In a significant shift in national food policy, Indonesia is preparing to export 2,000 tons of non-premium rice per month to Malaysia, leveraging its record-high rice stockpile of nearly 4 million tons. The move signals Indonesia’s evolving role from a major rice importer to an emerging exporter in the global market.
The plan, currently in the administrative finalization stage, follows discussions between Indonesian and Malaysian officials and aligns with President Prabowo Subianto’s broader food security agenda.
“Talks have been held with Malaysian counterparts, and we’ve met with potential buyers,” said Deputy Minister of Agriculture Sudaryono during a visit to Karawang, West Java. “Once the President gives the go-ahead, we’re ready to proceed.”
The initial agreement includes a monthly shipment volume of around 2,000 tons, with the potential to scale based on bilateral needs. Malaysia, which meets only 40–50 per cent of its rice demand through domestic production, is currently grappling with high retail rice prices — making Indonesian supplies a timely intervention.
Indonesia’s rice export readiness follows a policy decision to halt rice imports, a move that has significantly impacted global markets. According to Sudaryono, Indonesia’s absence from the import arena has contributed to a global rice oversupply and declining international prices.
“As one of the world’s largest rice importers, our withdrawal has created a ripple effect — increasing global supply and putting downward pressure on prices,” he noted.
Despite the global price dip, domestic rice prices in Indonesia have remained stable, underpinned by sustained demand and strategic stock management by the state logistics agency, Bulog.
Minister of Agriculture Andi Amran Sulaiman emphasized that Indonesia’s rice reserves are now positioned not only to safeguard national food security and social welfare programs, but also to support regional trade.
“Malaysia has shown strong interest in sourcing from us, given the price pressures it faces at home,” said Minister Amran. “With nearly 4 million tons in reserve, we’re well-positioned to meet both domestic needs and explore export opportunities.”
The rice export initiative is expected to boost bilateral agri-trade relations and could serve as a template for future exports to other ASEAN markets.
