Indonesian Food Trade Policy during Covid-19

Abstract

The Covid-19 outbreak has brought concerns on food security around the world, including in Indonesia due to disruptions in production and the supply chain. The global cereal market in 2019/2020 is expected to remain well supplied (FAO, 2020). Similarly, the Indonesian Ministry of Agriculture (2020) has claimed that rice supply will last until August, with expected harvest of 12.4 million tons between March to May. However, Indonesia is experiencing a shortage of other food commodities such as garlic, beef, and sugar, which are particularly important during Ramadan.

Assessing Impacts of COVID-19 on Agricultural Production and Food Systems in the World and in Turkey

“…Therefore, delayed or disrupted harvests both led to a loss in farm or labour income and they also presented problems for food security (Seleiman et al, 2020). For example, while the agricultural labour contraction expected for Indonesia in 2020 was 4,87 %, the expected loss in domestic agricultural supply was 6,20 % (Amanta & Aprilianti, 2020). This signifies that the loss in value of products is more than the loss of labour income.…”

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“…Furthermore, the simplification Int J Oil Palm of PSR procedure also might give advantage by living allowance disbursement (JADUP, jatah hidup) as relief upon the farmers who are at high risk. Other forms of assistances are food stamp or direct cash transfer as a buffer to anticipate food price inflation that has been predicted by Amanta and Aprilianti (2020). Other than those mentioned above, growers might still generate income by make the most of its land for intercropping, especially by planting cash crops.…”

“…Indonesia as the fourth most populous country was one of highly impacted nation that prone to virus contraction (Djalante et al 2020). The disruptive economy caused by the viral diseases has hampered the country's food sectors (Amanta and Aprilianti 2020). They projected that Indonesian employment in agriculture and domestic agricultural supply would be contracted by respectively 4.87% and 6.2%.…”

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“…Small-scale settler communities cultivating short-lifecycle food crops and staples serving local markets are likely to be less adversely affected, because demand for their output is relatively inelastic and close market proximity means they are better placed to respond to changes in local demand by rapidly switching production. To date, prices of such crops are indeed remaining relatively stable (Lucas, 2020), although some increases are anticipated (e.g., Amanta & Aprilianti, 2020). For such producers, the greater problem may be changes in the price of agricultural inputs (e.g., fertilisers) and other imported goods.…”