Description
Indonesia Rice Industry
Rice production in Indonesia is an important part of the national economy. Indonesia is the third largest rice producer in the world. It is also a world-renowned net importer of rice. Although Indonesia is a major rice producer, it is also one of the world’s largest per capita rice consumers. Indonesians consume approximately 140 kilograms of rice per person per year. Coupled with population growth and a lack of high-tech agriculture, the rice produced in the country cannot meet the needs of the local population.
According to CRI, Indonesia’s rice production in 2022 was about 35.05 million tons, and domestic consumption was 35.98 million tons. In 2023, rice production was 34.33 million tons, which still could not meet the domestic demand for rice in Indonesia. According to CRI forecast, due to the extreme hot weather and slow imports, rice stocks in Indonesia will continue to decline.
Indonesia is a net importer of rice, meaning it buys more rice from other countries than it sells. The country’s reliance on imported rice is expected to increase.
The Indonesian government has said that the imports are to meet domestic demand in the event of a low farmer’s harvest. There is also a need to ensure stockpile security.
In 2023, Indonesia approved a rice import quota of 3.8 million tons, but only 2.74 million tons were actually imported; this included more than 1 million tons of rice from Vietnam. At the beginning of 2024, the Indonesian government also approved an import quota of 2 million tons of rice for 2024, plus 1.06 million tons of unused quota for 2023. CRI expects that in 2024, Indonesia will need to purchase 3.06 million tons of rice.
According to statistics, at the beginning of February 2024, the average export price of 5% broken rice from Thailand was the highest in the world at US$653 per ton, from Vietnam at US$639 per ton, and from Pakistan at US$637 per ton.
Indonesia’s target for 2024 is to produce 55.42 million tons of domestically produced rice, a figure higher than the 2023 target of 54.5 million tons. Nonetheless, the Indonesian government will still import rice in 2024, with an estimated import volume of more than 3 million tons.
The price of rice in Indonesia is also rising as Indonesian rice stocks are declining. In 2024, the approximate wholesale price range for Indonesian rice is between $0.56 and $1.47 per kilogram, or between $0.25 and $0.66 per pound. The import price per kilogram of rice into Indonesia has been quite volatile over the past five years. In 2017, the price was USD 0.92, followed by a sharp decline to USD 0.46 in 2018. This was followed by a significant increase to USD 2.45 in 2019, and a further increase to USD 2.76 in 2020. The price then drops to USD 0.80 in 2021, before settling at USD 0.66 in 2022. In 2023, the price of rice will remain at $0.66, and we predict that it will increase slightly to $0.68 in 2024.
One of the key challenges in the Indonesian rice market is to achieve self-sufficiency in rice production. The country is highly dependent on rice imports, making it vulnerable to fluctuations in international prices and supply disruptions. Addressing issues such as land availability, modernizing farming practices and improving infrastructure are critical to increasing domestic rice production.
The Indonesian provinces that produce the most rice are South Sumatra, West Java, Central Java, East Java, and South Sulawesi. Given Indonesia’s large rice consuming population and the risks of being a rice importer when food prices rise, Indonesia has made achieving rice self-sufficiency a top priority. In fact, the country aims to become a rice exporter. According to CRI, from 2024 to 2033, Indonesia will import more and more rice.
Topics covered:
- Indonesia Rice Industry Overview
- The economic and policy environment of Indonesia’s rice industry
- Indonesia Rice Industry Market Size, 2024-2033
- Analysis of the main Indonesia rice production enterprises
- Key drivers and market opportunities for Indonesia’s rice industry
- What are the key drivers, challenges and opportunities for Indonesia’s rice industry during the forecast period 2024-2033?
- Which companies are the key players in the Indonesia rice industry market and what are their competitive advantages?
- What is the expected revenue of Indonesia rice industry market during the forecast period 2024-2033?
- What are the strategies adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Indonesia rice industry market is expected to dominate the market by 2033?
- What are the main negative factors facing the rice industry in Indonesia?
