STRATEGY AND POLICY TO STRENGTHEN NATIONAL FOOD

SECURITY: LESSON FROM INDONESIA

Tahlim SudaryantoTahlim Sudaryanto

Expert Group Meeting on “Achieving Food Security in Member Countries in Post-Crises World”, Islamic Development Bank,

Jeddah, Saudi Arabia, 2-3 May 2010

Indonesian Center for Agriculture Socio Economic and Policy Studies (ICASEPS)Economic and Policy Studies (ICASEPS)

OUTLINEOUTLINE

1. Introduction2 Current Status of Food Security2. Current Status of Food Security3. National Food Security Strategy 4. Conclusion and Implication

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INTRODUCTIONINTRODUCTION

E i i di t 2000 2009Economic indicators 2000-2009• GDP growth 5.1 %GDP growth 5.1 %• Agriculture GDP growth 3.3%• Inflation rate 6.2%• Unemployment 9 2%• Unemployment 9.2%• Poverty 32.5 million (14.2%) in 2009

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INTRODUCTION (cont’d)INTRODUCTION (cont d)

• Food-fuel-financial crises in 2007-2008• Impact to food security of the poor• Need to strengthen National Food Security• Need to strengthen National Food Security

Strategy (NFSS)

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CURRENT STATUS OF FOOD SECURITY

• Production and availabilityy• Distribution and accesibility

C ti d t iti• Consumption and nutrition

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Production and Availability

G th i d ti

Production and Availability

Growth on rice production 1970-1980 : 4 37 % 1970-1980 : 4.37 % 1980-1990 : 4.30 % 1990-2000 : 1 40 % 1990-2000 : 1.40 % 2000-2006 : 0.80 % 2007 : 4 76 % 2007 : 4.76 % 2008 : 5.46 % 2009 : 6 64 % 2009 : 6.64 %

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Determinants of rice production in 2007-2009

a. Good weather condition;b Hi h i ib. High rice price; c. Government policies on input subsidies, p p ,

price incentive, and import control;d Special program to accelerate riced. Special program to accelerate rice

production.

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Production of other food commodities, 2004-2009 (thausand ton)

P d i G h G hCommodities

Production Growth(%)

'04-'09

Growth(%)

'08-'092004 2005 2006 2007 2008 2009

1. Maize 11 225 12 524 11 609 13 288 15 860 17 592 9.80 10.92

2. Soybean 723 808 748 593 761 973 7.96 27.86

3. Cassava 19 425 19 321 19 987 19 988 20 834 22 029 2.58 5.73

4. Sugar 2 052 2 242 2 307 2 624 2 801 3 341 10.38 19.28

5. Vegetables 9 060 9 102 9 564 9 941 10 234 10 531 3 62 2.94

6. Fruits 14 348 14 787 16 171 17 352 19 279 21 419 7.34 11.11

7. Beef 391 236 262 346 465 400 4.77 -13.98

8. Poultry 1 193 1 084 1 205 1 268 1 250 1 658 7.69 32.64

9. Egg 1 107 1 052 1 204 1 297 1 416 1 525 8.02 7.7

10.Fish 6.120 6.870 7.395 7.608 8.107 8.342 6,56 2,88

Import of major food commodities, 2003-2008 (thousand ton)

No Commodities 2003 2004 2005 2006 2007 20081 Rice 1 438 246 195 400 1 397 2982 Maize 1 371 1 115 235 1 845 772 4673 Soybean 2 774 2 882 2 983 3 279 1 441 1 1814 Sugar 1 271 635 1 347 995 3 088 1 099 5 Wheat 3 948 4 963 5 029 5 137 5 304 5 1246 Beef 84 94 110 117 185 467 Milk 648 732 747 707 757 153 7 6 8 73 7 7 707 757 53

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Availability of energy and protein for consumption

P t i ( / /d )

2003-2008

Year Energy(kcal/cap/day)

Protein (gram/cap/day)Crop Animal Total

2003 3 082 63.3 12.2 75.52004 3 005 63.2 13.1 76.32004 3 005 63.2 13.1 76.32005 2 912 64.5 12.3 76.82006 2 932 64 5 13 3 77 82006 2 932 64.5 13.3 77.82007 3 040 66.2 14.5 80.72008 3 145 69.0 14.6 83.3

Growth (%) 0.42 1.65 3.34 1.93

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Distribution of subsidized rice (Raskin) to poor household, 2002-2007

YearTotal poor

household ( illi )

