of accounting and taxation management activities.

5. Implementation of risk management management activities.

6. Implementation of information technology service management

activities.

The Administration and Finance Manager is also in charge of

several Assistant Managers including:

1. HR and Legal Assistant Manager.

2. Assistant General Manager, Secretariat, and Public Relations.

3. Assistant Finance Manager.

4. Assistant Accounting Manager.

5. Functional IT Operations Support.

6. HR and Legal Assistant Manager

5. BRANCH OFFICES

Branch Offices, hereinafter referred to as Kancab, are

organizational units of Perum BULOG domiciled in the region and

directly responsible to Pinwil. Branch Offices are led by a Head,

hereinafter referred to as the Branch Manager.

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 Branch Offices have the main task of carrying out procurement,

operational and public service activities, marketing, sales, administrative

and financial management, and accounting in their working areas.

In carrying out its main duties, the Branch Office has the following

functions:

1. Implementation of procurement activities.

2. Implementation of operational activities and public services.

3. Implementation of marketing and sales activities.

4. Implementation of administrative and financial activities.

5. Implementation of accounting management activities.

Perum BULOG Bengkulu Regional Office has 1 (one) Branch,

namely the Rejang Lebong Branch Office which is located Jl. S. Sukowati

Rejang Lebong 391141.

6. WAREHOUSE

BULOG Perum Warehouse, hereinafter referred to as BULOG

Warehouse, is a place/building used to store and process Perum BULOG

commodity goods which are managed both administratively and

operationally by the Kanwil, Kancab or Kancapem.

The BULOG warehouse is led by a Head, hereinafter referred to as

Kagud. Kagud is under and responsible to Pinwil or Pincab or Pincapem

according to their position. The warehouse has the main task of carrying

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out the import, storage, processing, maintenance and release of Perum

BULOG commodity goods as well as administration within the

Warehouse environment.

For the Bengkulu area, BULOG has 4 warehouse units which

consist of 1 Type B warehouse unit (Bulog Sidomulyo Warehouse) under

the Bengkulu Regional Office and 3 Type C warehouse units (BULOG

Warehouse Taba Tembilang, Padang City, Durian Depun) under the

Regional Office and Branch Office (Durian Depun ).

The Sidomulyo Warehouse is a type B BULOG warehouse located

at Jl. H. Adam Malik KM 8.5 Kel. Sidomulyo, Kec. Gading Cempaka,

Bengkulu City. Type C BULOG Warehouse, namely the Durian Depun

BULOG Warehouse having its address at Jl. Two Routes KM 1 Durian

Depun, Kepahiang Regency, Taba Tembilang Bureau of Logistics

Warehouse with the address Jl. Ratu Samban, Taba Tembilang, Arga

Makmur District, North Bengkulu Regency. And the Padang City Bureau

of Logistics Warehouse is located at Jl. Turmeric Wood, City of Padang

Kayu Turmeric, Manna District, South Bengkulu Regency.

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 Figure 2.1 Organizational Structure Perum BULOG Bengkulu

2.5 Perum BULOG Products

Perum BULOG produces many kinds of products such as rice, oil,

sugar, flour, meat, etc. With its iconic brand name "KITA" for original

products from BULOG. The following are some of the products produced by

BULOG:

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1. Beras Kita, domestic premium quality rice with fluffier texture, low

amylose and high amylopectin levels and free from bleach, preservatives

and fragrances.

Figure 2.2 Beras Kita (Bulog.co.id)

2. Gula Manis Kita, granulated Sugar which is processed from 100%

selected original cane and processed with modern technology, produces

the highest quality sugar.

Figure 2.3 Gula Manis Kita (Bulog.co.id)

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3. Minyak Goreng Kita, quality cooking oil equipped with vitamin A and

vitamin E and low in saturated fat (bad fat). Our Cooking Oil can be used

up to 5 times.

Figure 2.4 Minyak Goreng Kita (Bulog.co.id)

4. Terigu Kita, wheat flour with moderate protein content, suitable for

making various kinds of cakes, snacks (cookies), fried foods and various

other snacks. Makes fried results more crispy, crunchy and oil does not

seep in excessively.

Figure 2.5 Terigu Kita (Bulog.co.id)

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5. Daging Kita, frozen buffalo meat which is processed by freezing at low

temperatures (blassing -40 degrees) makes this buffalo meat an alternative

to quality meat but has a more affordable price for the public. Buffalo

meat has higher iron and protein than beef and also contains lower

cholesterol and calories than beef.

Figure 2.6 Daging Kita (Bulog.co.id)

6. Fortivit, special rice with vitamins that are beneficial for increasing

stamina and body immunity, improving blood circulation, and maintaining

the function of the heart, nerves, brain, and bone health. The vitamins

contained in Fortivit rice are Vitamins A, B1, B3, B6, B9, B12, Zinc and

Iron (Fe).

