II THE INDONESIAN RICE MARKET
2.1 Production, Consumption, and Import
Indonesia is the 3
rd
biggest rice producer country in the world which contributes about 7,85 of the world rice production, but in the same time as the
6
th
biggest rice importer which imported 1,25 MT in 20112012 or about 3,41 of total world production FAS USDA 2012. Indonesian rice production is lower
than its consumption. This condition makes Indonesia as a net importer of rice in world market, after experienced successful green revolution and self-sufficiency
achievement in 1980s. The rice production growth is hindered by the lack of production land due to
land conversion of arable land to non-agricultural uses such as industry and settlement. Especially in Java as the most fertile land as well as the highest land
value compared to other major islands. The land rent for industry and settlement purposes are about 500 and 622 times to land rent for agricultural purposes,
respectively Nasoetion Winoto 1996 in Kusumaningrum 2008. Therefore many farmers sell their land or convert their land for building industry or
settlement.
Figure 2 Comparison of rice production and consumption in Indonesia
Source: FAS USDA 2012
0,000 5,000
10,000 15,000
20,000 25,000
30,000 35,000
40,000 45,000
milled production TMT consumption TMT
Table 1 shows that rice production has constant trend for 2000-2012 period. The rice production in 2012 is 32,17 higher than in 2000. Even though the rice
production increase, the consumption of rice increase higher. Therefore there is a gap between rice production and rice consumption. This gap is compensated by
importing rice from world market. Indonesia has been importing rice from Thailand and Vietnam since the 1998 crisis. The rice import of Indonesia since
2000 to 2012 has a declining trend. Even in the period of crisis in 2007-2010, Indonesia imported less than 0,5 MT.
Figure 3 Indonesian Rice Import in 2000-2012 Source: FAS USDA 2000-2012
The Indonesian rice production increases steadily because the harvested area also grow steadily. In 12 years the harvested area only increase 13,97 and the
national average for yield also not really significant increase. The yield in 2012 is still at 5,1 tonha, it is under the ideal yield at 8 tonha. The lack of harvested area
needs the enhancement of yield to compensate it. The enhancement of yield still difficult for Indonesia, there are still many problem to be solved. The
encouragement of new technology to produce higher yield and more stable production along the year are needed. The extention program for farmers to use
new technology also needs to do continuously and massively to support the enhancement of yield and rice production in Indonesia.
0,000 0,500
1,000 1,500
2,000 2,500
3,000 3,500
4,000
imports
Table 1 Harvested area, production, and yield of rice in Indonesia in 2000-2012
Year Harvested Area
Ha Production
Ton Yield
TonHa 2000
11.793.475 51.898.852
4,40 2001
11.499.997 50.460.782
4,39 2002
11.521.166 51.489.694
4,47 2003
11.488.034 52.137.604
4,54 2004
11.922.974 54.088.468
4,54 2005
11.839.060 54.151.097
4,57 2006
11.786.430 54.454.937
4,62 2007
12.147.637 57.157.435
4,71 2008
12.327.425 60.325.925
4,89 2009
12.883.576 64.398.890
4,99 2010
13.253.450 66.469.394
5,02 2011
13.203.643 65.756.904
4,98 2012
13.440.940 68.594.067
5,10
Source: BPS 2012
The rice self-sufficiency of Indonesia always above 90, it means the domestic consumption needs almost can be met by domestic rice production.
More than half of the national rice production is contributed by Java Island as the most fertile land and the biggest farm labor forces. Java produces about 2,5 MT
per year or about 52 of the national rice production. The other islands like Sumatera, Sulawesi, Kalimantan, and Bali with Nusa Tenggara contribute 24,
11, 7, and 5 of the national rice production, respectively. The major rice producing areas are West Java, East Java, Central Java, South Sulawesi, and
North Sumatera. In other hand for the other islands such as Kalimantan, Papua, Maluku, and small islands are not suitable to be planted by paddy. They only
contribute by 1 of national production BPS 2012.
Kategori