16-9-2023 (JAKARTA) Indonesia, the largest economy in Southeast Asia, has witnessed a significant surge in rice imports during the first eight months of this year compared to the same period last year, according to data released by the statistics agency on Friday. The move comes as the nation strives to bolster its stocks of this vital commodity.
Global rice prices reached a 15-year high last week following India’s decision in July to ban the export of non-basmati rice. The ban was attributed to various factors, including soaring domestic prices and adverse climatic conditions.
Amalia Adininggar Widyasanti, the head of Statistics Indonesia, revealed that Indonesia imported 1.59 million tons of rice between January and August 2023. In comparison, the total rice imports for the entire year of 2022 amounted to over 429,000 tons.
“Rice imports experienced a significant increase during the period from January to August 2023 compared to the same period last year,” Widyasanti stated during a press conference, refraining from disclosing the exact import figure for the corresponding period last year.
The majority of rice imports originated from neighboring Southeast Asian countries. Thailand accounted for 802,000 tons, while Vietnam exported 674,000 tons of rice to Indonesia during the specified period.
To ensure price stability due to anticipated disruptions in rice production caused by the El Niño weather pattern, the government had set an import quota of 2.3 million tons for this year. However, these import efforts faced complications due to restrictions imposed by other countries, including India, as highlighted by President Joko Widodo on Friday.
“We are determined to strengthen our strategic rice reserves, but the import process has become increasingly challenging compared to the past,” President Widodo remarked in a speech.
In an effort to alleviate rising rice prices, President Widodo instructed the state-owned logistics company, Bulog, to release its reserve stocks into the market. As of Friday, the average nationwide rice price stood at 14,490 rupiahs ($0.94), reflecting an approximate 16% increase compared to the same period last year, according to data from the National Food Agency.
