Indonesia’s state-owned procurement agency Badan Urusan Logstik (BULOG) announced plans to import 500,000 tons of rice after authorization from the Government of Indonesia. Indonesia seeks to replenish its depleted rice stocks after difficulties in domestic procurement during the recent harvest. The move marks the first time BULOG has imported a significant quantity of rice since 2018.

Indonesia rice imports are forecast at 750,000 tons for 2022 and 2023. Year-to-date rice imports are approximately 450,000 tons. BULOG aims to import an additional 500,000 tons by the end of 2022; however, with limited time remaining in 2022, a portion will likely occur during early 2023.

 Indonesia has standing Memoranda of Understanding (MOU) with Thailand and Vietnam for emergency procurements of up to 1 million tons from each country at current prices. Historically, these countries were the primary suppliers of rice to Indonesia, particularly in 2018. However, since 2021, India has come to dominate global rice trade and sellers in India currently offer competitive prices. During January through September 2022, Indonesia imported rice from India, Pakistan, Thailand, and Vietnam.

Indonesia is a major producer of rice and imports are generally a small portion of total consumption. Typically, BULOG seeks to procure additional rice from domestic farmers to replenish stocks and to ensure stable domestic rice prices. This sudden demand for imports at the end of the year is a factor causing an uptick in global trade. USDA