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Rice Production in Indonesia Steadily Decreases, Says BPS

Acting Head of Statistics Indonesia (BPS) Amalia Adininggar Widyasanti reported that the rice production trend in Indonesia steadily decreased from 2021 to 2023, during the September to December period.

“Compared to last year during the September to December period, in 2023 the rice production decreased 0.06 million tonnes,” she said in Jakarta today, November 6.

Meanwhile, during the October to December period, rice production decreased by 0.59 million tonnes, and overall, the production decreased by 0.65 million tonnes this year. Amalia stated that the rice production deficit has been ongoing since July. Still, the highest is recorded in December with a 1.45 million tonnes deficit, with the addition of the rice import data.

The rice import data, however, would create a surplus in rice production throughout 2023, albeit significantly smaller in number compared to 2022. The rice production surplus in 2022 amounted to 1.34 million tonnes, while it is calculated to amount to 0.28 million tonnes in 2023.

According to Amalia, this condition is a result of rice export restrictions implemented by several countries, including India, Indonesia’s primary rice exporter. India’s rice export ban started in July 2022 and will reportedly be lifted by December 2023.

BPS reported that this ban caused a shift in the rice import market in Indonesia. In 2023, Indonesia’s biggest rice source is Vietnam, with 74.06 percent of imports, followed by Thailand with 24.35 percent of rice imports, while India carries 0.39 percent of Indonesia’s imported rice.

As of October 2023, rice is also still the biggest contributor to inflation in Indonesia. Amalia relayed that rice inflation occurred in 87 cities across the country.

Source: Tempo.co