Gisele Bundchen Launches New Lingerie Line in Brazil

Gisele Bündchen may be one of the highest paid models in the world, but that's just not enough for this mogul-in-the-making. Gisele just announced that she would be launching a new lingerie line with the Brazilian labe, Hope.

Her duties for the new label will include walking in their fashion show, appearing in print ads and designing panties and bras. After so many years modeling for Victoria's Secret this seems like the perfect job for the Brazilian bombshell.

The collection, prices from about $25 for panties and $60 for bras, is called Gisele Bündchen Brazilian Intimates and will hit Hope retailers on May 25. But it's only being sold in Brazil, so it looks like her American fans are out of luck.

15 Stars You Thought Were Latino—But Aren’t!

How can you tell if someone’s Latino? As our popular series on the stars you never knew were Latino points out, you can’t! It’s true that Latinos don’t fit into any one mold—we come in all shapes, sizes and complexions—but the same can be said of celebs who are not of the Latino persuasion. Here's a look at 15 celebs that people assume are Hispanic, but aren’t.

1.  Jennifer Esposito, 38

In Crash (2004), Paul Haggis’ Oscar-winning film about racial and social tensions in Los Angeles, Esposito played Ria, a Latina detective who has tense relationships with Asian and Black characters in the movie. But despite playing a proud Latina on screen (convincingly we might add!), Esposito is actually Italian American.


2.  Antonio Sabato Jr., 39

The hunky actor first rose to fame as a Calvin Klein underwear model and later, as fan favorite Jagger Cates on the long-running soap, General Hospital. While most people think of the toned and tanned actor as a Latin lover, Antonio was born in Rome, Italy to an Italian father and a Czechoslovakian mother, and he doesn't have Latin roots. Still, that hasn't stopped him from taking on Latino roles, like his role as Pablo Alesandro, an Argentinean Latin lover in the independent film, Testosterone (2003). 

3.  Maria Menounos, 33

This television correspondent (Today, Access Hollywood) and sometimes actress (One Tree Hill, Entourage), is 100% Greek, but she says people constantly mistake her for Latina. “Fred Berry (What’s Happening!!), said the only reason he came on to my first film — In the Land of Merry Misfits was because he thought I was Latina,” Menounos tells Latina.com. “Magazines and stars always thought I was Latina — everyone has thought this,” she adds.


4.  Daniel Sunjata, 39

Daniel Sunjata is best known for his role as the smoking hot Latino firefighter (and ladies man), Franco Rivera, on the hit FX series Rescue Me (2004-2010). But the multi-racial actor, who currently stars as Eli, a nurse who's a love interest for Miranda Bailey (Chandra Wilson) on ABC's hit show, Grey's Anatomy, is African-American, Irish and German.

5.  Lindsay Hartley, 33

Lindsay Hartley has played a Latina on three different soap operas. She played Theresa Lopez-Fitzgerald Crane, a working-class Latina in love with a rich man on the NBC soap Passions (1999-2008), starred as Ariana Hernandez on Days of Our Lives (2009-2010), and played Cara Castillo on All My Children (2010-2011). But despite her many Latina roles, Lindsay is not Latina — she’s part-Greek and part-Italian.

6.  Mark Salling, 28

In November of 2009, Wendy Williams asked Glee star Mark Salling point blank what his ethnicity is. “When I look at pictures of you, I’m very confused as to what your origin is — because you’re tan so I thought you were half Black and half White,” Wendy said. “Or I thought you had a little Hispanic in you. What is your ethnic origin?” Salling dodged Wendy’s question, saying: “Whatever you want me to be, Wendy.” While Salling refused to reveal his ethnic background, a rep for the actor tells Latina.com that even though Salling speaks Spanish (and sings in Spanish too) — the actor isn’t Latino.

7.  Michael Copon, 28

He played a proud Latino named Felix Taggaro, Brooke’s (Sofia Bush) love interest on the second season of the CW’s One Tree Hill, but Copon is the son of a Filipino father and a German-American mother.

