Indonesia’s President Prabowo Subianto has greenlit rice exports to countries in need, marking a significant policy shift as the nation grapples with a record surplus that has strained storage capacity. The decision, announced during a visit to South Sumatra on April 23, 2025, prioritizes humanitarian aid over profit, reversing earlier caution from Agriculture Minister Andi Amran Sulaiman about safeguarding domestic reserves.
A Surplus with Logistical Hurdles
Over the past four months, Indonesia has achieved unprecedented rice production levels, a triumph for its agricultural sector. Yet, this abundance has brought new challenges. With government storage facilities nearing full capacity, the State Logistics Agency (Bulog) currently holds 3.3 million tonnes of rice reserves, aiming to reach 4 million tonnes by May. President Prabowo has ordered immediate action to address the storage crisis, directing government agencies, state-owned enterprises, the military, and police to repurpose idle land for temporary storage sites.
“I’ve asked government agencies, state-owned enterprises, the Army, and the police to join forces. I’ll allocate special funding to build temporary storage facilities that won’t be too costly to construct” said Prabowo during his South Sumatra address. This short-term fix aims to prevent spoilage and maintain the quality of the surplus harvest while longer-term solutions are developed. 
Humanitarian Exports Amid Regional Demand
Prabowo’s export approval comes in response to requests from several countries facing rice shortages. Emphasizing a spirit of humanity, the President insisted that exports should cover only basic production, logistics, and administrative costs, avoiding profit-driven motives. “I have received reports from the agriculture minister and the coordinating food minister that several countries have requested rice imports from Indonesia. I approved it. I ordered that rice be sent to them” he stated.
This decision contrasts with a recent rejection of Malaysia’s request to import rice, as Agriculture Minister Amran cited the need to prioritize domestic stocks and assess climate conditions. During a press conference in Jakarta on April 22, following a meeting with Malaysian Agriculture and Food Security Minister Mohamad bin Sabu, Amran noted Malaysia’s struggle to meet 40 to 50 percent of its national demand, driving up local prices. “I said, for the time being, we will maintain the stocks. We will assess the climate conditions first” he explained.
Meanwhile, Japan, grappling with rice prices soaring to between Rp 93,000 (US$5.52) and Rp 100,000 per kilogram for 15 consecutive weeks, is set to discuss supply options with Indonesia. A delegation from Japan’s Ministry of Agriculture, Forestry, and Fisheries will visit on April 29, signaling potential export agreements. Despite Japan’s efforts to stabilize its market by releasing stockpiled supplies, prices continue to climb, according to local media reports.
Long-Term Vision for Food Resilience
Beyond immediate export and storage measures, Prabowo’s administration is laying the groundwork for sustainable food security through the Red and White Village Cooperative program. This ambitious initiative plans to establish 80,000 cooperatives nationwide, each equipped with warehouses, cold storage, and transportation vehicles. “These cooperatives will safely store our harvests until the time is right to sell” Prabowo emphasized, highlighting their role in building resilience against external pressures such as climate variability and global market fluctuations.
The program also aims to address rural unemployment by hiring graduates with bachelor’s degrees who have migrated to urban areas, as well as retirees with professional experience. By integrating local talent into the cooperative framework, the government hopes to bolster community engagement and ensure efficient distribution networks. This dual focus on infrastructure and human capital underscores a broader strategy to modernize Indonesia’s agricultural sector while maintaining food sovereignty.
Balancing Domestic Needs and Global Responsibilities
Prabowo’s export policy raises questions about balancing domestic needs with international obligations. While Indonesia’s rice surplus offers an opportunity to support neighboring countries, critics caution against overextending resources at the expense of local stability. Agriculture Minister Amran’s earlier stance on prioritizing domestic reserves reflects lingering concerns about unpredictable weather patterns, such as El Niño or La Niña events, which could disrupt future harvests.
Analysts note that the decision to export, even on a humanitarian basis, could strengthen Indonesia’s diplomatic ties in the region. Providing rice to countries like Japan and potentially Malaysia in the future may position Jakarta as a key player in South East Asian food security networks. However, the government must ensure that surplus distribution does not exacerbate logistical bottlenecks or leave domestic markets vulnerable to sudden shortages.
Economic Implications of the Surplus
The rice surplus presents both opportunities and challenges for Indonesia’s economy. On one hand, high production levels bolster the agricultural sector, a critical driver of employment and GDP in rural areas. Exporting rice, even without significant profit margins, could generate foreign exchange and enhance trade relationships. On the other hand, the costs of constructing temporary storage facilities and funding the cooperative program require substantial public investment, potentially straining budgets allocated to other sectors.
Moreover, the surplus could depress local rice prices if not managed effectively, impacting farmers’ incomes. The government’s plan to store harvests until market conditions are favorable aims to mitigate this risk, but success depends on the timely rollout of cooperative infrastructure. Economists suggest that targeted subsidies or price support mechanisms may be necessary to protect smallholder farmers, who form the backbone of Indonesia’s rice production.
Regional Context and Climate Concerns
Indonesia’s rice surplus stands in stark contrast to shortages in neighboring countries, driven partly by climate challenges and supply chain disruptions. Malaysia’s inability to meet half its domestic demand highlights the region’s uneven agricultural capacity, while Japan’s price surge reflects broader global pressures on staple crops. Indonesia’s ability to export rice positions it as a potential stabilizer in the region, but this role comes with the responsibility to monitor environmental factors closely.
Climate change remains a looming threat to South East Asia’s agricultural output. Erratic rainfall, rising temperatures, and extreme weather events could undermine Indonesia’s current abundance in future seasons. Agriculture Minister Amran’s emphasis on assessing climate conditions before committing to further exports suggests a cautious approach, aligning with regional efforts to adapt farming practices to changing environmental realities.
Community Impact and Future Outlook
For rural communities across Indonesia, the rice surplus and associated policies carry direct implications. Farmers in areas like Japakeh near Banda Aceh, where rice seedlings were planted in early 2025, stand to benefit from government initiatives to store and distribute harvests efficiently. However, the success of these measures hinges on transparent implementation and equitable access to cooperative resources.
As Indonesia navigates its surplus and export strategy, the coming months will test the government’s ability to balance humanitarian outreach with domestic priorities. With Japan’s delegation arriving soon and potential future requests from other nations, Prabowo’s administration faces a delicate juggling act. The Red and White Village Cooperative program, if executed effectively, could serve as a model for sustainable food security, not just for Indonesia but for the wider region.
For now, the nation watches as temporary storage sites take shape and export agreements unfold. Whether this surplus marks a turning point for Indonesia’s agricultural policy or a temporary windfall remains an open question, one that will shape food resilience in South East Asia for years to come.