Figure 2.7 Fortivit (Bulog.co.id)

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7. Besita, besita is rice made from processed cassava produced by Indonesian

farmers which is rich in fiber, gluten free and low in fat. Besita is here as a

food diversification to meet daily nutritional needs.

Figure 2.8 Besita (Bulog.co.id)

8. Nanas Madu, medium Slip rice produced by local farmers with fluffier

taste and friendly prices.

Figure 2.9 Nanas Madu (Bulog.co.id)

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9. Caping Emas, special Type of Rice with a packaging size of 1 Kg, there

are 3 variants (Red Rice, Black Rice, Milk Fragrant Mentik Rice)

Figure 2.10 Caping Emas (Bulog.co.id)

10. Lereng Ijen, taken from the name of Mount Ijen in Bondowoso which is

famous for its organic agricultural products. has received organic

certification both from within and outside the country. using peptides,

fertilizers and other organic materials, making preference as staple food

made from organic ingredients.

Figure 2.11 Lereng Ijen (Bulog.co.id)

11. Al Hambra, as the name of the palace complex as well as the magnificent

fortress of the Umayyads, located in Granada, Spain. The splendor and

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 grace of a golden and glorious age. Al Hambra seasoned basmati rice

which has a savory and delicious taste made from a blend of cinnamon,

curry, sweet and sour tomatoes and spices typical of Betawi, Arabia and

India. There are 5 variants of spices, namely Kebuli, Biryani, Kabsah,

Bukhori, and Mndi

Figure 2.12 Al Hambra (Bulog.co.id)

12. Eunak, rice that produces rice with a good taste, fluffier and savory

produced by West Java farmers. Packed with modern technology and

optimal drying, this rice is more durable and without a mixture of

preservatives.

Figure 2.13 Eunak (Bulog.co.id)

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2.6 The Definition of Commercial

Quoted from the Big Indonesian Dictionary (KBBI), commercial is

something related to commerce or trade. Another meaning of commercial is

something that is intended to be traded, has high commercial value,

sometimes sacrificing other values (social, cultural, and so on). While

reported by Investopedia, commercial is something related to trade and

business activities in general. At Perum BULOG, there is a commercial

sector, which greatly influences the development of BULOG. Many efforts

have been made by the commercial sector, including building partners or

what is often called Rumah Pangan Kita (RPK) which is directly fostered by

Perum BULOG. Apart from that, the commercial sector also carries out

canvasing, which means to attract potential customers and retain existing

customers, such as inviting market people to trade BULOG products directly

to consumers. Commercial itself is divided into several types, including:

Commercial Ads; Commercial Bartering; Commercial Software; Commercial

Broadcast; Commercial Paper and Commercial Banks.

2.7 The Definition of Rumah Pangan Kita

Rumah Pangan Kita is a small outlet owned by the community which

is the marketing network of Perum BULOG which is directly fostered by

Perum BULOG. The objectives of Rumah Pangan Kita include:

 Fulfillment of basic food needs;

 Generating small people's businesses; and

 Price stabilization activities through food products.

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 Guided by the three pillars of the BULOG version, namely

availability, where staple food is sufficient, both for consumers and national

reserves, accessibility is when the value of staple food can be reached by all

levels of society and all people can easily obtain staple food, and stable

prices, this is with stocks of staple foods and stable prices of staple foods.

To become part of Rumah Pangan Kita (RPK), the way to register is

to go directly to the Bengkulu regional office. Then meet the assistant or staff

in the marketing and customer relations department to provide the

requirements that have been brought. For the first purchase of at least 5

million. The conditions that need to be brought include:

 Business license from the municipality

 Photocopy of ID card

 Taxpayer identification number (NPWP)

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 CHAPTER III

DISCUSSION

3.1 Causes of Damage Products at Perum BULOG

The data collection technique is based on the observation method from

the 1 month internship as well as the interview and documentation methods.

Interviews were conducted with business managers and staff. Of the many

products that BULOG produces, of course there are some items that are

damaged or not for sale. Even products that are produced cannot be damaged

by themselves without any cause.

Based on the results of interviews conducted by the writer with one of

the assistant managers, incoming products are usually transported within a

period of approximately 3 months depending on available stock. The

transportation process is also uncertain depending on the capacity of the

carrier and the amount of product available. The mother ship used is a

subsidiary of BULOG, namely JPLogistic. When the product arrives at the

warehouse, the product is immediately inspected by the head of the

warehouse directly whether there are defective products or not. Products

transported to the warehouse are rarely damaged. Usually the damage occurs

when it is from the warehouse to the consumer. The main cause of product

damage is how it was stored.

The product will not be damaged if the storage method is done better.