Table of Contents
1 Indonesia at a Glance
1.1 Geographical situation
1.2 Indonesia’s Demographic Structure
1.3 Indonesia’s economic situation
1.4 Minimum Wage in Indonesia, 2013-2024
1.5 Impact of COVID-19 on the Rice Industry in Indonesia
2 Overview of the rice industry in Indonesia
2.1 History of the Rice Industry in Indonesia
2.2 FDI in Rice Industry in Indonesia
2.3 Policy environment of the rice industry in Indonesia
3 Supply and Demand Situation of Rice Industry in Indonesia
3.1 Supply Situation of Rice Industry in Indonesia
3.2 Demand for Rice in Indonesia
3.3 Indonesia Rice Industry Segment Analysis
3.3.1 Direct consumption
3.3.2 Use as raw material
4 Import and export status of the rice industry in Indonesia
4.1 Import status of the Indonesian rice industry
4.1.1 Import Volume and Value of Indonesia Rice Industry
4.1.2 Major Import Sources of Indonesia’s Rice Industry
4.2 Export status of the Indonesian rice industry
4.2.1 Indonesia Rice Industry Export Volume and Value
4.2.2 Major Export Destinations of Indonesia’s Rice Industry
5 Price and cost analysis of the rice industry in Indonesia
5.1 Cost Analysis of Rice Industry in Indonesia
5.1.1 Labor costs
5.1.2 Cost of agricultural production materials
5.1.3 Other costs
5.2 Indonesia Rice Price Analysis
6 Competition in the Indonesian rice industry market
6.1 Barriers to Entry in Indonesia’s Rice Industry
6.1.1 Brand Barriers
6.1.2 Quality barriers
6.1.3 Capital barriers
6.2 Competitive structure of the rice industry in Indonesia
6.2.1 Bargaining power of rice industry suppliers
6.2.2 Consumer bargaining power
6.2.3 Competition in the Indonesian Rice Industry
6.2.4 Potential entrants in the rice industry
6.2.5 Substitutes in the rice industry
7 Analysis of Major Rice Companies in Indonesia
7.1 PT. Sanmas
7.1.1 PT. Sanmas Corporate Profile
7.1.2 PT. Sanmas Operations
7.2 PT. SEGER AGRO NUSANTARA
7.2.1 PT. SEGER AGRO NUSANTARA Corporate Profile
7.2.2 PT. SEGER AGRO NUSANTARA operations
7.3 Perum BULOG
7.3.1 Perum BULOG Corporate Profile
7.3.2 Perum BULOG operational status
7.4 PT Perusahaan Perdagangan Indonesia
7.4.1 PT Perusahaan Perdagangan Indonesia Corporate Profile
7.4.2 PT Perusahaan Perdagangan Indonesia Operation Status
7.5 PT Buyung Poetra Sembada Tbk
7.5.1 PT Buyung Poetra Sembada Tbk Company Profile
7.5.2 PT Buyung Poetra Sembada Tbk operational status
7.6 PT GIEB Indonesia
7.6.1 PT GIEB Indonesia Corporate Profile
7.6.2 PT GIEB Indonesia Operations
7.7 Luqman Hakim Noegroho Putro
7.7.1 Luqman Hakim Noegroho Putro Corporate Profile
7.7.2 Luqman Hakim Noegroho Putro Operation Status
7.8 Pt. Kaizen Agro Persada
7.8.1 Pt. Kaizen Agro Persada corporate profile
7.8.2 Pt. Kaizen Agro Persada operations
8 Indonesia Rice Industry Outlook 2024-2033
8.1 Analysis of Factors for the Development of the Rice Industry in Indonesia
8.1.1 Drivers and Development Opportunities for Indonesia’s Rice Industry
8.1.2 Threats and Challenges Facing the Rice Industry in Indonesia
8.2 Indonesia Rice Industry Supply Forecast
8.3 Market Demand Forecast for Indonesia Rice Industry
8.4 Export and Import Forecast on Indonesia’s Rice Industry
LIST OF CHARTS
Chart Total population of Indonesia 2013-2023
Chart GDP per capita in Indonesia 2013-2023
Chart Rice Industry Related Policies Issued by the Indonesia Government 2018-2024
Chart Market size of rice industry in Indonesia
Chart Domestic consumption in the rice industry in Indonesia 2018-2023
Chart 2019-2023 Indonesia rice industry imports
Chart 2019-2023 Indonesia rice industry import amount
Chart 2019-2023 Indonesia rice industry importers and import value
Chart 2019-2023 Export volume of Indonesia’s rice industry
Chart 2019-2023 Export value of Indonesia’s rice industry
Chart Exporting countries and export value of Indonesia’s rice industry in 2019-2023
Chart 2024-2033 Indonesia rice industry production forecast
Chart 2024-2033 Indonesia Rice Market Size Forecast
Chart 2024-2033 Indonesia rice industry import forecast
Chart 2024-2033 Export forecast for Indonesia’s rice industry
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