Taking a Closer Look at the Social, Economic & Political Importance of Rice for Indonesia
Rice is a crucial commodity, particularly for Asia where most of the population is dependent on rice as the basic staple food that is consumed on a daily basis (and usually multiple times per day). It is estimated that more than 90 percent of rice is produced and consumed in Asia. Hence, rice consumption and production in the West is rather insignificant (although rice does have a centuries-long history in the West and thus there also developed specific European rice culinary specialties such as the risotto in Italy or the paella in Spain). Thus, rice-producing Asia is a net exporter of rice to the rest of the world.
Rice is eaten by nearly half the world’s population and forms the source of one quarter of global per capita energy. Interestingly enough, rice is the single largest food source for the poor.
The traditional method to cultivate rice is by flooding the paddy field (sawah) while, or after, planting the young seedlings. This traditional and simple method does require sound planning and specific infrastructure (water damming and channeling). While flooding is not a mandatory requirement for rice cultivation, it manages to reduce the growth of less robust weed and pest plants, while preventing vermin from damaging the paddy (paddy is rice with husk, hence paddy turns into rice after the removal of husk).
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This articles discusses:
• the importance of rice in terms of people's diet (global)
• the international rice market (and factors that impact on this market)
• rice production and consumption in Indonesia
• whether Indonesia can become self-sufficient in rice
Read the full article in the January 2019 edition of our monthly research report. This report is scheduled to be released in early February 2019. You can purchase the report by sending an email to info@indonesia-investments.com or a WhatsApp message to the following number: +62(0)8788.410.6944
