An Overview of the Impacts of World Trade in Indonesia Food Security

The impact of world trade for Food Security in the country has become an interesting topic to discuss in our world today. There are the positive and negative impacts of world trade liberalization to Indonesia local products. However, the world trade liberalization will carry on whether Indonesia is ready or not. Assuming that Indonesia is ready to face it, we may bear in mind about the positive advantages which Indonesia can get from this trade liberalization. For instance the world trade liberalization may possible increase the economics of scale, intensity and capitalize the international capital flow and finally providing a good environment for transfer of technology. More specifically, the world trade liberalization is also offering a big opportunity for the Indonesian food commodities. All of the positive impact is only reasonable if Indonesia is ready in facing the world trade. If Indonesia is not ready and unprepared in facing world trade then there would be negative impact. Specifically, one of the negative impacts is for Indonesian local product. The incapability of Indonesian local products and food commodities to compete in the global market trade. This condition could threaten Indonesia local products. That indirectly will be threaten Indonesia food security. There should be development strategy of Indonesian local commodities in facing the world trade liberalization. The development of strategy focus on several aspects, such as improvement of productivity, establishment of agro-industry, and etc. There needs to be considered is the power of government policy that is necessary to provide favorable circumstances for the expansion of Indonesian local products and food commodities. There should be good cooperation between governments, parties that have interest in private sectors, agri-business professionals, and all the citizens of Indonesia. (dita/ipb)

Reference:
Mardiyanti, N. 2005. An Overview of Indonesian Food Crops Facing The World Trade Liberalization. TUA Press : Japan.

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