1. STRATEGY AND POLICY TO
STRENGTHEN NATIONAL FOOD
SECURITY: LESSON FROM INDONESIA
Tahlim 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)

2. OUTLINE
1. Introduction
2.
2 Current Status of Food Security
3. National Food Security Strategy
4. Conclusion and Implication
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3. INTRODUCTION
Economic indicators 2000 2009
E i i di t 2000-2009
• GDP growth 5.1 %
• Agriculture GDP growth 3.3%
• Inflation rate 6.2%
• Unemployment 9 2%9.2%
• Poverty 32.5 million (14.2%) in 2009
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4. INTRODUCTION (cont’d)
(cont d)
• Food-fuel-financial crises in 2007-2008
• Impact to food security of the poor
• Need to strengthen National Food Security
Strategy (NFSS)
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5. CURRENT STATUS OF FOOD SECURITY
• Production and availability
y
• Distribution and accesibility
• C
Consumption and nutrition
ti d t iti
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6. Production and Availability
Growth on rice production
G th i d ti
 1970-1980 : 4.37
4 37 %
 1980-1990 : 4.30 %
 1990-2000 : 1.40
1 40 %
 2000-2006 : 0.80 %
 2007 : 4.76
4 76 %
 2008 : 5.46 %
 2009 : 6.64
6 64 %
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7. Determinants of rice production in
2007-2009
a. Good weather condition;
b. High i
b Hi h rice price;
i
c. Government policies on input subsidies,
p p ,
price incentive, and import control;
d.
d Special program to accelerate rice
production.
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8. Production of other food commodities,
2004-2009 (thausand ton)
Production
P d i Growth
G h Growth
G h
Commodities (%) (%)
2004 2005 2006 2007 2008 2009 '04-'09 '08-'09
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

9. Import of major food commodities,
2003-2008 (thousand ton)
No Commodities 2003 2004 2005 2006 2007 2008
1 Rice 1 438 246 195 400 1 397 298
2 Maize 1 371 1 115 235 1 845 772 467
3 Soybean 2 774 2 882 2 983 3 279 1 441 1 181
4 Sugar 1 271 635 1 347 995 3 088 1 099
5 Wheat 3 948 4 963 5 029 5 137 5 304 5 124
6 Beef 84 94 110 117 185 46
7 Milk 6 8
648 73
732 7 7
747 707 757 153
53
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10. Availability of energy and protein for consumption
2003-2008
Energy Protein (
P t i (gram/cap/day)
/ /d )
Year
(kcal/cap/day) Crop Animal Total
2003 3 082 63.3 12.2 75.5
2004 3 005 63.2 13.1 76.3
2005 2 912 64.5 12.3 76.8
2006 2 932 64.5
64 5 13.3
13 3 77.8
77 8
2007 3 040 66.2 14.5 80.7
2008 3 145 69.0 14.6 83.3
Growth (%) 0.42 1.65 3.34 1.93
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11. Distribution of subsidized rice (Raskin)
to poor household, 2002-2007
Total poor Distribution
% to total poor
Year household Rice
Poor HH HH
(million)
( illi ) (million ton)
2002 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

12. Trend on food consumption, 2005 2009
consumption 2005-2009
Consumption
Description
2005 2006 2007 2008 2009
Energyy
1996 1927 2015 2038 1927
(kcal/cap/day)
Protein
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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13. NATIONAL FOOD SECURITY STRATEGY
PREVIOUS AND CURRENT POLICY
Increase safety net program
1. 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 school
p y y
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14. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
Stabilize
Stabili e food p ice
price
1. 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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15. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
Accelerate f d crop production
A l t food d ti
 Irrigation infrastructure;
 Good quality seed at subsidized price;
 Subsidized fertilizer;
 Farm credit at subsidized interest rate;
d b d d
 Intensive extension services;
 Farm gate price along with procurement;
l h
 Promote private sector investment
(Gov.Reg.No.18/2009)
(Gov Reg No 18/2009)
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16. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
FUTURE PERSPECTIVES
Problems and challenges:
1. Persistence of small farm;
2.
2 Diversification change slowly;
Di ifi i h l l
3. Over intensification;
4. Increasing public spending;
5.
5 Decentralisation policy.
policy
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17. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
Objectives:
a.
a Enhance food availability based on local
resources;
b. Improve access to food for all household
g
in all region;
c. Increase quantity and quality of food
consumption for a better and balance
diet
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18. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
Targets:
1. Achievement of food availability: energy
consumption 2200 kcal/capita/day,
p
protein consumption 57 gram/capita/day,
p g p y,
maximum import 5%;
2. Stable prices=>price margin between
2
harvest and non-harvest period
maximum of 10%;
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19. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
Targets:
3. Reduce poverty incidence by 1%/year
=> 50% decline in 2015 or 8%;
4. Diversified and balanced diet: energy
4
2000 kcal/cap/day, protein 52
gr/capita/day, sufficient micro nutrient,
and IDP index close to 100.
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20. NATIONAL FOOD SECURITY STRATEGY
(Cont’d)
Policy and strategy:
1. Enhance food availability with self-
relience principle
2. Increase household capacity to
access adequate food
3. Increase quantity and quality of food
consumption to achieve a better diet
4.
4 Improve Communities Nutrition Status
5. Improve Food Quality and Safety
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21. CONCLUSION 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 accumulating
stock;
b.
b implement broader safety net program.
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22. CONCLUSION AND IMPLICATION (cont’d)
(cont d)
3.
3 Medium-term and long-term policy responses:
accelerate food production.
4.
4 Sustainable food security strategy: income
security first, FS come later.
5. Promote d diversification toward high value
f dh h l
commodities.
6. Increase investment on infrastructures, R&D,
strengthen farmer’s institution.
7. Reallign strategy of international communities.
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23. ICASEPS