Java to Be Affected by Food Price Hike

VIVAnews - In the past few months, the world has seen constant rise of food prices. Standard Chartered Senior Economist Fauzi Ichsan views that the situation will affect Indonesians. However, compared to Africa, Indonesia is benefited by its abundant natural resources.

Geographically speaking, Sumatra and Kalimantan will not be much impaired by the hike in food prices as, at the same moment, commodities' prices such as coal and crops. "They as a result have higher income," he said in Jakarta, Feb 21.

It is Java that will be spoiled by the soaring food prices, for the island produce no commodities. Most of the populations earn their living from salaries.

Therefore, he considers the policy on direct cash aid that the government issues has been on target. The assistance will maintain disadvantaged people to have enough purchasing power.

According to Fauzi, the stable purchasing power is more important than food reserves in pursuit of better national economy. "Enough food stock will lead to worst condition if the people are incapable of buying," he said.