Indonesia continues its rice import from Vietnam

REPUBLIKA.CO.ID, JAKARTA - Indonesia continues its rice import from Vietnam to extend rice procurement from 1 January 2013 to 31 December 2017 at around 1.5 million tonnes. Minister of Trade Gita Wirjawan, after signing the memorandum of understanding (MoU) to seal the deal with Vietnam, said the agreement was a part of food security programs.

Earlier, Indonesia made similar MoU with Cambodia and Thailand. The agreement was made to decrease Indonesian dependent of rice supply from a sole certain country only. "If we need to import, Indonesia can import rice from any country which offers the best quality with affordable price," Wirjawan said.

He explained that import was the last option to maintain the stability of rice price. Minister hopes low-income society can fulfill their needs for rice without inflicting Indonesian farmers.

Director General of International Trade Cooperation at the Ministry of Trade, Iman Pambagyo, said the import would be conducted only if the stock decreased. "Indonesian Food Security Board will discuss and decide the import," he said.

The International Rice Research Institute says Indonesia's rice consumption is still rising, and at more than 139 kg (306 lb) per person a year it is among the highest in the world.

MoU on Rice Trade between Indonesia and Vietnam has been maintained under government to government agreement since 2005. The State Logistics Agency (Bulog), recommended by Food Security Board and permitted by Ministry of Trade, buy rice from Vina Food Vietnam.

The agreement was first extended in 25 April 2009 when Vietnam must provide up to 1 million tonnes rice for Indonesia. The amount was increased to 1.5 million tonnes in 16 November 2011 after Indonesia failed to import rice from Thailand due to its high price.