“In accordance with Bapanas' assignment to the State Logistics Agency (Bulog), the minimum secured CBP stock at Bulog is one million tons. We also use imported rice to strengthen CBP stocks," he stated in Jakarta on Tuesday.
Adi explained that the mandate for Bulog to import two million tons of rice in 2024 must be carried out amid the decline in Indonesia’s rice production due to the El Nino phenomenon.
"We know that the condition of national rice production declined due to the impact of climate change and El Nino. We experience the impact months after it, so in early 2024, there is a deficit in monthly rice balance," he remarked.
Statistics Indonesia (BPS) estimated that Indonesia will record a rice deficit in the January-February 2024 period, with a total deficit of 2.83 million tons. The deficit in January is forecast to reach 1.61 million tons, while in February, it is projected at 1.22 million tons.
This condition can cause an escalation in rice prices, so taking requisite precautionary measures is deemed necessary.
Adi asserted that his agency continues to make efforts to maintain balance in rice prices at the levels of farmers, producers, and consumers.
He also made assurance that rice imports will not significantly affect prices of the commodity at the farmers' level.
"If later, the Ministry of Agriculture is able to realize rice production of above 2.5 million tons in a month, we hope the rice prices will start to decline," he remarked.
One of the indicators of no significant decline in rice prices due to rice imports is the Food Crop Farmer Exchange Rate (NTPP) index that experienced positive changes throughout 2023.
The BPS recorded that the NTPP in December 2023 stood at 114.24, higher than 113.92 recorded in November 2023. The NTPP in December 2023 also showed a significant increase as compared to 101.71 recorded in December 2022.
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Translator: Kuntum Khaira, Raka Adji
Editor: Azis Kurmala
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