The Indonesian government plans to import 2 million tons of rice in 2023. This plan is included in an assignment letter from the National Food Agency (Bapanas) to the Logistics Agency (Bulog) released on March 24, 2023.
"We assign Perum Bulog to procure government rice reserves from abroad, amounting to 2 million tons until the end of December 2023. The procurement of the first 500,000 tons will be carried out as soon as possible," wrote Bapanas in its letter, as reported by Katadata on Monday (March 27, 2023).
The planned volume of rice imports in 2023 has surged by 365% compared to 2022 (year-on-year/yoy), making it the highest record in the last five years.
This is reminiscent of the situation in 2018, when the volume of national rice imports suddenly increased by 638% (yoy) to 2.25 million tons.
The surge in rice imports in both 2018 and 2023 occurred a year before the general election.
However, President Jokowi stated that this year's rice import plan is not related to election preparations, but rather to anticipate the El Niño weather phenomenon that could disrupt rice production.
"We don't want to be scrambling to buy rice during a prolonged dry season because there's none available," Jokowi said, as broadcast on the Presidential Secretariat's YouTube account on Thursday, April 6, 2023.
Meanwhile, based on data from the Ministry of Trade, rice prices in Indonesia have continued to rise throughout the first quarter of 2023.
In March 2023, the average national price of premium quality rice reached Rp13,713 per kilogram (kg).
This price increased by 1.4% compared to February 2023 (month-on-month/mom), increased by 10.6% compared to March 2022 (year-on-year/yoy), and became a new record high in the last five years.
An increase also occurred in medium-quality rice. In March 2023, the average national price of medium-quality rice reached Rp11,869 per kg. The price increased by 1.4% (mom), increased by 14.1% (yoy), and became the highest price since 2018.
"(The price of) rice has not been successfully lowered until today. In fact, it tends to increase, and the increase is not small, it's more than Rp1,000. Although data shows that we have a large surplus (of rice)," said Trade Minister Zulkifli Hasan in a meeting with Commission VI of the DPR, as reported by Katadata on Tuesday, March 28, 2023.