Jakarta \u2014 Rice export prices remain above USD 1,000 per tonne, while\nThailand and Cambodia are in the USD 600s to USD 500s per tonne. This\ncreates a substantial price gap, economists say.<\/p>\n
Jakarta (ANTARA) \u2014 An economist from the Center of Reform on\nEconomics (CORE) Indonesia says Indonesia\u2019s prospects for expanding rice\nexports remain open, but require improvements in productivity and\nproduction efficiency to compete on the world market.<\/p>\n
Executive Director of CORE Mohammad Faisal said future rice export\nplans need to be calculated more carefully, taking into account domestic\nproduction conditions and global market dynamics.<\/p>\n
\u201cIf this (expanding rice exports) can be done, of course it\u2019s good,\nbut in my view the government needs to recalculate the export plan,\nbecause there are several factors to consider,\u201d he told ANTARA in\nJakarta on Saturday.<\/p>\n
He explained that rice exports, in principle, can be undertaken when\ndomestic supply is adequate or when self-sufficiency is achieved.<\/p>\n
However Faisal argued that price competitiveness is one of the\nfactors that needs attention because Indonesia faces competition from\nlarge exporting countries such as Thailand and Cambodia.<\/p>\n
\u201cOur rice export price is still above USD 1,000 per tonne, while\nThailand and Cambodia are in the USD 600s and 500s per tonne. As a\nresult, there is quite a wide price gap,\u201d he said.<\/p>\n
With these conditions, he said Indonesian rice exports would be hard\nto compete if conducted through a market mechanism that relies on price\ncompetition in the global market.<\/p>\n
\u201cUnless it is targeted, for example exported to meet the needs of\nIndonesian pilgrims alone. In this context, it would mean a special\ncollaboration with the Government of Saudi Arabia,\u201d he added.<\/p>\n
The government, through state distributor Perum Bulog, previously\nexported rice to meet the needs of Indonesian haj pilgrims in Saudi\nArabia. The exports totalled around 2,280 tonnes and were shipped in two\nstages from 28 February 2026 as part of food logistics support for\nIndonesian pilgrims in the Holy Land.<\/p>\n
The government also aims to develop Indonesia\u2019s rice market in Saudi\nArabia through modern retail networks after the haj rice exports.<\/p>\n
CORE researcher Eliza Mardian assessed that Indonesia\u2019s rice exports\nto Saudi Arabia could be positioned as a community-based captive\nmarket.<\/p>\n
\u201cIn fact, exports of rice for haj pilgrims in Saudi Arabia are a\ncaptive market export based on diaspora or community, not purely\ncommercial exports,\u201d Eliza said.<\/p>\n
She explained that demand for the rice is more influenced by taste\nand texture preferences among Indonesian pilgrims than price\ncompetitiveness in the global market.<\/p>\n
\u201cTo become a major rice exporter like Thailand and Vietnam, we must\nmeet structural prerequisites, including a stable production surplus,\u201d\nshe said.<\/p>\n
To achieve this, she said, the agricultural sector must continue to\nraise production efficiency through modernisation and mechanisation to\nbe price-competitive in the global market.<\/p>\n
Additionally, product quality must be improved through food safety\ncertification and the implementation of good cultivation practices to\nmeet export-market standards.<\/p>\n
According to data from the Central Statistics Agency (BPS), national\nrice production in 2025 stood at around 34.69 million tonnes, up about\n13.29 percent from the previous year from around 60.21 million tonnes of\ndry-milled paddy with a harvested area of around 11.32 million\nhectares.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/core-productivity-and-efficiency-key-to-expanding-indonesias-rice-exports-1772888247", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }