According to the publisher, Indonesia's rice production in 2022 was about 35.05 million tons, and domestic consumption was 35.98 million tons. In 2023, rice production was 34.33 million tons, which still could not meet the domestic demand for rice in Indonesia. According to the publisher's forecast, due to the extreme hot weather and slow imports, rice stocks in Indonesia will continue to decline.
Indonesia is a net importer of rice, meaning it buys more rice from other countries than it sells. The country's reliance on imported rice is expected to increase.
The Indonesian government has said that the imports are to meet domestic demand in the event of a low farmer's harvest. There is also a need to ensure stockpile security.
In 2023, Indonesia approved a rice import quota of 3.8 million tons, but only 2.74 million tons were actually imported; this included more than 1 million tons of rice from Vietnam. At the beginning of 2024, the Indonesian government also approved an import quota of 2 million tons of rice for 2024, plus 1.06 million tons of unused quota for 2023. The publisher expects that in 2024, Indonesia will need to purchase 3.06 million tons of rice.
According to statistics, at the beginning of February 2024, the average export price of 5% broken rice from Thailand was the highest in the world at US$653 per ton, from Vietnam at US$639 per ton, and from Pakistan at US$637 per ton.
Indonesia's target for 2024 is to produce 55.42 million tons of domestically produced rice, a figure higher than the 2023 target of 54.5 million tons. Nonetheless, the Indonesian government will still import rice in 2024, with an estimated import volume of more than 3 million tons.
The price of rice in Indonesia is also rising as Indonesian rice stocks are declining. In 2024, the approximate wholesale price range for Indonesian rice is between $0.56 and $1.47 per kilogram, or between $0.25 and $0.66 per pound. The import price per kilogram of rice into Indonesia has been quite volatile over the past five years. In 2017, the price was USD 0.92, followed by a sharp decline to USD 0.46 in 2018. This was followed by a significant increase to USD 2.45 in 2019, and a further increase to USD 2.76 in 2020. The price then drops to USD 0.80 in 2021, before settling at USD 0.66 in 2022. In 2023, the price of rice will remain at $0.66, and we predict that it will increase slightly to $0.68 in 2024.
One of the key challenges in the Indonesian rice market is to achieve self-sufficiency in rice production. The country is highly dependent on rice imports, making it vulnerable to fluctuations in international prices and supply disruptions. Addressing issues such as land availability, modernizing farming practices and improving infrastructure are critical to increasing domestic rice production.
The Indonesian provinces that produce the most rice are South Sumatra, West Java, Central Java, East Java, and South Sulawesi. Given Indonesia's large rice consuming population and the risks of being a rice importer when food prices rise, Indonesia has made achieving rice self-sufficiency a top priority. In fact, the country aims to become a rice exporter. According to the publisher, from 2024 to 2033, Indonesia will import more and more rice.
Topics covered:
- Indonesia Rice Industry Overview
- The economic and policy environment of Indonesia's rice industry
- Indonesia Rice Industry Market Size, 2024-2033
- Analysis of the main Indonesia rice production enterprises
- Key drivers and market opportunities for Indonesia's rice industry
- What are the key drivers, challenges and opportunities for Indonesia's rice industry during the forecast period 2024-2033?
- Which companies are the key players in the Indonesia rice industry market and what are their competitive advantages?
- What is the expected revenue of Indonesia rice industry market during the forecast period 2024-2033?
- What are the strategies adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Indonesia rice industry market is expected to dominate the market by 2033?
- What are the main negative factors facing the rice industry in Indonesia?
Table of Contents
Companies Mentioned
- PT. Sanmas
- PT. SEGER AGRO NUSANTARA
- Perum BULOG
- PT Perusahaan Perdagangan Indonesia
- PT Buyung Poetra Sembada Tbk
- PT GIEB Indonesia
- Luqman Hakim Noegroho Putro
- Pt. Kaizen Agro Persada
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
LOADING...
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 60 |
| Published | February 2024 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( Tons | Tons 2.8 Million |
| Forecasted Market Value ( Tons | Tons 3.44 Million |
| Compound Annual Growth Rate | 2.0% |
| Regions Covered | Indonesia |
| No. of Companies Mentioned | 8 |
