Key insights and market outlook
Recent floods in Sumatera Utara, Sumatera Barat, and Aceh have damaged rice fields, potentially impacting 2026 rice production. Bulog's CEO, Ahmad Rizal Ramdhani, stated that the affected areas will likely see a decrease in output, but the government is expected to take corrective measures through the Ministry of Agriculture.
The recent floods in Sumatera Utara, Sumatera Barat, and Aceh have significantly damaged rice fields, potentially affecting Indonesia's 2026 rice production. According to Ahmad Rizal Ramdhani, CEO of Perum Bulog, the extensive flooding has submerged many rice fields, which will likely lead to decreased production next year.
Ramdhani expressed confidence that the government, through the Ministry of Agriculture, will undertake necessary repairs to the damaged agricultural infrastructure. "The Ministry of Agriculture will likely follow up on the repairs of the damaged rice fields," he explained during a press conference at Bulog's headquarters in Jakarta.
The potential reduction in rice production comes at a critical time for Indonesia, one of the world's largest rice consumers. Any significant decrease in domestic production could impact food security and potentially lead to increased imports or price hikes.
As the state-owned enterprise responsible for rice stock management, Bulog plays a crucial role in maintaining Indonesia's food security. The company's monitoring of the situation and collaboration with relevant authorities will be essential in mitigating the effects of the floods on rice production.
Flood Damage to Rice Fields
Potential Decrease in Rice Production