Indef: Food self-sufficiency must be strengthened amid Indonesia-US trade agreement

Jakarta (ANTARA) - An economic observer has assessed that strengthening food self-sufficiency and food import management must be continually maintained amid the commitment to facilitate agricultural product imports under the Agreement on Reciprocal Trade (ART) between Indonesia and the United States valued at USD 4.5 billion.

“Policy instruments must encourage food self-sufficiency and efficient food distribution,” said Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (Indef), in an interview with ANTARA in Jakarta on Monday.

She stated that amid the trade cooperation, food policy instruments must remain oriented towards strengthening domestic production.

Esther assessed that increased productivity and distribution efficiency are key to ensuring that trade cooperation does not reduce the competitiveness of domestic farmers, but rather strengthens the foundation of national production.

“We can learn from the United States regarding its agricultural technology so that productivity can increase, meaning that in future we will not need to import as we will have achieved self-sufficiency and prices can become cheaper through efficient distribution,” she said.

Meanwhile, agricultural commodity imports from the United States are recorded at approximately USD 1.21 billion out of total imports in the same commodity group totalling USD 13.2 billion, or approximately 9.2 per cent.

Esther added that food policy must continue to prioritise the principle of meeting needs from within the country before implementing import policy.

“Meeting food needs must continue to be prioritised from the domestic sector so that it remains more controlled and transparent in its licensing and does not create rent-seeking practices,” she said.