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Indonesia considers acquiring a rice producer in Cambodia

Indonesian President Joko Widodo has asked the State Logistics Agency (Bulog) to consider acquiring a rice producer in Cambodia.

He argued that it was better for Indonesia to invest in one producer rather than constantly importing from neighbouring countries.

Data from the US Department of Agriculture showed that Indonesia is the world’s fourth largest rice producer based on average annual production over the past five years. However, the country has consistently imported rice due to high domestic rice prices in recent years. Specifically, the El Nino weather phenomenon and prolonged dry seasons in many regions have decreased domestic rice production.

According to Bulog, Indonesia has purchased 1.9 million tonnes of rice this year, accounting for 52% of the annual plan. Last year, the country imported 3.3 million tonnes of grain.



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