Coordinating Minister of Economy, Hatta Rajasa disclosed that the Government allocated fund of around Rp 2 trillion to anticipate the impact of the world’s food crisis on Indonesia “Contingent fund is prepared, all measures ready to be taken to anticipate” the Minister remarked in Jakarta Friday (13/8).
The contingency fund in State Budget 2010 consist of rice reserve fund Rp 1 trillion and fund for price stabilizer Rp 1 trillion. Today there is a trend of price increase in world’s food, due to drop of the world’s food production on account of climate change. For example Russia was swept by heat wave, so production of wheat dropped to 2 percent, forcing Russia to stop exporting wheat. This step was followed by other states, dragging other commodities up in pricing. “We are cautious of the possibility of the world’s food crisis affecting the local food market” Minister Hatta underscored.
Indonesia, according to Hatta, was learning a lesson from 2008 experience when food crisis swept the world but fortunately Indonesia was having food surplus. At least there were four steps taken by Indonesia to manage the impact world’s food crisis. i.e. to maintain food productivity and growth, to adapt to changing climate, to maintain stability of food price through market operation (cheap market) and accelerating supply of raskin (rice for the poor) rice.
The Government protect farmers by way of channeling fertilizers, procuring land, and seeds subsidy. Meanwhile supply of rice is sufficient, posted at 4.7 million tons, which means there is nothing to worry about.