Indonesia Should Anticipate Food Crisis

Angkut Beras
Sumber :
  • ANTARA/Arief Priyono

VIVAnews - Indonesia must have concerns over the current food crisis issue, which has affected several countries worldwide. Economists urge the govermment to start focusing on improving domestic food products instead of depending much on imports.

"Indonesia, apart from being commodity exporter, is also listed as top consumer country," said Destri Damayanti, an economist at PT Mandiri Sekuritas, on Sunday, Jan 16.

The United Nations agency on food and agricultural matters FAO stated that food price hike in the global level occurred since late 2011 which was signaled by the rise in FAO's food price index.

The index hit 214.7 in average by December 2010, while the record in June was at the level of 213.5.

"The decision to facilitate Bulog (National Logistics Agency) to intervene in the market is a sound move but is only appropriate in the short run," said Destri.

She aims criticism toward the government's policy on rice and sugar imports. "This is only temporary. Indonesia used to importing rice and sugar from Vietnam and Thailand. But the two countries will retain their exports to protect domestic needs," said Destri.

"Food issue is included in the calculation of inflation because it affects people's purchasing power," she said. The national inflation rate along 2010 touched 6.96 percent in which food prices contributed 15.4 percent to the total percentage.

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Translated by: Bonardo Maulana W

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VIVA.co.id
10 Mei 2024