Indonesia Presidential Instructions to Ensure Food Security Being Prepared

Bogor, Indonesia (News Today) - The government is preparing two presidential instructions (Inpres) to ensure food security in anticipation of expected extreme weather changes, chief economic minister Hatta Rajasa said. Speaking to reporters on the sidelines of a limited cabinet meeting on economic affairs here Thursday, Hatta said the drafts of the two presidential instructions were being finalized and would hopefully be issued early in 2011.

"We must increase food supply and that is why we need the presidential instructions," he said. He said one of the instructions would give the agriculture minister flexibility in responding to problems caused by extreme changes in the weather pattern, insect attacks or damage to agricultural lands. Under the presidential instruction, the agriculture minister could issue policies to realize such things as earlier distribution of seeds or provision of contingency funds to anticipate production changes as a result of weather problems through price stabilization or other mechanisms.

"The government will pay serious attention to food issues and problems affecting fertilizer and seed supplies and other related matters such as the need to intensify counseling programs in the regions," he said. Regarding the other presidential instruction, he said it would give flexibility to the National Logisitcs Agency (Bulog) to supply and purchase farmers’ rice without adherance to certain quality standards. Hatta said with the presidential instruction, Bulog would have flexibility to buy rice at a commercial price and sell premium rice demand for which was now rising due to the emergence of a new middle class in Indonesian society.

He said there had been an increase in food prices but the government would strive to meet demand and stabilize the prices through, among other things, market operations. Meanwhile, he said, Bulog had decided to import up to 1.28 million tons of rice to keep supply at the desired level. The rice import plan would be carried out at the end of 2010 and early in 2011.

Bulog had also intervened in domestic rice markets by releasing 3,000 tons from its stockpile. Of the released volume, 2,000 tons were distributed in Jakarta. To ensure food supply in 2011, he said, food production in the country needed to be kept high because the countries from which Indonesia usually imported rice were planning to limit their exports.

Source : kompas

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