Vice President Kalla to stop import as Indonesia sees 2.8 million tonnes in rice surplus

23 October 2018 15:48

JAKARTA. The Central Bureau of Statistics has confirmed that the national rice stock this year is a surplus of 2.8 million tonnes. With this result the government will close tightly the import tap.

"We do not have a plan now to import at all because it does not meet the requirements," said Vice President Jusuf Kalla at his office on Jalan Veteran, Jakarta, Monday (22/10).

In addition to experiencing a rice surplus of 2.8 million tonnes, Mr Kalla said that the rice stock owned by the State Logistics Agency (Bulog) is also quite large at 2.2 million tons. Therefore, the national rice price this month is stable even though in some regions there is a decline.

According to Mr Kalla, rice imports will be carried out if the rice stock owned by Bulog is below 1 million tonnes. Another indicator is that the price of rice moved up in the range of 10% from the benchmark price set by the Ministry of Trade.

"Now that requirement is not met. The 2.2 million tonnes of Bulog stock is adequate, and the price is also more stable. It (Bulog) will not import, there is no reason for importing," he said.

Coordinating Minister for Economic Affairs Darmin Nasution explained about the 2 million tonnes of rice import licenses granted to the National Logistics Agency this year. The policy must inevitably have to be decided given that the rice stock of Bulog at the beginning of the year was below 1 million tonnes. Prices on the market also move wildly.

"So indeed at that time all of the alarms are sounded, it (rice import) must be done," Mr Nasution said. (AM/MS)

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