Celvin Moniaga Sipahutar, Jakarta – An economist recently said that disrupted food security – a situation in which the population could not access affordable rice – could worsen Indonesia's poverty rate.

Rice is a staple food in the archipelagic Indonesia. Its availability and affordability are instrumental to determining the country's poverty rate, according to Nailul Huda, an economist at the think-tank Center of Economic and Law Studies (Celios).

"Indonesia's poverty rate can increase if the people can no longer afford rice if their price soar," Nailul said Tuesday.

Higher food prices will also mean more money needs to be set aside to keep one's family fed, thus affecting the people's welfare. Recent surveys showed that people spent up to 26 percent of their total income on food. This marked a drastic increase as food used to only make up 19 percent of their spending, Nailul said. Such a situation will take a huge toll on middle-class groups as they are not included in government assistance programs.

"This will force the middle-class people to allocate more money for food rather than other goods. ... This will likely affect our household consumption," Nailul added.

The economist urged the government to make better use of the existing abundant food resources in the country. The government should also work on its food self-sufficiency program as a long-term solution to create food security, rather than solely relying on imports.

"Our import reliance is what causes us to be extremely susceptible to the global dynamics or the demands of the global food market," Nailul said.

Source: https://jakartaglobe.id/business/disrupted-food-security-can-worsen-indonesias-poverty-rat