Business · Energy & Commodities · 4 hrs ago
Indonesia's Rice Production Costs Far More Than in Asian Peers
Indonesia's food minister Zulkifli Hasan says rice production costs are far higher than in nearby countries.
He gave figures of Rp12,000–Rp14,000 per kilogram in Indonesia, compared with about Rp4,000 in Thailand and Vietnam.
High costs make Indonesian crops less competitive and add to reliance on imports; the country imported about 4.5 million tonnes of rice in 2024.
Hasan said poor irrigation management means much farmland is planted only once a year, while labor, land rental and transport also add to costs.
The government has simplified rules for distributing subsidized fertilizer, cutting them from 145 to three, and says fertilizer uptake rose from 6 million to 9.5 million tonnes.
Officials are also working to improve irrigation and farm productivity.
The government has set the rice purchase price for farmers at Rp6,500 per kilogram without a moisture requirement, and Hasan said this helped raise the Farmer Terms of Trade index from 116 to 131.
Indonesia’s rice production costs are Rp 12,000 to Rp 14,000 per kilogram, compared with about Rp 4,000 in Thailand and Vietnam.
Food Coordinating Minister Zulkifli Hasan said high costs are a major challenge for farm productivity and farmers’ welfare.
He pointed to low cropping intensity, linked to inadequate irrigation, as a root cause.
Indonesia imported about 4.5 million tonnes of rice in 2024.
Other reported cost pressures include manual labour, expensive land, logistics and complicated access to subsidised fertiliser.
- Who
- Food Coordinating Minister Zulkifli Hasan discussed the issue.
- What
- Indonesia’s rice production costs are Rp 12,000 to Rp 14,000 per kilogram, far above costs in several Asian countries.
- When
- He spoke at the Agrinex 2026 agricultural exhibition on October 23, 2026.
- Where
- Jakarta, Indonesia.
- Why
- Hasan linked high costs to low cropping intensity and inadequate irrigation; reports also cite labour, land, logistics and fertiliser access.
This story does not have two clearly opposing sides.
Indonesia imported 4.52 million tonnes of rice, according to data cited by kabarbisnis.com.
The average price of paddy rose from Rp 5,000 to Rp 6,500 per kilogram, according to kontan.co.id.
Zulkifli Hasan discussed rice production costs and irrigation at the Agrinex 2026 agricultural exhibition in Jakarta.
- Indonesia rice production cost
- Rp 12,000–Rp 14,000 per kilogram
- Thailand and Vietnam rice production cost
- About Rp 4,000 per kilogram
- Indonesia rice imports in 2024
- 4.52 million tonnes
- National paddy field area
- 7.4 million hectares
- National planted area
- 10 million hectares
- Manual labour per hectare
- Indonesia: about 190 person-days; Vietnam: 64; Thailand: 21
3 sources
What people are saying
Why is irrigation not being looked after? Because it is divided up; the rules exist. 1,000 hectares are handled by the regent, 3,000 hectares by the governor. But regents and governors do not build irrigation; they build roads. In the end, the irrigation is damaged. Our production is low. We will fix it.
It is impossible for a nation to become a developed nation if it depends on others even for food.
That means productivity is the lowest; over time, we will certainly fall behind other countries.