Andi Amran Sulaiman, Indonesia's Agriculture Minister, says Indonesia is ready to become a rice exporter after Indonesia managed to become self-sufficient in rice in 2016. Last year Indonesia produced a total of 79.17 million of unmilled tons of rice, significantly above the government target that was set at 72 million tons. Although Indonesia is the world's third-largest rice producer the country usually needs to import rice from Vietnam or Thailand to maintain stable prices and meet huge rice demand at home. Rice is the staple food of basically all Indonesian people.

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Seperti yang disetujui pada bulan lalu, pada November ini Indonesia akan mulai mengimpor sekitar 1,5 juta ton beras dari Vietnam. Sebelumnya di tahun ini, Indonesia telah mengimpor 60.000 ton beras untuk menstabilkan harga beras karena ada kenaikan harga beras yang menguatirkan, yang Pemerintah tuduhkan terjadi karena mark-up harga oleh para pedagang pasar. Beras adalah makanan pokok untuk penduduk Indonesia, mengimplikasikan bahwa segmen masyarakat miskin menghabiskan porsi yang relatif besar dari pendapatan yang dapat dibelanjakan mereka untuk membeli beras. Ini berarti bahwa inflasi beras dapat menyebabkan kenaikan angka kemiskinan.

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In order to avert a spike in inflation and social unrest, Indonesian President Joko Widodo may feel forced to allow around 1.5 million metric tons of rice imports in 2015 as domestic prices of rice have been rising on sluggish local harvests. Moreover, an intensifying El Nino is expected to cause dry weather in the months ahead hence further jeopardizing rice productivity. These already tough conditions will be exacerbated by seasonal Islamic celebrations (Ramadan and Idul Fitri) that always trigger increased consumption of food products.

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The price of rice in several Indonesian regions has risen by between 17 to 23 percent to IDR 8,500-9,000 per kilogram as rice production at the start of the year has not been able to meet rice demand. In January 2015, Indonesian rice production stood at 2 million tons, whereas demand reached 2.5 million tons. Inflation of rice is a sensitive issue in Indonesia because it jeopardizes declining poverty rates as poorer segments of Indonesian society spend over half of their total disposable income on food items, primarily rice.

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There are many important commodities. But if we talk about food commodities, then rice certainly ranks high. This particularly applies to Asia where the populations are dependent on rice as the basic staple food that is consumed every day (and usually up to three times per day).

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