Perum Bulog admits to difficulties in obtaining imported rice, even though many countries initially offered to export rice to Indonesia. Febby Novita, Director of Business at Perum Bulog, stated that this is due to competition with European countries.

"We already had contracts, but the importing countries decided to cancel because, frankly, the prices in Europe are higher than in Indonesia," said Febby when interviewed at the Ombudsman RI office in South Jakarta on Friday, November 17, 2023.

According to Febby, European countries are currently importing a significant amount of rice due to a shift from wheat to rice. This is related to wheat restrictions resulting from geopolitical situations in the world's largest wheat-producing countries, namely Russia and Ukraine.

Febby also revealed that Bulog's purchase prices are losing out to those of the Philippines. The Philippines can import rice at a higher price compared to Indonesia. The choice to import rice is also becoming more challenging due to stricter selection processes.

"It's interesting for some current import conditions; it's not as easy as before," she added.

The government has decided to import 2 million tons of rice in 2024 to meet the needs of food aid or rice social assistance (bansos beras). This policy is related to President Joko Widodo's decision to continue the distribution of rice bansos until June 2024.

Rice imports are also carried out to anticipate the potential shortfall in domestic production at the beginning of the year due to the predicted delay in the harvest season. According to the government, the import of 2 million tons of rice is necessary because food aid for rice in the first three months of 2024 requires 640,000 tons, plus nearly 250,000 tons of SPHP rice, making a total of 900,000 tons.

However, the Ministry of Trade has not yet issued the import permit. Bulog is still completing the task of importing 1.5 million tons of rice by the end of this year. Moreover, Bulog revealed that the import contracts for 2023 are at risk of cancellation for 500,000 tons.