Indonesia's rice imports surge amidst climate concerns

Government looks to China for 1 million tons

{reg}Indonesia, grappling with the impact of the El Nino weather pattern, is seeking to import a substantial one million metric tons of rice from China, according to the National Food Agency (NFA). With 270 million people, Indonesia faces challenges due to extreme weather events associated with El Nino, including wildfires and droughts, threatening rice harvests in key growing regions.

The NFA anticipates that drought conditions exacerbated by El Nino could lead to a 5 to 7 percent reduction in rice output this year compared to the 31.54 million tons produced last year. Arief Prasetyo Adi, head of the NFA, stated that this import option was discussed during the ASEAN summit.

Indonesia is also in talks with Cambodia, which has agreed to export 10,000 metric tons of rice. The country has already seen a significant increase in rice imports, with 1.59 million metric tons imported in the January-August period, compared to 237,146 tons during the same period the previous year. Thailand and Vietnam were the primary sources of these imports.

Rice prices in Indonesia have surged, experiencing the fastest pace of increase in over a decade. The average price climbed by as much as 16 percent from the previous year, reaching 14,000 rupiah (USD 0.91) per kilogram, the highest since March 2017, as per central bank data.

Despite rising prices, President Joko Widodo had previously assured that the country's rice stock was sufficient to meet demand. The move to import from China reflects Indonesia's commitment to securing its rice supply in the face of climate-related challenges.[/reg]