JAKARTA: Indonesia’s Trade Ministry signalled that it will approve rice imports ahead of the Hari Raya Aidilfitri celebrations this year.
This is because it expects the demand for rice to increase drastically before the fasting month as compared to normal months. Trade Minister Rachmat Gobel said the rice imports will be issued during discussions about the rice stock at the end of May.
We wait to discuss again in May,” he said. “What is clear is that the government realises the need for a good harvest. We continue to monitor, and later will discuss during the meeting with the Vice-President and President.”
Mr Rachmat stressed the permission to import rice will be decided after taking into account the amount of harvest from the local farmers. He said the demand for rice until the fasting month is still able to be met with the current rice reserve.
“The State Logistics Agency (Bulog) will continue to get rice from the current harvest yields. I’ve been told by the Agriculture Minister that Central Java and East Java will harvest again. So, we’ve asked Bulog to take them,” said Mr Rachmat.
However, he believes Bulog is still not able to ensure the stability of prices for essential goods, especially for rice in the market. Bulog is only able to allocate and supply 1.2 million tonnes of rice to the market, or about 60 per cent of the ideal allocation to the market.
Bulog’s rice allocation (to be supplied to the market) is about 2 million tonnes. Bulog’s allocation at this moment is about 1.2 million tonnes,” said Mr Rachmat.
