Warehouse Receipt System (WRS): Functions, Benefits, and Commodity Types

When it comes to managing harvests or production, farmers and agribusinesses often face challenges such as storage, price stability, and access to financing.

To address these needs, the government introduced the Warehouse Receipt System (WRS)—a mechanism that allows farmers, fishers, and businesses to store commodities in accredited warehouses and receive a warehouse receipt as proof of ownership.

Backed by a strong legal foundation under Law No. 9 of 2006 and its amendments, SRG was established to strengthen food security, provide easier access to financing, and help stabilize commodity prices.

Supported by the government since the draft law in 1999 and formalized in 2006, SRG has become an important instrument in agriculture, plantations, and related industries. Let’s take a closer look at its functions, advantages, and commodity coverage so you can make the most of this system.

What is the Warehouse Receipt System (WRS)?

SRG is a mechanism that allows farmers, fishers, and entrepreneurs to store commodities in licensed warehouses and receive a warehouse receipt as proof of ownership.

This receipt serves not only as a storage document but also as collateral for loans, strengthening bargaining power and easing access to financing.

The system is governed by Law No. 9 of 2006, later revised by Law No. 9 of 2011, and further supported by implementing regulations.

Its objectives are to help businesses overcome working capital challenges, stabilize prices, and improve both the quality and productivity of commodities.

Functions of the Warehouse Receipt System

The SRG provides a range of benefits to farmers and agribusinesses in managing their commodities more effectively. Its key functions include:

• Commodity storage – Offering secure facilities for harvests so they can be sold at the right time.

• Financing collateral – Warehouse receipts can serve as collateral for working capital loans from financial institutions.

• Stock management – Enabling storage when prices are low and sales when prices rise, maximizing profit potential.

• Inflation control – Regulating supply to stabilize selling prices and prevent sudden spikes that harm consumers.

Benefits of the Warehouse Receipt System

SRG goes beyond storage—it provides strategic advantages for farmers and businesses, such as:

1. Easier Access to Financing
   With warehouse receipts, businesses can secure loans without selling their goods prematurely. This allows them to obtain working capital, delay sales until market prices are better, and still maintain liquidity.

2. Price Stabilization
   By storing harvests during surplus periods, farmers can wait to sell when prices increase. This helps ensure fair profits while contributing to overall market stability.

3. Professionalism and Transparency
   Accredited warehouses are professionally managed, ensuring accurate records and guaranteed commodity quality. This builds trust among buyers and financial institutions while promoting more transparent commodity trading.

How the Warehouse Receipt System Works

The SRG involves multiple stakeholders: farmers, cooperatives, SMEs, warehouse operators, conformity assessment bodies (LPK), registration centers, insurers, and financial institutions.

The process begins when a business delivers commodities to an SRG warehouse for quality testing by the LPK. If approved, the LPK issues a certificate containing full commodity details.

The warehouse operator then finalizes storage agreements, arranges insurance, and obtains a registration code from the central registry to issue the warehouse receipt.

This receipt includes critical information such as owner identity, commodity description, storage costs, and expiration date.

The data is also recorded in the registry and can be used as loan collateral, stored as assets, or traded.

To support SRG implementation, Bappebti provides an integrated, real-time price information system—helping farmers determine the best time to sell and enabling financial institutions to assess financing value more accurately.

Commodities Covered by the Warehouse Receipt System

According to Minister of Trade Regulation No. 14 of 2021, 20 types of commodities can currently be stored under SRG, including:

• Paddy

• Rice

• Corn

• Coffee

• Cocoa

• Pepper

• Rubber

• Seaweed

• Rattan

• Salt

• Gambier

• Soybeans

• Tea

• Copra

• Tin

• Shallots

• Fish

• Nutmeg

• Frozen chicken carcasses

• White crystal sugar

Future commodities may be added by ministerial decree, based on recommendations from local governments, agencies, or commodity associations.

Eligible commodities must have a minimum storage life of three months, meet quality standards, and hold significant regional or national economic importance—whether for food security or export potential.

The Warehouse Receipt System provides farmers and businesses with better opportunities to preserve commodity quality and secure additional financing.

However, if you require more flexible funding outside of SRG mechanisms, BFI Finance offers a reliable solution. With multipurpose loan products backed by motorcycle or car ownership documents (BPKB) or property certificates, you can access working capital quickly, with competitive interest rates and flexible requirements.

With over 40 years of experience, and fully licensed and supervised by the Financial Services Authority (OJK), BFI Finance ensures secure and trustworthy transactions.

Take the next step toward your business goals—because with BFI Finance, #ThereIsAlwaysAWay.