T

he government is not planning to import rice, at least for now, as the state logistics agency Bulog is purchasing the crops of local farmers to build stockpiles, according to Trade Minister Rachmat Gobel.

The minister said the importation of rice would be the last resort only after the government sees how much Bulog manages to store.

The government, however, might allow the importation of shallots to anticipate surging demand during the fasting month and the Idul Fitri festivities.

'€œBased on my discussion with the agriculture minister, we agree that the supply will not match the demand for the fasting month, so importation will be an option to maintain price stability,'€ he said on Monday, adding that his office was calculating the quota and would immediately issue import permits.

The ministry'€™s director general for domestic trade, Srie Agustina, likewise said the government would import rice if the harvest failed.

'€œLet'€™s see how much we can produce when it comes to harvest time,'€ Srie said during a press discussion, adding that the government usually imports rice if the increase of production cannot reach its targeted figure of 5 percent.

Last year, the government aimed to increase domestic rice production to 8 percent, but it actually went down by 0.63 percent.

Srie cited data showing that domestic farmers are predicted to produce a total of 7.1 million tons of rice in the next two months: 3.1 million tons in June and 4 million tons in July. Meanwhile, total national demand until July is estimated to reach around 5.5 million tons.

'€œSo, we don'€™t need to export yet as we will even have a surplus of 1.6 million tons. If Bulog can manage to absorb up to 30 percent, then it'€™s enough,'€ she added.

The government previously predicted that domestic farms would be able to produce 73.4 million tons of rice this year '€” 2.8 percent more than last year '€” and it expected the figure would remove the need for imports.

Srie claimed that Indonesia imported less rice throughout last year since Bulog had aimed to stockpile 500,000 tons, but only managed 425,000 tons. However, the figure excluded rice imported for industrial needs, such as for hotels and restaurants.

'€œWe still cannot produce several rice varieties needed by industries,'€ Srie said, referring to the special varieties such as Japan'€™s Japonica and Thailand'€™s Thai Hom Mali.

According to Central Statistics Agency (BPS) data, Indonesia imported 7,912 tons of rice worth US$3.1 million during February 2015, lower than in January when 16,600 tons worth $8.3 million were brought in. The special rice varieties dominated the numbers.

During February, Thailand dominated the imported rice with 1,030 tons worth $615,000, followed by Vietnam with 550 tons worth $219,000.

However, Dwi Andreas Santosa, a professor at the Bogor Institute of Agriculture (IPB), said the government should be careful in deciding whether to import rice as the country'€™s rice stocks have decreased in the last three years.

'€œWe had 7.4 million tons of rice in early 2013, which decreased to 6.5 million tons. Earlier this year, we only had 5.5 million tons,'€ Andreas said, citing data from his institution.

President Joko '€œJokowi'€ Widodo previously pledged that under his watch the government would not import rice to meet this year'€™s domestic demand. He also urged domestic farmers to be more confident in producing rice to maintain self-sufficiency.

To boost agricultural production, Jokowi promised to build irrigation systems and distribute tractors, rice-planting machines, combine harvesters and seeds. (foy)