RICE SELF-SUFFICIENCY IN INDONESIA

2nd ARTF 4-5 June 2013 in Yogyakarta, Indonesia

AGENCY FOR FOOD SECURITY MINISTRY OF AGRICULTURE

Introduction
Rice is the most important commodity in Indonesia, and the major crop for small farms More than 95% of Indonesian people consume rice, and for most, it is the staple food Efforts to increase food availability to promote sustainable food security tend to be more complicated: agricultural land conversion and climate change Getting rice policy right is essential to food security, income and employment growth in rural areas

Conditions of Rice Sector in Indonesia

During the period of 5 years, the production of rice has increased at a growth rate of 3.5%/year Balance of rice availability was surplus Index of self-sufficiency on rice at 127% Indonesia has reserves of 2 million tons of food: price stability and ensure sufficient rice during disasters

Harvested Area, Productivity and Production of Rice 20082013

Harvested Area Years (Ha) 2008 2009 2010 12.327.425 12.883.576 13.253.450 4,51 2,87 Growth of (%) Productivity (Kw/Ha) 48,94 49,99 50,15 2,15 0,32 Growth of (%) Paddy * (000 Ton) 55.922 59.698 61.617 Production Rice** (000 Ton) 35.086 37.454 38.659 6,75 3,22 Growth of (%)

2011
2012 2013 Average

13.203.643
13.443.443 13.466.549 13.096.348

(0,38)
1,82 0,17 2,21

49,80
51,36 51,29 50,33

(0,70)
3,13 (0,14) 1,23

60.958
64.005 64.031 61.569

38.245
40.157 40.173 38.629

(1,1)
5,00 0,04 3,47

Source : Central Agency for Statistics, Indonesia * without seed. feed ** 0.6274 x Paddy

Supply and Demand for Rice

(000 Tons)
2011 722 Particular Beginning Stock 2008 1.573 2009 1.354 2010 1.618 2012 *) 2013 **) 1.249 2.260 Average of last 5 years 1.303 Average of last 3 years 1.196

Production -Paddy Basis

-Milled Basis Import Total Supply Domestic Use Ending Stock

55.922
35.086 285 35.371 31.799 1.354

59.698
37.454 244 37.699 32.195 1.618

61.617
38.659 683 39.342 33.056 722

60.958
38.245 2.739 40.984 33.549 1.249

64.005
40.157 1.165 41.322 32.971 2.260

64.031
40.173 40.173 32.898

60.440
37.920 1.023 38.943 32.714 1.440.7

62.193
39.020 1.529 40.549 33.192 1.410

Data Source : Production, Exports and Imports from Statistic Indonesia, Stocks from Bulog *) Preliminary figures **) Estimated: Paddy without seed, feed; Milled Basis = 0,627 x paddy basis

To maintain price stability and ensure sufficient rice supply during disasters, Indonesia has reserves of 2 million tons. National rice reserves not only from local production but also imported from Thailand, Vietnam and Cambodia.

Production, Consumption, and Imports

45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 0.2 0.7 2.7 0.4

1.2
0.0

0.3

Million tons

35.1

31.8

37.5

32.2

38.7

33.1

38.2

33.5

40.2 33.0

40.2 32.9

Suply Use Suply Use Suply Use Suply Use Suply Use Suply Use
2008 2009
Net Production

2010
Impor

2011
Domestic use

2012
Export

2013

The total rice supply is sufficient to meet domestic use and exports.

Net Production, Consumption, and Surplus/Deficit

Year Net Production (Ton) 33.917.197 36.207.151 37.371.255 36.971.233 38.819.424 38.835.009 37.020.211 Net Import (Ton) Domestic Surplus/Deficit Population Consumpt (Ton) (000 ) (Ton) 31.799.017 2.402.726 228.523 32.195.066 4.254.207 231.370 33.067.791 4.986.489 237.641 33.054.018 6.654.895 241.182 33.047.180 6.936.244 244.776 32.897.922 5.937.087 247.390 32.632.614 5.046.912 238.480 Per Capita Consumpt (Kg/year) 139,15 139,15 139,15 137,05 135,01 132,98 137,08

2008 2009 2010 2011 2012 2013 Average

284.546 242.122 683.024 2.737.681 1.164.000 1.022.275

Data Source: Production, Exports and Imports from Statistic Indonesia, Stocks from Bulog Notes: Net production: Rice-Milled without non food industrial Net Imports = Imports Exports Balance = Net Production + Net Imports Domestic Consumption

Demand for rice in 2013 is projected at 32.9 million tons. Surplus of production in 2013 at 5.9 million tons.

Net Production, Domestic Use and Surplus/Deficit

45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 -

2008 Net Production (Ton) 33,917,1 Domestic Consumpt 31,799,0 (Ton) Surplus/Deficit (Ton) 2,402,72

Ton

2009 36,207,1 32,195,0 4,254,20

2010 37,371,2 33,067,7 4,986,48

2011 36,971,2 33,054,0 6,654,89

2012 38,819,4 33,047,1 6,936,24

2013 38,835,0 32,897,9 5,937,08

Data Source: Production, Exports and Imports from Statistic Indonesia, Stocks from Bulog Notes: Net production: Rice-Milled without non food industrial Net Imports = Imports Exports Balance = Net Production + Net Imports Domestic Consumption

Balance of rice availability was surplus in each year.

Domestic and Parity Price of Rice (Thai 5%)

12,000 11,000 10,000 9,000

Price (Rp/Kg)

8,000 7,000 6,000 5,000 4,000 3,000 2,000 Domestic Thai 5%

Data Source : BPS and World Bank, Parity Price = (Border Price + PPh) x 1,15

During the period 2008 to 2013 (until May 2013), rice price has increased 11.2% per year

Jan Maret Mei Juli Sept Nov Jan Maret Mei Juli Sept Nov Jan Maret Mei Juli Sept Nov Jan Maret Mei Juli Sept Nov Jan Maret Mei Juli Sept Nov Jan Maret Mei

2008

2009

2010

2011

2012

2013

Prospects of Rice Production in 2013

Targets: 72.06 million tons Strategy:
Rice planting in at least 14.59 million hectares Harvested area of at least 14.08 million hectares Productivity of 5.12 ton/ha

Policies of Ministry of Agriculture

Achieving self-sufficiency:
Targets 2014: Paddy 75.70 million tons or rice surplus of 10 million tons

Strategies undertaken:
Increased productivity by implementing site-specific farming technologies and reduce the potential for yield loss Rehabilitation and development of infrastructure Expansion of agricultural lands and land management Decrease in rice consumption in the context of diversification and food security Improving management with policy and regulatory support

THANK YOU