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[BUSINESS] · Indonesia · 7 sources

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Indonesia Boosts Rice Production and Reserves Amid Global Fertiliser Crunch

The Food and Agriculture Organization’s June 2026 Food Outlook placed Indonesia as the world’s fourth‑largest rice producer, projecting output of 38.5‑38.6 million tonnes for the 2025/26 and 2026/27 seasons – a rise of 4.5 million tonnes from the previous year and the highest increase among major producers. The report highlighted Indonesia’s stable farmer prices and growing stockpiles, with national rice reserves now exceeding 5 million metric tons, sufficient to meet domestic demand through May 2027 and to buffer potential El Niño impacts.

The Indonesian government has reinforced food security by simplifying access to subsidised fertiliser. PT Pupuk Indonesia reported delivering 4.58 million tonnes of fertiliser in 2026, a 130 % increase over the same period in 2025, following regulatory reforms that reduced verification steps and lowered retail prices. Minister of Agriculture Andi Amran Sulaiman and Coordinating Minister for Food Security Zulkifli Hasan emphasised continued support for rice self‑sufficiency, including higher guaranteed purchase prices for paddy and accelerated irrigation projects.

These measures have helped Indonesia halt imports of key staples such as rice, corn and sugar, positioning the country to maintain its swasembada (self‑sufficiency) status while regional neighbours face production declines.