Wedoany.com Report-Jun 14, During a press conference with the Club of Cambodian Journalists in Phnom Penh, Indonesian Ambassador to Cambodia Santo Darmosumarto highlighted opportunities to boost rice trade between Indonesia and Cambodia. He also addressed challenges related to pricing and transportation costs that affect Cambodia’s competitiveness in the Indonesian market.

Indonesia, a leading rice producer with over 3.7 million tonnes in reserves, faces high domestic demand due to its nearly 300 million population. To meet this need, the country imports rice from regional partners. Darmosumarto noted Cambodia’s growing role as a rice exporter, stating: “While Indonesia produces a large quantity of rice, demand still exceeds our local supply. Indonesia is always interested in purchasing more rice from friendly countries that can meet our demand.”

The Indonesian Chamber of Commerce in Cambodia reported strengthening trade ties, supporting increased investment and cooperation. However, Darmosumarto explained that Cambodian rice faces competition from other regional suppliers due to pricing and quality considerations. He said: “Indonesia carefully evaluates the quality and pricing of rice when determining its imports. At times, Cambodian rice faces competition from neighbouring countries, and price remains a significant consideration.”

Transportation costs were identified as a key barrier. Darmosumarto emphasized that high shipping expenses can raise the price of Cambodian rice, reducing its appeal. He suggested: “Transportation is critical to ensuring that Cambodian rice remains competitively priced. If we can reduce the cost of transportation, Cambodian rice will become a more attractive option for Indonesian buyers.” Lowering these costs could enhance Cambodia’s market share in Indonesia.

Cambodia aims to export one million tonnes of rice annually by 2025, focusing on improving quality and diversifying products to attract global buyers. In 2024, Cambodia and Indonesia agreed to an annual supply of 250,000 tonnes of rice, including 22,500 tonnes for Eid al-Fitr celebrations in March 2024. This deal has strengthened bilateral trade relations.

Indonesia’s rice production is projected to reach 34.6 million tonnes in the 2024/2025 season, reinforcing its position as ASEAN’s largest rice reserve holder, surpassing Thailand and Vietnam. By balancing domestic consumption with imports, Indonesia seeks to maintain stable supplies while fostering regional trade partnerships