JAKARTA: According to Bulog, the nation’s state food procurement business, Indonesia intends to set its rice import limit for the following year at 2 million metric tons, which is less than this year.
According to Awaludin Iqbal, business director for Bulog, domestic supply and demand will determine the import realization in 2024.
In addition to its 300,000 tonnes carry-over quota from 2022, Indonesia immediately issued 2 million tonnes of import for this year.
Although some of this could be realized in early 2024, officials decided to add an additional 1.5 million kilograms for this year next quarter.
Big import quotas were put in place to control rising domestic wheat prices brought on by drier-than-usual climate that was affecting harvests. According to government statistics, ordinary rice retail prices in October increased by more than 19 % on an annual basis.
The authorities decided to further expand its wheat handout program until June, which provides 10kg of rice per month to 22 million lower-income households to help them deal with the high prices of the mainstay. The 2024 allotment came after the government made the decision to do so.
Originally, the program was scheduled to end the following month.
Trade Minister Zulkifli Hasan stated to writers on Monday that” we decided to extend the program considering the wheat price has yet to lose.”
To ensure that the imported wheat remains cheap, responsibilities for the 1.5 million kilograms of extra imports may be waived, the nation’s National Food Agency announced late on Monday.
Arief Prasetyo Adi, the head of NFA, stated in a statement that the money exchange rate was near to 16, 000 ringgit and that this opportunity was due to the high foreign exchange rates.
In the months of January and September, Indonesia imported 1.79 million metric tonnes of grain, while Bulog’s grain stock was as of the beginning of this month, at 1.4 million.