Indonesia’s wheat imports will remain high if corn production fails to meet demand

24.02.2017

The Indonesian government’s decision to stop corn importation for feed is expected to increase wheat imports if local corn production cannot meet demand from feed millers in the country, according to Enny Sri Hartati, Executive Director of the Institute for Development of Economics and Finance (Indef).

The country’s Statistic Centre Agency reported that wheat imports in 2015 were 7.41 million tonnes with a value of USD 2 million. The imports then surged to 10.50 million tonnes in 2016, of which 2.2 million tonnes were feed grade. “The government always claims a surplus corn production, but this is not so,” said Ms Hartati. “So if national corn production can’t meet demand for feed and food, import of wheat will remain high this year.”


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