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39881
Sat, 01/10/2009 - 08:50
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News Focus: RI'S FIRST RICE EXPORT GOES TO JAPAN NEXT MONTH

By Eliswan Azly
Jakarta, Jan 9 (ANTARA) - After recording a rice overproduction of 2.7 million tons in 2008, Indonesia decided to export its super quality rice to some countries.

It is for this purpose that the National Logistics Agency (Bulog) has been assigned by the government to handle this with Japan as the first country of destination as the country is known to have a high consumption of super quality rice.
Bulog Director Mustafa Abubakar on Thursday said Japanese importers had conducted a feasibility study of Indonesia's capability in meeting its regular orders for the super quality rice requested by Japanese consumers.
"In order to meet that country's demand, the rice exports will be conducted in February and March this year," he said.
According to him, the rice to be exported to Japan will be of the best quality containing broken rice of only 5 to 10 percent,like Pandan wangi, Cianjur, Padi Mulia, Aromatic rice and others.
As to the volume of the rice exports to Japan, he further said that they reached 10,000 to 20,000 tons a month or 120,000 to 140,000 tons a year, so that the exports will never disrupt Indonesia's capability to meet domestic demand for the staple in relation to national production currently reaching 35 million tons a year.
The price of rice of super quality in Japan may range from USD 1 to USD 2 per kg, so that the consumers are an exclusive layer of the society.
"On Wednesday (Jan 7), we signed an agreement with two importers and a local company in East Java to arrange the issuance of a permit from the Trade Ministry for the rice exports," he said.
In addition to Japan, accordinig to Mustafa, some other ASEAN countries had also requested for the Indonesian rice, but of medium quality in 2009. "They are the Philippines, Malaysia, Timor Leste, and Brunei Darussalam, but we are still waiting for adequate rice supply to meet local consumption which can be calculated from June to September 2009."
"The four countries have tendered their formal and informal orders through their respective consuls in Jakarta for the import of the Indonesian," he said, adding Indonesia planned to export one to 1.5 million tons of rice of medium quuality.
However, Mustafa admitted that he was not in a position to decide on the rice export plan. He could only make a proposal, because the relevant authorities have left the matter to the Trade Ministry on the condition that Indonesia reached a rice overproduction of three million tons.
According to him, if the production of unhusked rice in 2009 reaches the projected 63.5 million tons, it is predicted that there will be a big overproduction, paving the way for rice exports to the Philippines, Malaysia, Timor Leste and Brunei Darussalam.
In the meantime, the Central Bureau of Statistics (BPS) last year projected Indonesia's dry unhusked rice production at 59.88 million tons, up by 2.72 million tons due to an expansion of the land of the harvest by 237,610 hectares and an increase in productivity of the roce fields by 130 kg/hectare.
In 2007, Indonesia`s dry unhusked rice output rose by 4.98 percent or 2.70 million tons from 2006, enabling the country to enjoy a surplus of 1.5 million tons, while the country could only enjoy a surplus of about 50,000 tons. But in 2009 the surplus is expected to reach over three million tons.
Earlier, Director General of Food Crops Sutarto Alimoeso expressed optimism over Indonesia's ability to record a surplus of over 2.7 million tons in 2009 following a BPS prediction of an increase in the country's rice output in 2009.
Sutarto said he would ask the National Land Agency (BPN) to allow the rice growers to use idle land. "We have millions of hectares of idle land. However, our farmers cannot make use of them," he said.
Although Indonesia has become self-sufficient in rice and had a rice overproduction in 2008, the country is still considering rice exports on a regular basis.
Agriculture Minister Anton Apriyantono said last year Indonesia had no intention to export the commodity in large quantities, although many countries had asked Indonesia for the staple.
But, the minister said the government would not impose a ban on rice exports, but merely put a limit to volume and type of the rice for export.
The rice surplus will be handed over to the National Logistics Agency for storage.
The ministry had issued a regulation that only Bulog is authorized to export rice. The board can also import the staple if its stock has started declining from 1 million tons.
It said exporters are only allowed to export sticky rice after obtaining an approval from the foreign trade director general at the trade ministry.
The ministry said the regulation was needed to stabilize rice prices in the domestic market and protect the interest of the public, as rice is a staple food in Indonesia, with a population of over 230 million.
As the result of the rice price hikes in the global market, Indonesia`s rice exports had become more competitive, but the ministry said that it did not mean the government would hastily decide to allow the export of the commodity.
Meanwhile, Trade Minister Mari Elka Pangestu said the government was drafting a regulation on the export of a number of foodstuffs which are in a surplus, including rice. Under the regulation, rice of a certain quality could be exported while the government is committed to securing stocks and stabilizing prices in the domestic market.
"The government is committed to keeping the price of the staple at Rp4,750 to Rp6,000 per kg so that it will not burden the people," Pangestu said.
"The price of rice in the world market is relatively high but as long as the domestic price is maintained at a stable level and stock is adequate, the situation will remain secure," Mari added.
The increase in foodstuff prices was triggered by increasing demands in the world market, while supply was limited. Moreover, the rice exporting countries like Vietnam had imposed a tax on rice exports to secure their own need for the staple.

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