Increased Rice Production Positively Impacts the Warehousing Sector

The increase in domestic rice production is positively impacting the warehousing sector, particularly those with food-grade specifications.

“Regarding rice, the impact is certainly an increase in demand for warehousing with food-grade specifications. This is because there are warehouses that must have food-grade specifications,” said Director of Knight Frank Indonesia, Sindiani Surya Adinata, during an online discussion in Jakarta, Thursday.

She added that there are warehouses with various specifications offered in the market.

“We are responding positively to the increase in rice barns,” she said.

According to her, this is very important considering that Indonesia’s rice reserves could reach 6 million tons in the next three months, and this exceeds the capacity of Bulog’s warehouses.

She will ensure that the target of absorbing four million tons of government rice reserves (CBP) by 2026 can be achieved through cross-institutional collaboration with Perum Bulog and the National Food Agency.

Amran said that he had held a 2026 Rice Procurement Meeting with Bulog, the National Food Agency (Bapanas) and the ranks of the Ministry of Agriculture (Kementan) to agree on the target of absorbing rice equivalent to 4 million tons throughout 2026.

He assessed that if the target of four million tons is achieved, it has the potential to record a new history for Indonesia’s food security, along with an increase in planted area in 2026 of around 500,000 hectares compared to the previous year.

The increase in planted area is believed to encourage national rice production, as long as there are no major natural disasters or significant disruptions that can hinder the planting and harvesting process of farmers.

Amran said he was optimistic that the target would be achieved, while praising the performance of the Bulog’s board of directors, which he considered solid and capable of carrying out the strategic mandate of maintaining government rice reserves.