Vietnam Rice Markup Issue: What's the Latest Trend in Indonesian Rice Imports?

The National Food Agency (Bapanas) and state-owned food logistics company Perum Bulog have been reported to the Corruption Eradication Commission (KPK) on allegations of price markups on imported rice from Vietnam's Tan Long Group. The report was filed by the People's Democracy Study Institute (SDR).

According to *Katadata*, citing *Antaranews*, both Bapanas and Perum Bulog deny the allegations. Perum Bulog claims it is a victim of unfounded accusations.

Perum Bulog's Director of Supply Chain and Public Services, Mokhamad Suyamto, explained that Tan Long, the company reported to have submitted a rice offer, never actually submitted a price offer since the 2024 bidding process opened.

"So, there is no import contract with them this year," said Suyamto.

Meanwhile, the Deputy for Food Availability and Stabilization at Bapanas, I Gusti Ketut Astawa, stated that he respects the complaint filed with the KPK regarding the alleged markup on the import of 2.2 million tons of rice.

"We certainly respect and appreciate the report from the public as a right in a democracy. We must also respect and fully support the KPK's law enforcement and corruption eradication efforts," said Ketut in a statement to *Antaranews* on Friday (5/7/2024).

According to data from the US Department of Agriculture (USDA), Indonesia's rice imports as of June 2024 reached 1.5 million metric tons. This volume is the same as in May 2024.

Annually, the volume of national rice imports has been increasing. In 2020-2021, the import volume was only 650,000 metric tons. It increased to 740,000 tons in 2021-2022.

Import volumes in 2022-2023 and 2023-2024 soared to 3.5 million metric tons each.

Indonesia's imports are in the middle range. The highest importer is the Philippines, with a volume of 4.7 million tons in May 2024.

The USDA reports that the price of Vietnamese rice fell by US$9 to US$567/ton, remaining the lowest-priced supplier. The price of Thai rice increased by US$35 to US$622/ton. Thailand's strongest sales are to Indonesia and the Philippines, with strong currencies as well.

The price of Pakistani rice rose by US$5 to $581/ton, driven by continued sales in Africa. Export prices for Indian white rice are unavailable since the ban on the export of milled white rice was implemented on July 20, 2023.

(See also: Indonesia Imports 567,000 Tons of Rice in March 2024, These are the Suppliers)