Ministry moves to tackle global food price hike impact

Jakarta (ANTARA) – The Trade Ministry has taken strategic steps to handle the rise in global food prices, which is affecting national commodities, Domestic Trade Director General at the ministry Isy Karim said when contacted by ANTARA on Thursday.

The effort to control domestic prices is a major undertaking carried out collaboratively by institutions. The National Food Agency has also been formed as part of food price stabilization and the government’s food reserves integration effort.

“In relation to the risk of international commodities price hike, especially those currently driven by El Niño, the government has conducted various mitigation efforts,” he said here.

In terms of production, the government has increased the production of food and strengthened the national food reserves through the National Food Agency, he added.

In terms of import policy, the government is utilizing a time-and-quantity-accurate strategy, but it is continuing to prioritize domestic production.

“As an anticipatory step and to increase rice reserves, the government has decided to increase supply from abroad by two million tons,” he informed.

Meanwhile, from the export standpoint, the government has decided to return the cooking oil domestic market obligation (DMO) target to 300 thousand tons per month.

The target was initially raised to 450 tons per month during the Ramadhan-Eid period in order to prevent scarcity and price hikes.

Moreover, the ministry has also disbursed export rights deposits gradually and carried out multiplier as well as incentive adjustments.

“This policy mix is intended to have the CPO (crude palm oil) export undisturbed and to ensure adequate domestic cooking oil supply,” Karim noted.

On May 5, 2023, the Food and Agriculture Organization (FAO) reported that the global food price in April experienced a hike for the first time in a year.

The April rise reflected a higher price for sugar, meat, and rice, which matched the decline in the cereal, milk, and vegetable oil price index. 

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