Distribution% to total poor

HHRice Poor HH(million) HH(million ton) Poor HH

2002 15.1 2.2 12.3 81.52002 15.1 2.2 12.3 81.5

2003 15.8 2.0 11.8 75.1

2004 15.8 2.1 11.5 73.0

2005 15.8 2.0 11.2 71.0

2006 15.5 1.3 12.7 87.6

2007 19.1 1.7 16.7 87.6

Trend on food consumption 2005 2009Trend on food consumption, 2005-2009

DescriptionConsumption

2005 2006 2007 2008 2009Energyy(kcal/cap/day) 1996 1927 2015 2038 1927(kcal/cap/day)Protein(gram/cap/day) 55.27 53.66 57.65 57.43 54.35(gram/cap/day)IDP Index 77.5 74.9 82.8 81.9 75.7

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NATIONAL FOOD SECURITY STRATEGY

PREVIOUS AND CURRENT POLICY

Increase safety net program1. Subsidized rice (at 70% price subsidy,

15kg/month/HH);2. Cash transfer (Rp.100 000/month/HH);3. Free health care;4. Subsidized education costs, especially for

primary and secondary schoolp y y

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NATIONAL FOOD SECURITY STRATEGY (Cont’d)

Stabili e food p iceStabilize food price1. Reduce import tariffs;2. Reduce value added taxes;3. Special market operation, especially for

rice and cooking oil;4. Subsidize soybean price for small scale

processors;5. Subsidize fuel price for small scale food

processors.

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NATIONAL FOOD SECURITY STRATEGY (Cont’d)

A l t f d d tiAccelerate food crop production Irrigation infrastructure; Good quality seed at subsidized price; Subsidized fertilizer;

d b d d Farm credit at subsidized interest rate; Intensive extension services;

l h Farm gate price along with procurement; Promote private sector investment

(Gov Reg No 18/2009)(Gov.Reg.No.18/2009)

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NATIONAL FOOD SECURITY STRATEGY (Cont’d)

FUTURE PERSPECTIVESProblems and challenges:Problems and challenges:1. Persistence of small farm;2 Di ifi i h l l2. Diversification change slowly;3. Over intensification;4. Increasing public spending;5 Decentralisation policy5. Decentralisation policy.

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NATIONAL FOOD SECURITY STRATEGY (Cont’d)

Objectives:a Enhance food availability based on locala. Enhance food availability based on local

resources; b. Improve access to food for all household

in all region; gc. Increase quantity and quality of food

consumption for a better and balanceconsumption for a better and balance diet

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NATIONAL FOOD SECURITY STRATEGY

Targets:(Cont’d)

Targets:1. Achievement of food availability: energy

consumption 2200 kcal/capita/day, protein consumption 57 gram/capita/day, p p g p y,maximum import 5%;

2 Stable prices=>price margin between2. Stable prices=>price margin between harvest and non-harvest period maximum of 10%;

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NATIONAL FOOD SECURITY STRATEGY

Targets:(Cont’d)

Targets:3. Reduce poverty incidence by 1%/year

=> 50% decline in 2015 or 8%;4 Diversified and balanced diet: energy4. Diversified and balanced diet: energy

2000 kcal/cap/day, protein 52 gr/capita/day, sufficient micro nutrient, and IDP index close to 100.

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NATIONAL FOOD SECURITY STRATEGY

Policy and strategy:(Cont’d)

Policy and strategy:1. Enhance food availability with self-

relience principlerelience principle2. Increase household capacity to

access adequate food3. Increase quantity and quality of food3. Increase quantity and quality of food

consumption to achieve a better diet4 Improve Communities Nutrition Status4. Improve Communities Nutrition Status5. Improve Food Quality and Safety

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CONCLUSION AND IMPLICATIONCONCLUSION AND IMPLICATION

1. Production of staple food shows a strong growth=>huge government investment on infrastructures, input subsidies, price support, R&D, extension;

2. Short-term policy responses to food crises:a. stabilize staple food prices by accumulatinga. stabilize staple food prices by accumulating

stock;b implement broader safety net programb. implement broader safety net program.

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CONCLUSION AND IMPLICATION (cont’d)CONCLUSION AND IMPLICATION (cont d)

3 Medium-term and long-term policy responses:3. Medium-term and long-term policy responses: accelerate food production.

4 Sustainable food security strategy: income4. Sustainable food security strategy: income security first, FS come later.

d f d h h l5. Promote diversification toward high value commodities.

6. Increase investment on infrastructures, R&D, strengthen farmer’s institution.

7. Reallign strategy of international communities.

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