REPUBLIKA.CO.ID, JAKARTA -- Deputy Director of the Institute for Development of Economics and Finance (Indef) Eko Listiyanto asked the new government in 2024 election results to optimize the food sector as a foundation for boosting economic growth in the future.
“If we want our economy to grow better, one of the drivers is food,” Eko said during Indef's public discussion “The Dynamics of Lebaran and the Economic Direction of Prabowo-Gibran” in Jakarta on Tuesday (26/3/2024).
Moreover, he added, the visions of the elected candidate Prabowo Subianto-Gibran Rakabuming Raka sufficiently highlight the narrative of agriculture and food as an effort to boost the domestic economy. Eko noted that there are factors that are difficult to control in the food sector, such as El Nino. However, he believes there are many factors beyond El Nino that the government can control and optimize.
“If the strategy just continues, it will be difficult to reach 6-7 percent, because the Jokowi government's track record is 5 percent. So it's kind of hard to talk in the context of today's reality. But, if we can improve our food security going forward, at least there is an improvement in purchasing power,” Eko explained.
By strengthening the food sector, Eko is optimistic Indonesia can be more resilient in the face of economic turmoil. From the external side, for example, Indonesia does not have to worry about being depressed by India's stance of halting rice exports.
On the domestic side, the country can maintain food prices amid soaring demand and limited supply at certain moments, such as Ramadan and Eid al-Fitr.
He also highlighted the condition of the middle class which is particularly vulnerable with fluctuations in food prices, as this group receives the impact of price increases but does not receive as much help as poor groups.
“Even if there is a salary increase, it will still be eaten up by price increases. So that if I discuss the way out to improve the economic situation, I push to improve the food sector,” he said.
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