But it's not just the method that's a problem but the storage time. At Perum

BULOG, damaged products usually occur due to too long storage in the

24
warehouse so that the products experience packaging damage or become dirty

and dusty. Even so, the feasibility of this product can still be traded. The

reason is because the damage that occurs to the product is only damaged on

the packaging and does not affect the product inside. Meanwhile, consumers

have different handling of the product to be consumed. They don't have to

worry about the packaging but the contents of the product. It is clear to

consumers that they will consume existing products. However, it would be a

shame if the product was stored using standard storage methods. This means

that the product is adapted to its place and not stored haphazardly. One

example is frozen meat products that are not stored in the freezer, the meat

will rot.

The next problem is if there is a leaky packaging on the product.

According to an interview I conducted with the business manager, the leaky

packaging was handled by Perum BULOG. After interviewing the business

manager by asking about the expiration date of BULOG's products, it turned

out that BULOG's products did not have an expiration date. Even though the

product does not have an expiration date, BULOG products can still be

damaged. The cause is the same as previously described, depending on how

consumers store it. If consumers do not pay attention to how to store it, the

product will be damaged. Which if careless will cause such as the quality of

rice to decrease because there are already fleas, rotting meat because it is not

placed in a frozen place and rice products that have a fortivit-like taste that

has changed to a different taste than before.

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3.2 The Handling of Damage Products by Perum BULOG

Product handling by Perum BULOG is very good, especially for its

products. Before being traded, of course BULOG pays attention to the quality

of its products first. However, there are still some defective and doubtful

products for sale. From the results of interviews conducted with one of the

sales staff, it is known that Perum BULOG always pays attention to its

products from the trip to the warehouse. If the product being sold has been

received by the consumer and the leak was caused by BULOG itself, then the

consumer has the right to exchange the leaked product for a new and better

product. Another case if the product is damaged first and no longer fit for

sale.

At Perum BULOG, products that are damaged or unsuitable will be

disposed of. Disposal is an effort by Perum BULOG to reduce product quality

and will be tested in the lab. Later products that are of good quality and can

still be used will be resold at a lower price than the normal price. As for

products that are truly damaged in quality, they will be discarded. To carry

out the disposal concept, it must first be submitted to the head office for

licensing whether it may be resold or not.

From interview that conducted by the writer with the business

managers, the cause of damage product is not only the wrong way of storing

or damaged/leaking packaging, but also the period of time the product has

been opened for too long. However, BULOG has handled these damaged

26
products apart from disposing of them, namely product recalls, for damaged

products while in the hands of consumers.

Based on applicable regulations, product withdrawals are not carried

outhaphazardly, but there are provisions for standard operating procedures.

The following is the procedure that must be carried out for product

withdrawal:

Figure 3.1 Product Recall SOP (Personal Documentation)

27
 Based on the picture above, it can be explained that the procedure for

withdrawing products from circulation is sequenced as follows:

1. There is a withdrawal order from BPOM or at the company's initiative.

2. Prepare a withdrawal plan by the company.

3. Inform BPOM regarding the recall plan and product information.

4. Make a notification regarding the product recall action to the relevant

distribution chain and issue a public warning if it is a class I food recall.

5. Withdraw unsafe products from the distribution and sales chain.

6. Place the recalled product in a certain location and label it.

7. Placing products that have been followed up according to procedures for

handling non-conforming products.

8. Monitoring the effectiveness of product withdrawals, if it is sufficient,

then proceed to the stage of stopping the withdrawal. However, if not,

BPOM will issue a withdrawal letter again.

9. Stop product recall.

10. Keep records, data, accurate information to be shown at the time of

inspection.

11. Report the results of product recalls, including preventive measures to

prevent the same problem from recurring, to BPOM.

So, for problems handled by Perum BULOG for damaged products, a

withdrawal is made with BPOM's approval if they have not reached the hands

of consumers. If it reaches the consumer, there are damaged products, then

there is a return of the product within 2 x 24 hours.

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 CHAPTER IV

CONCLUSION AND SUGGESTION

4.1 Conclusion

BULOG is a state-owned public company engaged in food logistics.

The scope of the company's business includes logistics/warehousing,

surveying and eradicating pests, supplying plastic bags, transportation

business, trading in food commodities and retailing. So the handling damaged

products for Perum BULOG will be disposed of, which is an attempt by

Perum BULOG to reduce product quality and will be tested in the lab. Later

products that are of good quality and can still be used will be resold at a lower

price than the normal price.

4.2 Suggestions

Based on the conclusions drawn from this final report, the writer can

conclude several suggestions. Perum BULOG Bengkulu Regional Office

needs to improve the quality of products and packaging so they are not easily

damaged and design better packaging to attract consumers. In addition, better

understand the criteria for good packaging such as no toxins, compatibility,

affordable costs, easy disposal of packaging, and adjusting product weight

and size.

29