Food Production and Distribution Need Strengthening

KOMPAS/TOTOK WIJAYANTO

The atmosphere of the food trade at Senen Market, Central Jakarta, Wednesday (4/3/2020).

JAKARTA, KOMPAS — In the midst of efforts to contain the impacts of global food inflation resulting from the Russia-Ukraine war, Indonesia is now faced with a spike in the prices of a number of foodstuffs, most of which are produced domestically. To overcome this problem, food production and distribution need to be strengthened.

According to Kompas’ observation in a number of regions, the prices of several basic commodities, especially chili and shallots, have spiked in the last month.

According to data from the Strategic Food Price Information Center (PIHPS), the price of red chili peppers was still Rp 47,550 per kilogram on 18 May 2022, and then it crept up to Rp 65,100 per kg on 2 June 2022. The price of this commodity continued to increase sharply until it reached Rp102,000 per kg on Monday (11/7/2022).

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The price of medium-sized shallots has seen a similar rise. On 12 May 2022, the price was still Rp 39,800 per kg, and then it continued to rise to reach Rp 50,250 per kg on 15 June. On 11 July, the price had reached Rp 64,750 per kg.

To quote from the website of the Horticulture Directorate General at the Agriculture Ministry on Friday (8/7), among the causes of the increase in chili prices, which has occurred since the beginning of June, is decreased productivity as a result of extreme weather.

This also triggered an increase in diseases.

According to data from the Meteorology, Climatology and Geophysics Agency (BMKG), rainfall in April-May tended to be higher than rainfall over the same period in 2021. This also triggered an increase in diseases.

Food balance

Economics professor Nunung Nuryartono, from the Faculty of Economics and Management (FEM) at IPB University, said on Monday (11/7) that it was necessary to take a good look at how food production and distribution had been so far.

"We must have balance for each food commodity, such as [between] the points of production and consumption. After that, how has the distribution been? [Mobile] Applications should be used to trace the flow of distribution. Then, the government, together with all [relevant] authorities, must ensure that no speculators are exploiting it," said Nunung.

KOMPAS/WINARTO HERUSANSONO

Farmers in Ngaringan, Grobogan Regency, Central Java are happy because their corn harvest has increased.

The use of technology, said Nunung, must continue to be encouraged in regulating food supply and demand management, for example, by using ozone technology that can extend the life span of commodities. The technology already exists and is believed to be very good for applying at various food production centers.

"We have to look at it comprehensively. A region is not merely a point of production, but the place where technology enters, likewise in the aspect of distribution or logistics systems that must be well prepared. Regions with shortages should be detected immediately so that deliveries can be made right away," said Nunung, who is also FEM dean at IPB University.

In relation to the sharp increase in the prices of chili and shallots, Nunung pointed out that the buying power of the lower class must be maintained. "Because the impacts can follow one another in an uninterrupted manner. We need to see whether the government’s programs are really reaching the people who are in difficulty,” he said.

The government, said Nunung, must be very aware of the threat of an energy and food crisis, which, among other things, had caused Sri Lanka to collapse. “For energy [fuel oil] it is currently being controlled using a fairly large subsidy. The fiscal policy is working. With regard to food, each item in the food balance must be watched closely," he said.

NFA head Arief Prasetyo Adi once stated that he would develop a public dashboard that presented national food data in supplies of various commodities.

The National Food Agency (NFA) was formed with the authority and responsibility to monitor food production and distribution at any time. NFA head Arief Prasetyo Adi once stated that he would develop a public dashboard that presented national food data in supplies of various commodities.

Coordinating Minister for the Economy Airlangga Hartarto said last week that the Russia-Ukraine war had also affected the Indonesian economy, at least in the food and energy sectors. The government was still absorbing the impact of rising global commodity prices through fiscal policies, by increasing subsidies to maintain purchasing power and other measures.

"In the short term, social protection policies need to be strengthened to maintain the buying power of the poor and the lower middle class," said Airlangga.

Fertilizers

Domestic fertilizer supplies also need attention, because some raw materials are still imported. In fact, fertilizer is closely related to agricultural production.

KOMPAS/P RADITYA MAHENDRA YASA

Several types of factory-produced fertilizers are used by farmers in Kumpulrejo Village, Kaliwungu District, Kendal Regency, Central Java, Tuesday (3/3/2020).

PT Pupuk Kalimantan Timur (PKT) president director Rahmad Pribadi said in a written interview with Kompas that, as the largest urea producer in Southeast Asia, PKT had implemented a mitigation strategy in response to the increasingly dynamic global petrochemicals market. The global price of natural gas was expected to rise significantly as a result of the energy crisis in Europe. The price hike was also triggered by a ban on fertilizer exports by the government of China, one of the world's major suppliers of phosphate.

Besides supply chain innovation, the PKT, together with PT Pupuk Indonesia, was also securing its supply of raw materials and exploring alternative suppliers of raw materials in several countries.

"Like last June, together with the Agriculture Ministry and through PT Pupuk Indonesia, we signed a memorandum of understanding with Jordan Phosphate Mines Company [JPMC], a Jordanian company, for the supply of raw materials for phosphate [fertilizer]," said Rahmad. (XTI/DIT)

(This article was translated by Hyginus Hardoyo)