Rice shipments from Vietnam have started arriving in Indonesia, the head of the country's food procurement agency told Reuters on Wednesday. Indonesia reached tentative agreements to import 500,000 tonnes of rice from Thailand and 1-1.5 million tonnes from Vietnam in recent weeks, after dry weather crimped domestic rice harvests.
Rice imports are a contentious issue in the country where President Joko Widodo is faced with fast-rising food prices but is also pursuing self-sufficiency in various foods to protect farmers. Government officials have rejected previous calls to import rice this year, despite the onset of the El nino weather pattern.
"Yes," said Bulog CEO Djarot Kusumayakti when asked whether rice shipments from Vietnam had now arrived in Indonesia. Kusumayakti was unable to give details on volumes, but added that Indonesia was yet to sign the deal to import 500,000 tonnes from Thailand. Earlier on Wednesday, various local media reported that rice shipments had arrived in Indonesia, quoting Vice President Jusuf Kalla. He also did not give details on volumes or supplying countries. Bulog is the dominant rice buyer in Indonesia, tasked with maintaining annual stocks of 1.5-2 million tonnes. Analysts have forecast that Indonesia will import 1.6 million tonnes of the staple grain this year.