Indonesia's Strategic Rice Imports for Industrial Purposes

Context and Statistics

Indonesia imported 364,300 tons of rice between January and October 2025, with a total value of US$178.5 million. The imports came primarily from Myanmar, Thailand, and India. According to the Central Bureau of Statistics (BPS), this import activity is part of a managed approach to meet specific industrial needs.

Government Clarification

Moch Arief Cahyono, Head of the Communication and Information Services Bureau at the Ministry of Agriculture, emphasized that these imports are strictly for special categories including industrial use and premium rice varieties. He stressed that there have been no imports of medium-quality rice that could potentially disrupt the domestic market or affect general consumer consumption.

Policy Rationale

The Indonesian government has implemented a commodity balance approach to manage rice imports. This policy ensures that only rice types not produced domestically or required as industrial raw materials are allowed into the country. The measure aims to protect local farmers while meeting specific industrial demands that cannot be fulfilled by domestic production.

Market Implications

This strategic import policy demonstrates Indonesia's balanced approach to food security and industrial needs. By restricting imports to specific categories, the government maintains support for local rice farmers while ensuring industries have necessary raw materials. The policy also helps prevent market disruption and price volatility that could arise from unrestricted imports.