12-9-2023 (JAKARTA) President Joko Widodo, commonly known as Jokowi, reassured the public on Monday that Indonesia has an ample supply of rice to meet domestic demand, addressing concerns about rice supplies amidst rising prices caused by periods of drought and reduced production.
In August, rice prices surged at the fastest rate in over a decade, despite relatively low inflation rates. According to central bank data, the average price increased by as much as 16% compared to the same month the previous year, reaching 14,000 rupiah (91 US cents) per kilogram. This marked the highest price level since at least March 2017 when record-keeping began.
Jokowi stated that Indonesia currently possesses 1.6 million metric tons of government-owned rice stock stored in warehouses, with an additional 400,000 tons of imported rice supply in transit. He emphasized that this stockpile exceeds the usual 1.2 million tons, providing a sufficient buffer to address any concerns about rice availability.
During a visit to a warehouse owned by the state food procurement company Bulog in Bogor, near Jakarta, the president launched an 8 trillion rupiah ($520 million) rice assistance program. Under this initiative, the government will distribute 640,000 tons of rice to 21.35 million low-income households over a three-month period.
Jokowi explained that the program’s primary objective is to shield low-income households from the impact of rising rice prices. Rice holds significant importance in the diets of the majority of Indonesia’s 270 million citizens, and fluctuations in its price are highly politically sensitive, particularly with elections scheduled for February.
The National Food Agency has estimated that drought conditions, exacerbated by the El Niño weather phenomenon, could result in a 5% to 7% reduction in rice production this year compared to the 31.54 million tons produced last year.
In response, Indonesia has authorized the import of 2.3 million tons of rice this year to mitigate the effects of El Niño. However, a Bulog official revealed during a separate coordination meeting on food supply that contracts for 453,000 tons of this rice have yet to be secured.
Jokowi, who recently attended the G20 leaders’ summit in India, stated that he has engaged in discussions with countries such as Cambodia, China, and Bangladesh to establish standby agreements for future rice imports.
Indonesia typically sources rice imports from major exporters like Thailand, Vietnam, and India.
