Indonesia Rice Imports 2017

Indonesia, the world’s third-largest consumer and producer of rice, is forecast to import only
500,000 tons in 2017, a 50-percent reduction from 2016 levels due to an anticipated rebound in
production. Indonesian production meets most of its domestic demand, with imports only
accounting for shortfalls and to source fragrant varieties. Although imports constitute a small
amount of overall supplies, Indonesia’s relative absence in the thinly-traded rice market has
significant impacts on its key suppliers. Forecasted 2017 imports are expected at the lowest level
since 2009, when the country brought in a meager 250,000 tons.

Thailand and Vietnam are the primary suppliers of rice to Indonesia. In recent years, Vietnam
has supplied the majority, but with affordable old crop supplies, Thailand has gained market
share. With ample supplies in both countries, there is likely to be stiff competition to fulfill the
Indonesian market
.
Although not a traditional exporter, Indonesia is now setting ambitious export targets given its
sufficient domestic supplies. Despite these efforts to export, Indonesia is expected to remain a
net importer.