Indonesia to raise rice reserves to 2 mln tonnes by year-end

Indonesia's National Food Agency (Bapanas) aims to increase government rice reserves to 2 million tonnes by the end of this year as rice demand is expected to rise in the last months of the year.

During a meeting with the House of Representatives (DPR) on Wednesday, Bapanas head Arief Prasetyo Adi said that the rice reserves need to be increased because rice production is predicted to decline at the end of the year and in early 2025.

As of September 2, 2024, the national rice stocks of the Indonesia’s National Logistics Agency (Bulog) stood at 1.39 million tonnes, including 1.31 million tonnes of rice-in-hand and 84.750 tonnes of imported rice-in-delivery, he noted.

He said that now is the right time to raise the rice reserves as rice production in the September and October period may increase to 2.87 million tonnes and 2.59 million tonnes, respectively.

The figures reflect a growth compared to June and July, when rice production was recorded at 2.06 million tonnes and 2.05 million tonnes, respectively.

According to the BPS survey, production in September and October is projected to surpass national rice consumption of 2.58 million tonnes for the same period, indicating a surplus.

Earlier, Bulog President Director Bayu Krisnamurthi said that the agency, which received a rice import quota of 3.6 million tonnes this year, has imported 2.4 million tonnes of rice.

The remaining quota of 1.2 million tonnes is expected to be brought in before December. The imported rice will be used as government reserve rice, including for the Rice Supply and Price Stabilisation (SPHP) programme.