According to the latest statement of Indonesian President Joko Widodo on October 8, 2023, this country will need about 1.5 million tons of national rice reserves from now until the end of 2023, in addition to the 2 million tons of rice reserves already available. imported from the beginning of the year until now.
According to President Jokowi, "The amount of rice harvested in the last 6 months of 2023 is not enough to meet domestic rice demand. The government needs an additional 1.5 million tons of rice reserves by the end of 2023." The reason this country needs more rice reserves according to President Jokowi comes from the country's agricultural production being strongly affected by the El Nino phenomenon as well as the Government needing more rice to stabilize the rising market price of rice. strong in recent times. The content of this President's statement was also previously announced by Mr. Arief Prasetyo Adi - Chairman of the National Food Authority on October 4, 2023, according to which "The government of this country is leaving open the possibility of importing more". 1.5 million tons of rice by the end of 2023". According to the National Food Authority-Bulog, the amount of rice currently in the agency's warehouse as of September 22, 2023 reached 1,723,000 tons, of which 1,659,000 tons are national reserve rice and 63,910 thousand tons is commercial rice.
Rice prices in Indonesia have increased sharply in recent times. According to the National Food Authority, the retail price of rice on October 8, 2023 in this country is 13,200 Rp/kg (exchange rate of 1 USD is equivalent to 15,400 Rp) for average grade rice; 14,920 Rp/kg for high quality rice while the highest retail price of rice according to government regulations is 10,900-11,800 Rp/kg for medium grade rice and 13,900-14,800 Rp/kg for quality rice High. Indonesian rice price inflation in September 2023 increased by 18,44% compared to the same period last year, the highest since 2014. Rice price in September 2023 was 5,61% higher than August 2023, the highest level since February 2018.
According to the Indonesian Ministry of Agriculture, in 2023 the country has set a target of producing 54.5 million tons of paddy equivalent to 32.07 million tons of rice, equivalent to the target for 2022. However, this forecast output will adjusted due to the influence of the El Nino phenomenon. Surveys in many localities show that rice production and productivity are currently strongly affected by the El Nino phenomenon. The expected yield will be only about 4 tons/ha compared to the average yield of 5-6 tons/ha; The operating capacity of many rice mills is currently only about 20-30% in August 2023.
The El Nino phenomenon has caused Indonesia's domestic rice production to decline and rice prices in the market to increase sharply, forcing the country to continue and quickly import an additional 1.5 million tons of rice for national reserves in the coming months. The earliest time to stabilize market prices and stabilize social order, especially in the context that the country will conduct presidential and National Assembly elections in February 2024. The Indonesian government will not let any food crisis happen before the election.
According to statistics from Vietnam Customs, the total amount of Indonesian rice imported from Vietnam in the first 8 months of 2023 reached 718,091 tons with a value of 361 million USD, an increase of 15.5 times in volume and 16.4 times in value. compared to the same period in 2022. According to statistics from Indonesian authorities in the first 7 months of 2023, the country's total rice imports from Vietnam account for 47% of total imports and from Thailand is 50%.
