Zulhas Reveals Why Indonesian Rice is Expensive, While Vietnam Costs Only Rp3,800

The Coordinating Minister for Food Affairs, Zulkifli Hasan (Zulhas), has revealed a major issue making Indonesian food uncompetitive. One of the primary concerns is the cost of rice production, which is significantly higher than in neighbouring countries like Vietnam and Thailand.

“Our neighbouring countries, Thailand and Vietnam, only spend Rp3,800 to produce 1 kilogram of rice. For us, 1 kilogram of rice requires a cost of Rp12,000. We are lagging far behind,” said Zulhas during the book launch of ‘Indonesian Food: From Healthy Plates to Superior Humans’ at the Jakarta International Convention Centre (JICC), Jakarta, on Friday (4/9/202_).

According to Zulhas, these high production costs do not exist in isolation. The issue relates to agricultural technology, the use of new varieties, and how paddy fields are managed. These factors mean that Indonesia’s agricultural productivity remains behind.

When the yields obtained from land and production inputs are not optimal, the costs incurred to produce every kilogram of food become larger. A similar problem occurs with the sugarcane commodity.

“If we plant sugarcane in Lumajang, the cost is Rp14,000 per 1 kg, whereas in India and Brazil, the cost is approximately less than Rp4,000 for 1 kg. If this continues, we will constantly fall behind,” explained Zulhas.

Another issue is the dependency on seeds from abroad. Zulhas stated that almost all food crop seeds in Indonesia still rely on imports, and some can only be used for a single planting season.

This condition is considered a serious problem because Indonesia actually possesses the capacity to develop its own varieties. He pointed to the existence of universities such as ITB and IPB, which possess research capabilities and human resources.

“We have many varieties, and we have ITB, we have IPB, we have great campuses. However, this is if we still do not realise how important food is,” he said.

The issue of unaffordable food and low consumption quality can lead to problems of poverty and malnutrition. Zulhas cited his experience visiting Maumere, East Nusa Tenggara (NTT), where he found primary school children with short and small physical conditions, which he believes is related to dietary patterns.

“Thailand’s per capita income, if I am not mistaken, is already US$8,000. Ours is still below US$5,000. We are poorer, yet we have to pay more,” he explained.