Karawang, West Java. Indonesia is preparing to export at least 2,000 tons of non-premium rice per month to Malaysia as the country’s rice stockpile approaches 4 million tons, a senior official from the Agriculture Ministry said on Thursday.

The export plan is currently in the administrative preparation phase and reflects a major shift in Indonesia’s rice policy -- from a traditional importer to a potential new exporter in the global market.

“Talks have been held with Malaysian counterparts, and we’ve met with potential buyers,” Deputy Minister of Agriculture Sudaryono said during a visit to Karawang, West Java. “We’re now finalizing the details. Once President Prabowo Subianto gives the go-ahead, we’re ready to proceed.”

According to Sudaryono, the planned monthly export volume to Malaysia could reach around 2,000 tons. “Malaysia sources rice from multiple suppliers, but we’ve agreed on an initial volume,” he added.

Minister of Agriculture Andi Amran Sulaiman has also held discussions with Malaysian officials to follow up on the proposed rice exports. Malaysia is currently facing high domestic rice prices, and its local production only meets about 40 to 50 percent of total demand.

Indonesia’s Exit from Import Market Triggers Global Rice Price Drop
Indonesia’s potential to export rice stems from its abundant reserves, now nearly 4 million tons, managed by the state logistics agency Bulog. This surplus has emerged following Indonesia’s decision to halt rice imports, contributing to a global oversupply and weakening world rice prices.

“The global rice price drop is largely due to Indonesia’s absence from the import market,” Sudaryono said. “As one of the largest rice importers, our withdrawal has had a significant ripple effect, pushing global supply up and prices down.”

Despite this global price slump, domestic rice prices in Indonesia have remained stable, buoyed by strong demand and strategic reserves.

Minister Amran previously said that Malaysia expressed interest in sourcing rice from Indonesia due to the steep price levels at home. He stressed that Indonesia’s high stockpile could serve not only for domestic use and social assistance but also as a strategic export reserve if needed.