Indonesia Exports 200,000 Tons of Rice to Malaysia Worth Rp3.39 Trillion

JAKARTA - Indonesia through Perum Bulog will export 200,000 tons of rice to Malaysia with a value of IDR 3.39 trillion.

The plan is for the rice to be sent to neighboring countries in stages of 1,000 tons starting this week.

The agreement was marked by the signing of a Memorandum of Understanding (MoU) between Perum Bulog and Padi and Beras Borneo Sdn. Bhd., a Malaysian company, which was witnessed directly by Minister of Agriculture Andi Amran Sulaiman in Jakarta, Friday, August 14.

Minister of Agriculture Andi Amran Sulaiman said the agreement was reached after the Indonesian government communicated with the Malaysian Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu.

Amran explained that the government and the Malaysian party had agreed on the price of rice at Rp17,000 per kilogram (kg) or equivalent to 3.9 Malaysian ringgit. The exported rice is premium rice with a 5 percent breakage rate.

"If this export can be shipped this week, 1,000 tons will be gradually shipped because Sarawak needs 200,000 tons. And (the need) for one Malaysia is 1.5 to 1.7 million tons per year," he said, quoted Saturday, August 15.

Amran explained that the signing of the rice export MoU between Indonesia and Malaysia was a proud momentum because it took place ahead of the 81st Independence Day of the Republic of Indonesia.

Currently, the Government Rice Reserve (CBP) managed by BULOG reaches around 5.2 million tons. The strength of the stock is one of the indicators of the increasingly strong national distribution conditions, so that Indonesia has the capacity to maintain the community's food needs while developing export opportunities for commercial premium rice.

"This is a very beautiful offering ahead of Indonesian Independence Day. Previously, we always talked about how to meet the domestic food needs. Today, when our stocks are strong at around 5.2 million tons, we start talking about exports. This shows that Indonesia is getting stronger and more confident," said Amran.

According to Amran, the strength of the government's rice reserves is an important foundation in maintaining national food security. With a safe stock condition, Indonesia has room to develop rice trade to international markets without neglecting the needs of the community in the country.

"Exports do not mean that we reduce our attention to the needs of the people. In fact, exports are carried out because our conditions are safe. The main priority remains the needs of the country. When the needs of the country are safe and the stock is strong, we can start to see market opportunities abroad," he said.

Meanwhile, the President Director of Perum Bulog Ahmad Rizal Ramdhani said the signing of the MoU with Padi dan Beras Borneo Sdn. Bhd. is an important momentum for Bulog in strengthening the commercial role as well as expanding the Indonesian premium rice market.

"Ahead of the 81st year of independence, we show that with the hard work of farmers, government support, and good food management, Indonesia has the strength of stocks that allow us to start penetrating international markets," said Rizal.

Rizal emphasized that with a CBP stock of around 5.2 million tons, Bulog has a strong foundation in carrying out the mandate of food security while developing commercial businesses.

"Bulog's priority is still to maintain national food security. However, when stocks are strong and domestic needs are safe, we have the opportunity to develop commercial businesses, including the export of premium rice. This is a form of confidence that Indonesia is not only able to meet its own needs, but also has products that can be marketed to other countries," he said.