June 16, 2009

The National Corn Council of Indonesia is optimistic that the country's corn export volume this year will reach 1 million tonnes, soaring by a whopping 233 percent from 300,000 tonnes last year, thanks to production increase.

Secretary General of DJN Maxdeyul Sola said Indonesia's corn exports in 2009 would reach at least 1 million tonnes and could even hit 3 million tonnes, thanks to an increase of around 3 million tonnes in domestic corn production to 19.4 million tonnes from 16.3 million tonnes in 2008.

According to Max, attractive global price movement would dictate corn export volumes to 3 million tonnes.

He added Indonesia had confirmed not to import corn this year. In 2008, Indonesia still had to import around 40,000 tonnes of corn.

Indonesia's corn production this year, he continued, would increase, thanks to stronger interests from farmers in cultivating corn in the wake of soaring domestic corn price at a steady level of IDR2,400 (US$0.23) per kg.

Max explained the soaring domestic corn price had motivated farmers to enlarge their corn areas and use high-quality seeds, such as hybrid seeds.

According to him, with a sufficient and proper cultivation technology, corn production would increase significantly as corn field productivity rate could reach 12 tonnes per hectare.

Compared to other crops, Max said corn cultivation is the most profitable since the cost of production is only IDR600-IDR800 per kilogram. Besides, opportunities to export corn are open wide since global demand for corn is steadily increasing, especially this year, he said.

US$1 = IDR10,188.21 (June 16)