8.  Katerina Graham, 21

“I wish!” That’s what Vampire Diaries star Katerina Graham said when we asked her if she’s part-Latina. Katerina’s father, Joseph, is African, and her mother, Natasha, is of Jewish (half Russian and half Polish) ancestry and she herself was born in Geneva, Switzerland. Earlier this year, Katerina played a Latina named Maria Ramirez in Universal Pictures' dance film, Honey 2 (a follow-up to the 2003 movie starring Jessica Alba).

9.  Chad Ochocinco, 33

There’s a reason people think Chad Ochocinco is Latino — well, actually, there are multiple reasons. In October of 2006, during Hispanic Heritage Month, Chad announced that he would prefer to be called “Ocho Cinco” (which means 8, 5 in Spanish) instead of by his last name, "Johnson." Two years later, the NFL star had his name legally changed from Chad Johnson to Chad Javon Ochocinco, making it abundantly clear to us that he was obsessed with Latino culture. His obsession has continued to this day, and in November of 2010, Chad got engaged to..wait for it...a Latina! — Puerto Rican Basketball Wives star, Evelyn Lozada.

10. Vin Diesel, 43

Vin Diesel has starred opposite several Latino stars in The Fast & The Furious franchise (Eva Mendes, Michelle Rodriguez, Jordana Brewster, etc), he spends most of his free time at his house in the Dominican Republic and he’s a close friend of President Leonel Fernandez — the current president of the DR. But Vin, who calls himself "definitely a person of color," has Italian and Black ancestry.

11. Carmen Electra, 39

Her former marriage to a Latino (Mexican guitarist Dave Navarro) aside, Carmen Electra isn’t Latina. The beautiful actress (Scary Movie), is of Irish, German and Cherokee ancestry.

12. Vanessa Minnilo, 30

This former Miss Teen USA might seem Latina to some (especially since she resembles Latina celebs like Eva Longoria and Daniella Alonso) but Mrs. Nick Lachey is part-Italian, part-Irish and part-Filipina.

13. Zachary Quinto, 34

Best known for playing the super powered psychopathic serial killer, Sylar on the NBC show, Heroes, Zachary Quinto’s Latino-sounding last name, combined with his tan skin, might make some think he’s Latino — but the actor is actually part-Italian and part-Irish.

14. Brooke Burke, 39

Brooke Burke is a mix of Irish, French and Portugese and she's Jewish on her mother's side, but the multi-ethnic actress isn't even part Latina.

15. Yasmine Bleeth, 42

When Yasmine Bleeth made a splash on Baywatch in 1993 — as Caroline Holden — a lot of people thought the stunning actress was Latina. Alas, her father is Jewish of Russian and German descent while her mother Carina was of French and Algerian descent.

Enrique Iglesias: "I Have the Smallest Penis in the World"

Someone get the folks over at the Guinness Book of World Records on the phone—Enrique Iglesias says he holds a world record!

At a recent concert in Melbourne, Australia, the dreamy Spanish singer—who loves to joke around with fans at his concerts—pulled a few brave male fans on stage to talk about their sex lives, and when one of the guys told Enrique that his handsome face must make him quite the accomplished lover in the bedroom, Enrique reportedly said: ‘"What does Spanish good looks have to do with the size of your penis? They're completely different things. Maybe I have the Spanish looks but I have the smallest penis in the world. I'm serious," he said.

WATCH: Enrique Iglesias' New Video for "Dirty Dancer" Feat. Usher & Lil’ Wayne!

A candid Enrique also revealed how he lost his virginity."I grew up with a lot of my friends and all of them lost their virginity with hookers," he said. "Not that there's anything wrong with that! They had to pay for it. I wanted to wait for the right girl so I waited until I was 25."

But a few minutes later, the singer confessed that he was kidding when he said he lost his virginity at 25. "I was nervous as s--t the first time,” he revealed. “"Usually the first time is not the best. Mine was in my mother's house. Let me be honest, I was actually 17 and a half… I was really nervous. It lasted ten seconds," he said.

