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Economic Sovereignty Problem. (Indonesia's Import Dependency). -…
Economic Sovereignty Problem. (Indonesia's Import Dependency).
Background:
Rice is more than just a staple food in Indonesia; it is a cultural symbol and an integral part of the national identity. For centuries, rice cultivation has been the backbone of Indonesian agriculture, especially in Java and Bali, where terraced paddy fields dominate the landscape.
The government has long prioritized rice production, understanding its importance in ensuring food security and political stability. However, despite these efforts, Indonesia has struggled to achieve self-sufficiency in rice production.
Cause:
During periods of low production due to unfavorable weather conditions, such as droughts or floods, the government has often resorted to importing rice to meet domestic demand.
Solution:
One potential solution is to diversify Indonesia’s agricultural sector and reduce the country’s reliance on rice as the primary staple food.
The government has already introduced initiatives to promote the consumption of alternative staple foods, such as cassava, maize, and sweet potatoes, which are more drought-resistant and less resource-intensive to produce.
By encouraging a shift in dietary preferences, Indonesia could reduce its dependence on rice and ease the pressure on domestic rice production.
What is Import Dependency?
The economic characteristic of a country that cannot produce enough goods and services to sustain its citizens and must depend on importing the majority of its forms of sustenance.
Effect:
Negative impact on local farmers. Many Indonesian rice farmers operate on a small scale, with limited access to modern technology and financing.
This has resulted in significant financial losses for farmers, many of whom are already struggling with low productivity and high production costs.
This has led to a cycle of dependency on imports, with little progress being made toward achieving true self-sufficiency
What is Economic Sovereignty?:
What is Economic Sovereignty?: Economic sovereignty refers to a country's ability to independently make decisions and policies regarding its economic affairs without undue external influence or control.
Background of the Import Dependency problem in Indonesia.
In the past five years, rice production has been declining despite efforts to expand land outside Java, and the reality is that last year (2023)we still imported around 2.4 to 3 million tons of rice. This year it will also be 3 million tons or even more
The reality is that last year (2023) we still imported around 2.4 to 3 million tons of rice. This year it will also be 3 million tons or even more
source:
https://moderndiplomacy.eu/2024/10/02/indonesias-rice-import-paradox-persistent-importation-despite-immense-fertile-lands/