Indonesia: El Nino Conditions Compel Indonesia to Import Additional 2 MMT of Rice

On, September 26, 2023, the Government of Indonesia (GOI) announced it will authorize the importation of an additional 2 million metric tons (MMT) of rice to offset rice production shortfalls and bring down rice prices. BULOG, a state-owned logistics company, reported its 2022/23 ending stocks risk falling below food security levels. BULOG has been periodically releasing its government rice reserves stocks to dampen skyrocketing rice prices due to El Nino-induced rice production shortages, but now needs to replenish those stocks with imports. Approximately 1 MMT of this new import allocation must arrive before the end of 2023 to keep BULOG’s stocks from being fully depleted, while the remaining 1 MMT are expected to arrive in early 2024.