JAKARTA, INDONESIA — Corn production in Indonesia in 2019-20 is forecast to reach 13.3 million tonnes, up from 12.6 million the previous year, as government incentives to expand production continue to yield results, according to a March 29 Global Agricultural Information Network report from the U.S. Department of Agriculture (USDA).

The USDA noted that the government has established a minimum selling price and provided subsidized seed and fertilizer to increase harvested area.

“The 2017-18 harvested area is revised to 3.65 million to reflect increase in non-traditional producing areas such as North Sulawesi,” the USDA said. “Harvested area is forecast to reach 3.7 million hectares in 2018-19 and further expand to 3.9 million hectares in 2019-20 as farmers consider corn more profitable relative to other crops.”

Despite higher corn production, local demand from the feed sector will continue to outpace supply, the USDA said.

It noted that corn import restrictions remain in place for feed use although, due to high prices in late 2018, Indonesia temporarily allowed imports of corn for feed.

Corn imports for 2018-19 are expected to reach 850,000 tonnes, up from 550,000 tonnes the previous year.