Logo of Phnom Penh Post newspaper Phnom Penh Post - Rice export MoU signed

Rice export MoU signed

Rice export MoU signed


Indonesia’s Trade Minister Gita Irawan Wirijawan (L) shakes hands with Cambodia’s Minister of Commerce Cham Prasidh following the signing of an MOU yesterday. Photograph: Heng Chivoan/Phnom Penh Post

Indonesia’s Trade Minister Gita Irawan Wirijawan (L) shakes hands with Cambodia’s Minister of Commerce Cham Prasidh following the signing of an MOU yesterday. Photograph: Heng Chivoan/Phnom Penh Post

Cambodia has signed a memorandum of understanding (MoU) yesterday to export 100,000 tonnes of rice per year to Indonesia. Senior Cambodian officials hope the MoU will be the impetus for attracting more investments from other ASEAN member states.

The MoU was signed between Cambodia’s Minister of Commerce and Indonesia’s Trade Minister Gita Irawan Wirijawan in Siem Reap yesterday, and comes as Indonesia finds itself in need of imports for the first time since 2008 and 2009 as domestic rice stocks will not meet demand this year, according to Bloomberg.

Cham Prasidh, Cambodia’s Minister of Commerce, said Cambodia’s state-owned Green Trade Company will supply to the Indonesian state-owned firm DULOG as part of the deal.

“We tried to secure an amount that is sizable. If things go smoothly, we can go to a higher level – we’re starting with 100,000 tonnes per year,” he said. “If things go well, we can increase our exports, depending on Cambodia’s supply. If we can supply more than 100,000 tonnes it will be welcomed by Indonesia."

Indonesian Trade Minister Gita Irawan Wirijawan recognised the deal will spur further trade relations and economic ties between the two ASEAN member states.

“This is a good gesture. The MoU, I think, is the first step of many. We’re hopeful that we will be able deepen our relationship with Cambodia soon,” he said.

However, he does not know the exact timeframe for exporting, he said.

“When exactly? We will be looking into the situation, we will work more closely in the coming years — you will see more in the future.”

Cham Prasidh said it will happen at some point this year as domestic companies are preparing to export.

Thon Virak, director of a state-owned-rice exporter Green Trade Company, told the Post previously that under the deal Indonesia has not limited the amount it will import. Green Trade is working with 10 other private domestic companies to meet the supply required by the deal with the price per tonnes between US$460-$470.

Lim Bun Heng, managing director of Loran Import-Export, a local milled rice exporter, confirmed that the company will work with Green Trade, saying that he has already prepared 2,000-3,000 tonnes as a first step.

But, he suggested to Green Trade that Loran would be able to supply them with 100,000 tonnes of rice per year.

Cham Prasidh hopes Cambodia will attract more Indonesian investors for rice milling.

“I believe that more Indonesian companies will come. They will invest in rice processing as they know what quality of rice is needed in Indonesia. When they export to their own country, there will not be any problems.”

To contact the reporter on this story: May Kunmakara at [email protected]


  • Cambodia-Thailand rail reconnected after 45 years

    A railway reconnecting Cambodia and Thailand was officially inaugurated on Monday following a 45-year hiatus, with the two kingdoms’ prime ministers in attendance at the ceremony. On the occasion, Cambodian Prime Minister Hun Sen and Thai Prime Minister Prayut Chan-o-cha travelled together from Thailand’s

  • Thousands attend CNRP-organised pro-democracy vigil in South Korea

    Thousands of supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) on Saturday gathered in the South Korean city of Gwangju to hold a candlelight demonstration calling for the “liberation” of democracy in Cambodia. Yim Sinorn, a CNRP member in South Korea, said on

  • US Embassy: Chinese trade does not help like the West’s

    The US Embassy in Phnom Penh on Friday said relations between China and Cambodia did not create jobs or help industry when compared to the trade between the Kingdom and the US. “About 87 per cent of trade [with China] are Chinese imports, which do not

  • New airport study set for 2019

    A feasibility study on the construction of a new airport in the Kingdom will be launched later this year, according to a Ministry of Tourism spokesman on Monday. The plan was approved last week in a meeting held by the Ministry of Economy and Finance