16-9-2023 (JAKARTA) The Bank of Indonesia (BI) conducted its first auction, selling Rp 24.46 trillion (US$1.59 billion) worth of new rupiah securities in an effort to attract capital inflows and reduce excess local currency, according to an official statement from BI.
The auction featured 6-, 9-, and 12-month certificates, with the majority of the allocation going to the 12-month certificate, amounting to Rp 15.03 trillion at an average yield of 6.40488%, BI reported. The exchange rate was $1 = 15,350.0000 rupiah.
Meanwhile, Indonesia has experienced a significant increase in rice imports during the first eight months of the year compared to the same period in 2022, as the government aims to replenish its stockpiles of this essential staple.
According to Amalia Adininggar Widyasanti, the acting chief of Statistics Indonesia, the country’s statistics agency, Indonesia, the most populous country in Southeast Asia with 270 million people, imported 1.59 million metric tons of rice from January to August, a significant rise from the 237,146 tons imported during the same period a year ago. Widyasanti shared this information during a briefing on the country’s trade data.
Of the total imports, more than half originated from Thailand, amounting to 802,000 tons, followed by shipments from Vietnam at 674,000 tons, India at 66,000 tons, and Pakistan at 45,000 tons.
To mitigate the impact of the El Nino weather pattern, which causes dry weather in Southeast Asia, the government has assigned state procurement food company Bulog to import 2.3 million tons of rice this year. However, as of earlier this week, 453,000 tons were yet to be contracted, according to a Bulog official.
Indonesian President Joko Widodo addressed the challenges faced in securing rice from overseas due to export restrictions imposed by certain countries. He stated, “Global rice prices are rising. We want to increase our strategic rice reserve, but even importing it is difficult.” President Widodo made these remarks at a separate event on Friday, highlighting the difficulties faced in procuring rice from abroad.
Hot weather in key rice-growing regions across Asia is threatening harvests, leading to a 20% increase in rice prices. Top exporter India and other countries have limited rice shipments to manage inflation and ensure food security for their own populations.
The National Food Agency stated earlier this week that Indonesia’s total rice imports for 2023, including those for hotels and restaurants, are estimated to reach 2.9 million tons.
