Indonesia begins premium rice exports to Malaysia, targeting Sarawak's demand

Indonesia has commenced its first shipment of premium rice to Malaysia, marking a significant step in bolstering bilateral trade and addressing Sarawak's substantial rice needs. An initial consignment of 1,000 tons has been dispatched, serving as a promotional launch to introduce Indonesian rice varieties into the Sarawak market.

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For Sarawak, we need approximately 200,000 tons per year. The 1,000 tons is our step to promote Indonesian rice to Sarawak specifically and Malaysia in general.

Sarawak, a region within Malaysia, has an annual rice requirement of around 200,000 tons. This demand presents a considerable opportunity for Indonesian exporters. Jumaat bin Ibrahim, General Manager of Padi dan Beras Borneo Sdn Bhd, highlighted that this initial 1,000-ton shipment is intended to pave the way for larger volumes. The trade agreement values the rice at approximately 3.9 Malaysian ringgit per kilogram, or about Rp 17,000. If exports reach Sarawak's full annual demand, the trade value could reach approximately Rp 3.39 trillion.

The delivery route through the Entikong border in West Kalimantan was chosen symbolically, emphasizing the close geographical and cultural ties between Sarawak and Indonesia's West Kalimantan province. This collaboration is viewed not just as a business transaction but as a means to strengthen the relationship between two nations with shared history and heritage.

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We already have self-sufficiency in rice, our stock is 5.2 million tons as of today. We have even rented warehouses, we have a surplus of 2 million tons.

Indonesian Minister of Agriculture, Andi Amran Sulaiman, welcomed the Malaysian demand, assuring that domestic supply remains robust. Indonesia currently holds a stock of 5.2 million tons of rice, including a surplus of 2 million tons stored in additional warehouses. Based on national estimates, rice production in 2026 is projected to exceed 2025 levels, ensuring Indonesia's capacity to meet both domestic needs and the growing export demand from Malaysia. The Minister also noted that his Malaysian counterpart, Datuk Seri Mohamad Sabu, expressed appreciation and a commitment to expedite and increase import volumes from Indonesia.

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I just spoke with the Malaysian Minister of Agriculture, Mr. Datuk Seri Mohamad Sabu. He appreciates it and he will expedite and increase exports from Indonesia to Malaysia.