Pitbull, Bruno Mars and Enrique Iglesias Confirmed for 'Today Show' Summer Concert Series!

And when one of the guys on stage said he lasted 10 minutes his first time, Enrique said, “S--t, I don't even last 8 minutes now."

If you like it when Enrique is this candid (and really, who doesn't?), then be sure to check out tonight's episode of VH1's Behind the Music: Enrique Iglesias, which will air on the cable network at 10 p.m. The episode will feature interviews with Enrique in which the singer talks about his sex life, his 10-year relationship with tennis superstar Anna Kournikova, and the rumors that have plagued him during his career.

Adorable Twin Toddlers Cover Bruno Mars "The Lazy Song"

Adorable Twin Toddlers Cover Bruno Mars "The Lazy Song"

Warning: Cuteness overload! Check out these ridiculously adorable baby twins singing and dancing almost completely in sync with Bruno Mars’s hit song “The Lazy Song.” In matching shirts and pants, twins Justin and Jeremy sing along with all the attitude and swagger necessary to fully embody the Puerto Rican singer's lazy day anthem.

Watch them in action below.

INDONESIA : CRISES, REFORM, GLOBALIZATION AND SMEs

A.    Introduction
The shake of monetary crisis that developed into the economic
and multidimensional crisis attacking, Indonesia, in the last five years
has increasingly made us aware of the role of small and medium
enterprises (SMEs) including co-operatives in our national life. We
are greatly indebted to the three pillars of the grass root economy
known  “as people economy”1, since the middle of  1997, when the
horrible crisis hit Asian including Indonesia. Since that we realised
that the government policies in the past emphasizing on the economic
growth  by  giving  various  facilities  as  well  as  indulgence  to  big
businesses so-called conglomerates resulted a lot problems and need
to be corrected.
The worsened Indonesia’s economic condition of 1997 beside by the sudden monetary crisis also due to long drought affected the agricultural sector. With the crisis that struck in the Asian region, SMEs  were  also  so  affected  that  resulted  to  weakening  of  their activities and capabilities to compete and grow. Though not worsened than big enterprises, the existence of SMEs is still better than the big one.  Compared  with  other  Asian  countries  such  as  South  Korea, Malaysia,  the  Philippines,  and  Thailand,  the  effect  of  crisis  in Indonesia seems likely the worst.
Furthermore,  the  most  severely  affected  countries,  namely Indonesia and Thailand real GDP growth has turned abruptly from over 7 per cent per annum to zero or negative. Indonesia experiences a free-fall from 8 per cent in 1996 to 4.6 per cent in 1997 and to minus 13 per cent in 1998. Since 1999, Indonesia has slowly recovered from the  crisis.  From  that  year,  the  growth  of  Indonesia’s  economy becoming  positive,  though  still  progressing  slowly.  Last  year, Indonesia’s economy has grown  3.5 per cent and this year is also predicted around that number.
The Asian financial crisis which has global character has also
influenced capital market, namely stock market and real estate market.
The fall in equity and other asset prices further depressed aggregate
domestic demand which in turn pushed down household consumption
expenditures  and  income.  Coupled  with  continuous  instability  in
exchange rate, the fall in asset values adversely affected the health of
banks  and  non-bank  financial  institutions.  The  implication  is  that
nonviable financial institutions had to be closed down.
In Indonesia, from around 235 banks available in the pre-crisis
period, the Central Bank closed down 16 private banks in November
1997. Other banks have been suspended in March 1998 and around 45
banks in April 1998 have been put under control and strict supervision
by a newly establishing government agency in charge of banking
reform so-called Indonesian Bank Restructuring Agency (IBRA). In
March 1999, 38 more banks have been closed down, 9 banks have
been  recapitalized  and  some  banks  have  been  put  under  strict
supervision. This process has been continued until recently. We are
hoping to have strong and viable bank institutions in the future.
The crisis has affected not only financial institutions, but also
real sectors, especially big companies and the state budget. In general,
as mentioned above, the crisis has brought about a contraction in
Indonesia’s economic growth, high inflation rate, the fall of Rupiah
value of almost 80 per cent against the US dollar, high interest rate
and bankruptcy of many private companies. This phenomenon has
also brought a social impact, characterized by the fall of real wages
and incomes, greater unemployment and the increase of poverty.

