Wheat Supply From Ukraine Disrupted Due To Russian Invasion, Indonesia Must Find Other Countries

Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira. (Photo: Doc. Antara)

JAKARTA - It is feared that Russia's invasion of Ukraine could threaten world food security. This is because Ukraine is a major supplier of food in the world, including wheat for Indonesia. The impact of the Russian invasion of Ukraine will disrupt the supply of wheat to Indonesia. Therefore, Indonesia must look for other countries to supply its domestic wheat needs.

Based on data from the Ministry of Trade, it is noted that Indonesia's imports from Ukraine will reach 1.04 billion US dollars in 2021. Almost all of them are non-oil and gas. Indonesia also depends on about 30 percent of imported wheat from Ukraine.

Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said that the current situation is quite critical for wheat. Because the price of wheat increased 13 percent in the past month due to Russia's invasion of Ukraine.

Therefore, said Bhima, to anticipate the disrupted supply of wheat from Ukraine, food and beverage producers must immediately look for other countries to supply wheat to the country in order to avoid the increase in wheat derivative products.

"Because wheat has become part of the basic needs of people in Indonesia, the role of the government and Bulog is important to help and facilitate importers to find countries that are ready to supply wheat. The Ministry of Trade is also expected to facilitate these wheat importers to be able to secure prices," he said when contacted by VOI, Friday, February 25.

Apart from Ukraine, according to Bhima, there are several other wheat-producing countries including Australia, the United States, and China.

"This must be done immediately and enter into a long-term contract so that supply and price stability can be guaranteed," he said.

According to Bhima, one of the wheat-derived products whose price will increase is instant noodles. In the short or long term, there will be price adjustments at the consumer level related to products derived from processed wheat, in this case instant noodles.

"The problem is that not all consumers are ready for price increases. Moreover, the price increase of Rp. 500 to Rp. 1,000 for instant noodles, of course, many people from the lower middle class will be affected," he explained.

For your information, Ukraine is included in the top five wheat exporters in the world along with Russia, the United States, Canada and France. In 2021/2022 Ukraine's wheat exports will reach 60 million tons.

Not only Indonesia, which depends on 30 percent of wheat imports from Ukraine, Middle Eastern countries also depend on Ukrainian wheat. For example, Egypt is one of the main buyers of Ukrainian wheat.