In response to the threat of El Nino and prolonged drought, the Indonesian government is accelerating rice imports as rice is a staple food for the Indonesian population. The Central Statistics Agency (BPS) reports that rice imports reached 1.33 million tons during January to July 2023, valued at USD 715.9 million or Rp 10.98 trillion (at an exchange rate of Rp 15,338).
The imported rice comes from various countries in the Southeast Asian region, with Vietnam, Thailand, and India being the main source countries during the specified period. The move to increase rice imports is part of the government's efforts to ensure an adequate rice supply, particularly in light of potential shortages due to crop failures caused by El Nino. The government's aim is to have rice reserves of over 2.2 million tons by the end of 2023, as stated by the Coordinating Minister for Economic Affairs, Airlangga Hartarto.
However, Airlangga has not disclosed the exact volume of rice imports that the government plans to undertake. He emphasized that the import plans are under the purview of the State Logistics Agency (Bulog) and that negotiations are underway to determine the appropriate volume of imports, which aims to prevent market disruption and maintain stable prices.