B.   SMEs And Economic Crisis
Small  and  Medium  Enterprises  (SMEs),  as  other  developed
countries recognise, have been notified as an engine of economic
growth, job creation, and vehicle for equal income distribution. In
addition, during the crisis hit Indonesia since the middle of  1997,
SMEs  showing  their  significant  role  to  the  growth  of  economy.
Particularly, in 2000 with the growth of 4.7 per cent is recognized
because of the role of aggregate consumption growth which reflect the
strong support of the small economic undertaking. The remaining
question is that whether the role of small and medium enterprises   in
Indonesia can be expected to be engine of growth in the long run.
Since the total numbers of SMEs are in particular very huge have contributed significantly to GDP and employment in particular, as well as their existence in all over regions of the country have made them  to  potentially  become  a  strategic  pillar  for  the  Indonesian economy through their products and services in distribution. They can also be powerful institutions for improving income distribution in the framework of effort to eradicate poverty.
Further  information,  total  number  of  SMEs  in  Indonesia
including micro enterprises in 2000 is predicted around 40 millions or
99.99 per cent of total establishments. Although nearly 39 million of
which or about 97 percent of small enterprises are micro enterprise
with an annual sales of less than Rp. 50 million. The coverage of SME
in Indonesia include all economic undertaking including agriculture
Therefore SME in Indonesia cover SMI and services plus agriculture
and extractive sector. They contribute not less than 55 per cent to total
Gross Domestic Product (GDP) and employee more than 74.3 million
workers or  99.4 per cent of the total available labor absorption in
2000. The agricultural sector has the largest employment provider
with the amount of 32 million workers or 42.9 per cent, followed by
trading, hotels, and restaurants in the amount of 18.4 million workers
or 24.7 percent.
SMEs in developed countries, like USA, Japan, Canada, and Italy, have become one of the backbones of their economy. In the early 90s in the European Union - excluding agriculture and fisheriesthere are 15.8  millions undertaking,  of which  99.9 per cent were SMEs  and  some  14.5 million  micro  enterprises  (0-9  workers),  of which 7 millions without any employee (Moussis, 1994).This finding support the argument that the existence of small and micro enterprises are not the transitory phenomenon.
SMEs presence in economic development is by reality in the
field that within the attack of horrible economic crisis the existence of
SMEs is prominently very strong because of flexibility and must for
survival. Our survey     shows that only 4% of SMEs has closed down
its activities, 31% has reduced its activities, 64% no-change, and 1%
even has been growing well particularly to those SMEs oriented in
agribusinesses and export oriented products  (such as clove, coffee,
cocoa,  and  the  fishery  products).  In 2001,  the  ADB  Technical
Assistant has also conducted a survey in Medan and Semarang to identify the impact of crisis to SMEs. Its survey shows that 78 per cent of SMEs saying that there is no strong impact of crisis to their businesses.
The process of recovery is appeared better over present and last
year give strong expectation that by the end of this year the aggregate
indicator of Indonesia’s economy will back into the level of pre crisis.
However   there   are   structural   shift   where   big   company   in
manufacturing  sector  will  remain  the  prime  contributor  on  value
added  formation  of  nearly  reach    19%,  while  crisis  hits  only
temporary. On the other hand the back bone of grass root economy
that is agricultural sector remain in the second place, but the increase
in share the GDP during 1998-1999 has over, and decline to the level
of pre crisis.  This evidence seem to support  that there will be a
continuing process of declining share of agricultural sector in GDP as
experienced during the period of pre crisis. For the purpose of looking
at effect and response of different size of enterprise is appear in figure
1. The figure indicate that the monetary crisis hit SE less and quick to recover while big business responded slower. The medium business level seems suffer longer than the other groups.


