1 Jul 2025
Indonesia is exploring opportunities to deepen its rice trade relationship with Cambodia, as it seeks to diversify import sources to meet rising domestic demand, according to Indonesian Ambassador to Cambodia Santo Darmosumarto. Speaking at a recent press conference organized by the Club of Cambodian Journalists (CCJ), the Ambassador emphasized both the potential and challenges of expanding bilateral rice trade.
“Indonesia, while being a major rice producer with a significant reserve for domestic use, continues to require rice imports to meet the needs of its nearly 300 million citizens,” said Darmosumarto. “We see promising potential to increase rice imports from Cambodia, a growing rice exporter in Southeast Asia.”
Despite Indonesia’s substantial annual production, domestic supply frequently falls short of demand. This has led the country to actively seek reliable trade partners in the region to supplement its food security. Cambodia, with its rising rice export profile, has become a country of interest.
The Indonesian Chamber of Commerce in Cambodia echoed this sentiment, noting ongoing improvements in trade and investment relations between the two countries. The chamber continues to play a key role in encouraging deeper economic collaboration, particularly in the agri-food sector.
However, the Ambassador also acknowledged existing hurdles, primarily around competitive pricing and transportation costs. While Cambodian rice is widely recognized for its quality, its higher logistics expenses can affect its competitiveness compared to rice from neighboring exporters like Vietnam and Thailand.
“Transportation is a critical factor in determining the final cost of Cambodian rice,” Darmosumarto explained. “Reducing shipping costs could significantly enhance its appeal to Indonesian buyers and help it better compete in our market.”
In a strategic push to bolster exports, Cambodia has set a goal of exporting one million tonnes of rice annually by 2025. This effort includes improving rice quality, investing in processing technology, and diversifying product offerings to appeal to a broader international clientele.
As part of ongoing efforts, Cambodia and Indonesia signed a bilateral agreement to export 250,000 tonnes of rice per year starting in 2024, including a dedicated 22,500-tonne shipment aligned with the celebration of Eid al-Fitr in March 2024. The agreement is seen as a significant step toward strengthening food trade ties between the two nations.
Indonesia currently holds the largest rice reserves in ASEAN, with stockpiles exceeding 3.7 million tonnes, surpassing regional producers such as Thailand and Vietnam. For the 2024–25 crop year, Indonesia is expected to produce approximately 34.6 million tonnes of rice, reinforcing its position as both a producer and a key player in regional rice trade.
As bilateral cooperation intensifies, both countries are optimistic that addressing logistical inefficiencies and improving trade mechanisms will pave the way for long-term collaboration and sustainable growth in the regional rice market.