JAKARTA LIFE'S STYLE
Coordinating Minister for Economic Affairs Hatta Rajasa said climate change and oil price fluctuations would pose the biggest challenge for the Indonesian economy in 2011."Global climate change will affect food and energy," he said at a new year press conference here on Monday. He said the government had taken various policies to anticipate threats in the food sector in 2011.
"The government would continue stabilizing the price of food through market operations and increase stocks," he said.
He said the government would in the near future issue two presidential instructions relating to food price stabilization efforts. One of the presidential decrees would give flexibility to the National Logistics Agency to procure rice and the other one to the agriculture minister to take actions to overcome the impact of climate change such as with regard to fertilizer and seed supply.
In the field of energy the government would promote energy diversification by promoting the use of natural gas in transportation means.
"Economization in fuel consumption would also be done. So efforts will be made not only in the supply but also in the demand side," he said. He stated fuel subsidy would still continue but it would be aimed at the right targets. "Limiting fuel consumption is a must while raising a fuel price is not an option," he said.
Agriculture minister Suswono meanwhile said several countries especially Thailand and Vietnam have issued a warning that they would reduce exports of rice which will certainly spur international price of rice.
"However if our rice production could reach 68.8 million tons it will not be necessary for us to import rice." He said rice varieties would be provided according to the weather conditions to anticipate the impact of climate change, adding there are varieties that are suitable for land which has high and low content of water.
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