represented  by  small  enterprise  experienced  the  same  path  as
agricultural sector with its contribution to GDP remain above 11 %
although  has  declined  compared  with  its  contributions  during  the
crises of 1999. The big mining sector has survived and shift the role of
the SMEs in the trading sector to become the third contributor to
GDP, while services sector of big business has back to its position
during pre crisis.   The big business in the mining sector, electric and
gas has gained from the rationalization of subsidy by the government
through adjustment in prices paid by consumers. Therefore there are
big shifts in their contribution to GDP. The middle sector or medium
enterprise has worsened and can not be expected to be come the
engine of growth and locomotive for reform in the near future. Unless
there are significant effort to bring them into its competitive level.
The above analysis saying that SMEs can not be neglected in
economic development, though their contribution to export is still
very  low  compare  to  the  big  enterprises.  In 2000,  SMEs  had
contributed on export around IDR.438,853 billions, which is 2.94 per
cent contributions of small enterprises and 11.76 percent contributions
of medium enterprises. It means that contribution of SMEs in export
was only 14.7 percent and this was much smaller than contribution of
big enterprises which reached 85.3 percent. The lower performance of
the share of SMEs in export is partly due to the dominant role of oil
and gas and plantation agriculture products, which are belong to big
companies mainly state owned enterprises (Pertamina and PTP). On
the other hand exporting required better quality of services and evolve
high risks make limitation to SME to participate in.
When a comparison been made on the SME sectors for the
period  of 1997  representing  a  situation  of  pre  crisis  and 2000
representing the end of crisis (see table 1), there are several important
findings.  Firstly,  the  number  of  small  business  increase,  but  the
medium business decreases meaning that the crisis hit more on middle
class. Many finding suggest that grass root economy are not much
affected  by  the  crisis  and  ever  some  sector  enjoy  growth,  hence
Indonesia is essentially has been facing monetary crisis not economic
crisis (Mubyarto  2001).  Secondly,  relatively  contribution  of  small
sector to GDP is unstable since its dependence on agricultural sector
and service sectors which has lower value added per enterprise or per
worker. Thirdly, share in export has improved in small sector but
decline in the middle sector. Fourthly, the crisis hits the big sector
only temporary and the middle sector has been facing serious problem
at  all  levels  of  production,  finance  and  export.  Fifthly,  the
employment creation remain dependent on small sector constraint the
effort to improve productivity. These evidence suggest that the role
SMEs is more on the employment provider and temporary safe guard
rather than an engine of growth like what happening in other country.
If SMEs are expected to be an important to growth, employment and
export a comprehensive policy should be adopted
C.    Early Reform And New Economic Format

