The economic turmoil that first hit Indonesia in mid 1997 has left millions of people vulnerable to food insecurity, without enough money to buy sufficient food. Although the effects of the crisis were initially felt in urban areas because of job losses, they are now spreading to rural areas with increased migration. In some rural communities, population has increased up to 30 percent, putting severe pressure on services, increasing competition for scarce jobs and depressing wages.
Rural women appear to be particularly affected.
Most of the migrants are landless and have few savings or assets left. Indeed, more than half of the rural population is estimated to be landless, and the Report expects a sharp decline in the economic fortunes of these households and calls for careful monitoring of the food situation in rural areas. In addition to the severe economic problems, food supplies are also affected by poor security and growing civil unrest in some parts of the country. As about 70 percent of rice produced in Indonesia is traded, functioning markets are essential to food security in rural and urban areas. Although prospects for rice production in 1999 look good, with abundant rainfall and attractive producer prices, this is unlikely to dramatically improve the food situation of the vast majority of vulnerable people.