News

Indonesian Wheat, Corn, Rice Imports to Increase

23 April 2012

INDONESIA - Total wheat, corn and rice imports are set to rise in the MY 2011/2012.

Wheat

Total Indonesian wheat imports in MY 2011/12 are estimated to increase by 12 per cent to 7.4 MMT from the MY 2010/11 level of 6.6 MMT. Some of this predicted growth is because several new wheat millers and multinational food manufacturers have begun production and are driving demand. Post predicts that in the current marketing year, wheat imports from the United States will reach an estimated 640,000 MT. This decrease is primarily due to the return of Australia into Indonesian market. Australia’s closer proximity to Indonesia has been the major factor providing more opportunity to supply wheat into the country. Finally, new trends in the Indonesian bakery and biscuit sectors are indicating a higher preference for more US soft white wheat according to an industry analyst.

Corn

Based on import realisation reported by GPMT, Post revised MY 2010/11 Indonesia corn imports to 3.3 MMT from previous estimate of 2.5 MMT. Indonesia’s production of corn in MY 2011/12 is estimated to significantly increase to 8.1 MMT compared to 6.8 MMT in previous MY 2010/11. The increase is mainly due to favorable weather, increase in harvested area, and increased yield from more use of hybrid seed and less pest and disease incidents. However, new feed mills expected to start operational this year will maintain the high level of imports of corn.

Rice

Based on import realisation by BULOG, Post revised MY 2010/11 Indonesian rice imports to 3.1 MMT of milled rice equivalent from previous estimate of 2.775 MMT. Post predicts MY 2011/12 Indonesian rice production to slightly increase to 36.3 MMT of milled rice equivalent compared to 35.5 MMT of milled rice equivalent produced in previous MY 2010/11. The increase is primarily due to favourable weather, slightly larger harvested area, and less pest and disease incidents. Nonetheless, in order to maintain rice prices in domestic market and main the secure level of stock held by BULOG, Post estimates that in MY 2011/12 Indonesia would still need to import a total of 1.95 MMT of milled rice equivalent.