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Indonesia’s National Rice Production Expected to Decrease by 760,000 Tons, BPS Reports

by Geraldine S.
10/17/2024
in Importing & Exporting

The Central Statistics Agency (BPS) of Indonesia has projected a drop in national rice production by 760,000 tons, or 2.43%, compared to the previous year. The Ministry of Agriculture (Kementan) acknowledged this potential production decline early in 2024, citing the impact of El Nino and delayed planting seasons as primary causes.

Moch. Arief Cahyono, Head of Public Relations and Public Information at Kementan, explained that mitigation efforts, including reallocating Rp1 trillion from the Ministry’s 2023 budget for seeds, agricultural equipment, fertilizers, and pesticides, were initiated following the inauguration of Agriculture Minister Andi Amran Sulaiman in October 2023.

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The delayed planting period at the end of 2023 shifted the peak harvest period from March-April 2024 to later in the year, leading to an initial production shortfall. To address this, 3.5 million tons of rice were procured from abroad by Perum Bulog. However, thanks to interventions such as water pumping and increased fertilizer availability, rice production saw improvement from August 2024, with a trend expected to continue through December.

BPS data showed that rice production during the August-October 2022 period stood at 12.55 million tons, a figure that remained stable in 2023. In 2024, production increased to 14.73 million tons, with second-semester production totaling 23.36 million tons, up from previous years. The Expanded Planting Area (PAT) program, initiated by Kementan in early 2024, contributed to this increase, enabling higher planting frequency.

Arief also noted that the government’s policy of boosting the quota of subsidized fertilizers from 4.7 million tons to 9.5 million tons since early 2024 has supported this recovery. Registered farmers can redeem these fertilizers by providing their original ID cards.

Looking ahead, the government is working to optimize land use, expand planting areas, and develop 3 million hectares of new paddy fields by 2025. The goal is to return Indonesia to rice self-sufficiency within three years, with ambitions to become a global food exporter.

Stay updated with supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.

#RiceProductionUpdate #IndonesiaAgriculture #FarmingNews #FoodSecurity #AgricultureTrends

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