Jokowi: Rice imports insufficient for meeting 5% of nation’s total needs
Published on: May 13, 2024.
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Rice imports cover less than 5% of Indonesia’s total needs, says President Jokowi
Jakarta – President Joko Widodo, popularly known as Jokowi, has stated that rice imports carried out by the State Logistics Agency (Bulog) only account for less than 5% of Indonesia’s total national needs. During his visit to the Bulog warehouse in Muna District, Southeast Sulawesi, Jokowi emphasized that rice imports are necessary to ensure stable prices of the commodity at the consumer level.
Jokowi highlighted that these imports, which constitute less than 5% of the total demand, originate from countries like Vietnam, Thailand, Cambodia, and Pakistan. However, he acknowledged that meeting the rice needs of the country’s 280 million Indonesians is not an easy task.
During his visit, Jokowi took measures to ensure the availability and stability of the national food supply by distributing food reserves to beneficiary families. Under this initiative, 10 kilograms of rice aid is provided to each beneficiary family every month. The distribution is expected to continue until June and may be extended until December, depending on the availability of the State Budget.
Jokowi explained that this rice aid program was implemented in response to the global food inflation that resulted in a price increase. Despite the increase, the price of rice in Indonesia remains relatively affordable compared to other countries where prices have risen by up to 50%.
However, Jokowi acknowledged the challenges of maintaining rice prices in Indonesia while also ensuring the welfare of farmers and affordability for consumers. He remains optimistic that the distribution of rice assistance will alleviate the burden on those affected by the price hike.
Bulog has reported that as of the beginning of May 2024, Indonesia has realized an import of 1.3 million tons of rice out of a total quota of 3.6 million tons. According to projections by the National Food Agency (Bapanas), Indonesia’s rice demand in 2024 is expected to reach 31.2 million tons. The current realization of rice imports accounts for only 4.1% of the country’s total demand.
Rice imports and their significance
While Indonesia heavily relies on domestic rice production, rice imports play a crucial role in ensuring a stable supply and affordable prices for consumers. These imports sources from countries such as Vietnam, Thailand, Cambodia, and Pakistan contribute to meet less than 5% of the total demand. To address the challenges of maintaining rice prices and the welfare of farmers, the government of Indonesia is implementing measures like the distribution of rice aid to beneficiary families.
Importance of stabilizing rice prices
The stability of rice prices is vital for ensuring food security and affordability for consumers. The government’s proactive approach to import rice when necessary helps maintain stable prices at the consumer level. By importing rice, Indonesia can prevent drastic price increases and ensure a steady supply of this essential commodity.
Rice aid program
The distribution of 10 kilograms of rice aid to beneficiary families has been a significant step taken by the government to mitigate the impact of price hikes on vulnerable populations. This initiative is expected to continue until June and may be extended, depending on the availability of the State Budget.
The distribution of rice aid aims to alleviate the burden on people affected by the price increase. Although rice prices in Indonesia have risen, they remain relatively affordable compared to other countries experiencing more significant price hikes.
The challenge of meeting rice demands
With a population of 280 million, meeting the rice demands of Indonesians is a challenging task. While imports cover only a small portion of the total needs, they play a crucial role in maintaining stable prices and ensuring sufficient supply. The government remains committed to addressing these challenges and ensuring the welfare of farmers and affordability for consumers.
Rice imports and future projections
Bulog has projected that Indonesia’s rice demand in 2024 will reach 31.2 million tons based on the national food balance prognosis. As of May 2024, Indonesia has imported 1.3 million tons of rice out of a total quota of 3.6 million tons. This indicates that the current realization of rice imports accounts for only 4.1% of the country’s total demand.
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