Indef: New Government Must Optimize Food Sector

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Director of the Institute for Development of Economics and Finance (Indef) Eko Listiyanto asked the new government as a result of the 2024 General Election to optimize the food sector as a basis for increasing future economic growth.

"If we want our economy to grow better, one of the things that is encouraged is food," said Eko during an Indef public discussion "The Dynamics of Eid and the Direction of the Prabowo-Gibran Economy" in Jakarta, quoted from Antara, Wednesday, March 27.

Moreover, he continued, the vision and mission of the elected candidate pair Prabowo Subianto-Gibran Rakabuming Raka simply highlighted the narrative about agriculture and food as an effort to encourage the domestic economy.

Eko agrees that there are factors that are difficult to control in the food sector, such as El Nino. However, he believes there are many factors outside El Nino that can be controlled and optimized by the government.

If the strategy only continues, it will be difficult to reach 6-7 percent, because the Jokowi administration's track record is at 5 percent. So it's a bit difficult to talk about today's reality context. But, if we can improve from our food security in the future, at least there will be improvements in terms of purchasing power," explained Eko.

By strengthening the food sector, Eko is optimistic that Indonesia can be more resilient in dealing with economic turmoil. From an external perspective, for example, Indonesia does not need to worry about being depressed by India's attitude to stop rice exports.

Meanwhile, from the domestic side, the state can maintain food prices in the midst of soaring demand and limited supply at certain moments, such as the moment of Ramadan and Eid al-Fitr.

He also highlighted the condition of the middle class which is very vulnerable to fluctuations in food prices, because this group received the impact of rising prices but did not receive much assistance such as poor groups.

Even though there is an increase in salary, it will still be consumed by price increases. So if it is narrowed about how to get out to improve the economic situation, I encourage to improve the food sector," he said.