World Food Prices Rise, Head Of Badanas: Maximize Domestic Production

Head of the National Food Agency Arief Prasetyo Adi. (Photo: Mery Handayani/VOI)

JAKARTA Food prices in the international market have recently increased. At the same time, the rupiah exchange rate against the United States (US) dollar weakened and exceeded the level of Rp. 16,400.

Referring to data at The FAO Food Price Index (FFPI), in May 2024 the food price index rose 1.1 points to 120.4 points.

In the previous month, the index was recorded at 119.3 points. Meanwhile, in early 2024, the index was still at 117.7 points.

For your information, FFPI is a measurement of monthly price changes in the international scope for a number of food commodities.

This index consists of a mean price of five commodities, including contracts, vegetable oils, dairy products, meat, and sugar.

Head of the National Food Agency Arief Prasetyo Adi also highlighted this condition. He encouraged an increase in staple food production sourced from within the country.

"We have to focus on domestic production. It's time for us to increase production. Moreover, the dollar exchange is currently high, above Rp. 16,400 per dollar. We really want the economic effects of importing not only in partner countries, but back again to Indonesia," he said in an official statement, in Jakarta, Wednesday, June 26.

According to Arief, Indonesia will be safe if every month it can plant more than 1 million hectares of rice fields. He said, this amount is equivalent to 2.5 million rice.

"Furthermore, we just have to intensify, how much do you want to increase the average production per hectare. Then add extensification, this of course requires agricultural technology infrastructure. Pascapanen also needs to be prepared. Increasing production is very possible," said Arief.

Arief said, if the increase in domestic production was successfully implemented, of course the government could further strengthen the Government's Food Reserve (CPP) stock.

According to him, under any conditions, the number of CPP stocks must always be able to support various government intervention programs to the market and society.

"So the National Food Agency certainly prepares CPP, both from within and outside the country. This is all for the sake of CPP. So why do we import it, it's solely for CPP. But importation does not have a bad effect on the price of our farmers, because the government continues to monitor and maintain it at all levels of our supply chain, both in producers, traders, and consumers," said Arief.