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Indonesia optimistic about rice self-sufficiency

Source
Indonesian Observer - October 17, 2000

Jakarta – Indonesia should again be able to achieve rice self-sufficiency, as it did in 1985, Agriculture and Forestry Minister Bungaran Saragih said here yesterday.

Data from the Agriculture and Forestry Ministry shows that the countrys annual rice consumption is now 30 million tons, while world market supply has only reached 20 million tons.

Indonesia could thus not rely on the world market to meet its domestic demand for rice, the minister said during the commemoration of the 20th World Food Day at the State Palace here on Monday. The ministers speech was read out by Health and Peoples Welfare Minister Ahmad Sujudi.

The worlds fourth most populous nation expected unhusked rice production to rise to 53-54 million tons in 2001, from an estimated 50.7 million in 2000 because of continued good weather.

Director-general for Food Crop Production, Syarifuddin Karama, said this would be enough to meet domestic consumption, although the government could not prevent imports. Officials had previously forecast production to rise to about 52 million tons in 2001, from 51 million in 2000.

The good climate is expected to continue next year, he told reporters. This is enough for domestic consumption and there is no need to import.

Karama said the government was looking at ways to protect the domestic rice industry from cheap imports, including a plan to allow imports. We are still working on that, he said.

Increased plantings are also contributing to the rise in production. Officials said earlier this year the area planted with rice had increased to 11.6 million hectares in 2000 from 11.4 million in 1999.

Karama said the National Logistics Agency (Bulog) had about 1.7 million tons of white rice in stock, enough to last until January. He gave no further details. Indonesia produced 49.1 million tons of rice in 1999.

Meanwhile President Abdurrahman Wahid on the occasion of the 20th World Food Day said the government will continue to provide rice subsidies until 2002, based on the agreement with the International Monetary Fund (IMF).

He also said the government has decided to adjust coffee exports according to the policy designed by the Indonesian Coffee Producers Association. Accordingly Wahid called on coffee farmers and exporters to understand the governments decision to reduce exports by 20% due to a drop in the world market price.

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