August 8, 2023

Indonesia's wheat imports and consumption set to decline

Economic slowdowns experienced by Indonesia's key export destination countries has cast a shadow over the nation's wheat imports and consumption, the USDA Foreign Agricultural Service reported.

Projections indicate a reduction in Indonesia's wheat imports for the 2022/23 period, with figures expected to reach 9 million metric tonnes (MMT), marking a notable drop from the 11.23 MMT imported during the previous year of 2021/22. This trend is a direct response to the subdued demand linked to the economic downturn.

Indonesia's total wheat consumption during the 2022/23 period is anticipated to be around 9.5 MMT of wheat equivalent. This estimate comes in slightly lower than the prior projection of 9.7 MMT of wheat equivalent, signalling a shift in the nation's consumption dynamics amid its economic challenges.

Meanwhile, the impact of El Nino is anticipated to reverberate in the agricultural sector, with projections indicating a decrease in rice production for the 2022/23 period.

Estimates suggest that rice production could dip to 52.9 million metric tons (MMT), down from the previously forecasted 53.5 MMT for the same period. In light of potential price fluctuations and the need to ensure food security, Indonesia's state-owned enterprise BULOG is expected to fully exercise its mandate by importing 2 MMT of rice during the course of 2022/23.

-      USDA Foreign Agricultural Service