Several industries and sectors of our economy have been deregulated in the past, with positive results. For example, the deregulation of the telecommunications sector from 1999-2004 succeeded in encouraging healthier competition, which in turn benefits the consumers. The telecommunications industry in Indonesia is also known to be adaptive to technological developments and changes in the global market environment.
So, if formulated properly and without vested interest, deregulation of the food and agriculture sector can be a way out to increase our resilience in facing the food crisis threat. But of course, deregulation alone is not enough.
Food security and diplomacy dilemma
The potential food crisis cannot be underestimated. Currently, wheat is Indonesia’s largest imported food commodity. Domestic production is almost non-existent, meaning that we are 100 percent dependent on imports. Wheat is widely used in the production of people’s favorite foods, such as noodles, bread, cakes and so on. Supply shortages or rising prices will directly hit the people.
Deregulation could pave the way to diversify sources of wheat imports so it doesn’t just come from our traditional trading partners. But is the country ready to carry out a diplomatic strategy that is more adaptive to ensuring its food security? Is our diplomatic strategy ready to be more proactive in maintaining price stability for essential food commodities? The fact is, during the Russia-Ukraine war which has lasted for three months now, Indonesia has yet to take any strategic economic diplomacy to secure its national interests. Indeed, there have been attempts to activate free-trade agreements with Eurasian countries which includes Russia. However, these efforts are limited in scope and even tend to be covered up.
Read: Mission Impossible: The cooking oil securitization
If the dilemma between food security and international diplomacy is not dispelled soon, we will miss the opportunity to take advantage of any global development. Our priority should be the interest and welfare of the Indonesian people, in which to this end we should be more assertive in the food and agriculture policymaking because that’s the only thing that will save our nation when the world is hit by rising protectionism and political and economic polarization. (Harryadin Mahardika)