On  May    21,    1998  presidential  succession  has  occurred,
continued with the formation of a development reform cabinet. It is
the beginning of reform era, expected to be able to rectify various
matters  which  are  considered  in  contradictory  to  democratic
principles, people’s orientation and transparent implementation. The
first cabinet under Mr. B.J. Habibie as the President was not long
lasting.  However,  during  his  administration  many  fundamental
changes have been made. At least there are three important changes
that could be considered as a corner stone to the future democratic
Indonesia.  These  are: (1)  the  move  toward  democratization  thrue
democratic multi parties’ election, (2) enactment and implementation of the law on district autonomy or decentralization, and (3) reposition of central bank and the banking sector as an independent institution in relation with the government. The separation of fiscal responsibility and monetary authority brought significant impact on modalities of government support to certain sectors of economy such as agriculture. The reform has been kept continuing by the administration of Presiden Wahid and President Megawati by considering the necessary step to make the process of recovery can be speed up.
Learning from many countries’ experiences, people believe that our  SMEs  will  also  be  able  to  become  the  backbone  for  our economy. In order to achieve this mission, its feld the need to shift the paradigm of economic development. While in the past the emphasis our the achievement of aggregate economic growth led by supportive policy in favor of economic conglomeration. In the future, it should be a  broad  based  economy  by  strengthening  participation  of  people, promotion human dignity and self-reliance. The new economic policy will put emphasis on development at district level as the basis for economic development and resources-based-oriented industry as part of our commitment toward decentralization.
The  new  economic  format  is  aimed  at  creating  a  sound
economic  fundamental  based  on  market  friendly  system  with  the
necessary   regulations   to   prevent   SMEs   from   unfair   market
competition. Even though the new economic format seems to be in
favor or SMEs, it does not ignore the role of the big businesses,
because transparency on the rules of the games and independence
between political authority and economic activities will be the basic
principles for guiding economic policy in the future as being set out by law on banking, law on anti monopoly, bankruptcy etc. All of the said efforts is part of improving the consciousness on good corporate governance.
This  new  economic  paradigm  is  also  expected  to  spur  the
growth of SMEs in the country.  In our view medium enterprises
particularly, have a strategic function to balance the wide gap between
big and  small  enterprises in  the national  economic  structure.  The
economic  policy,  particularly  SME  development  policy,  should
clearly recognize the twin objectives of growth and export orientation
on the one level, and poverty reduction on the other hand which also
required   appropriate   policy   instrument   and   implementations.
Therefore, they have an important role in strengthening the national
economy, while at the same time address social concerns.

D.     Globalization : Challenges And Opportunities
As one of the WTO members, a lot of efforts, policies and programs  have  been  enacted  in  line  with  the  WTO  agreements. Recognizing the position of Indonesia as a developing country, we feel still a lot of things to do in order to cope with and adjust with the era of globalization. The worldwide trend of globalization and trade liberalization which is characterized by strong competition has created many challenges and opportunities to firms in general.
In today’s environment, there is increasing pressure for firms to operate trans-nationally. The simultaneous liberalization programs of different countries have opened up their domestic markets enabling foreign products to compete against local ones. Firms must now strive to  be  competitive  and  cannot  depend  on  sheltering  barriers  of protection.  But just as  firms  might now be threatened by foreign competition, they now have the opportunities to compete in foreign markets. They can now hope to penetrate export markets on the merit and strength of their companies and products without being frustrated by structural preferences for local firms.
The globalization trend does not just apply to the opening of markets  and  the  consequent  broadening  of  potential  sales.  The globalization trend is also apparent in the production and operations aspects of economy.
Many  of  our  consumer  products  are  in  integration  of
components manufactured in production facilities spread throughout
several nations. This is especially apparent in the automotive and
electronics  industries.  And  recently  it  is  also  applicable  to  the
furniture  industry,  where  auxiliary  system  are  there  while  SMEs
remain the main player. This is also evident in some service industries
where facilities for programming, claims processing, encoding, and
technical  support  are  located  in  countries  other  than  where  the
consumers  or  users  are.  The  globalization  of  production  and
operations  has  enabled  many  firms  to  exploit  the  competitive
advantages and resources uniquely present in different countries.
The impact of globalization and trade liberalization on SMEs in
Indonesia is complicated the government policy in response to the
economic crisis. Due to the crisis Indonesia has liberalized certain
sector or commodities faster than the schedule of commitment under
WTO Indonesia has set a schedule of implementation that care enough
to the stages of changes. However, the new policy package under IMF
agreement through several     letters of intent has brought faster track
that suffering a certain sector such as agriculture those used to be
under close protection and involve massive players. Other SME that
dependent from lower cost of import which able to offset the effect
the fall in rupiah value. The problem of Indonesia is more on the
adjustment process, rather than the threat of the trade liberalization,
since indicated by the degree of openness of the economy as by total
trade already high, that is approximately 55% of GDP.

E.    SMEs Development Strategy
In  order  to  strengthen  the  role  of  SMEs  in  export  and  in
economic development in general, the government has tried to focus
the  issue  of  SMEs  development  on  three  main  aspects  namely:
promotion  conducive  business  environment,  financial,  and  non-
financial supports including industrial linkages aspects. On conducive
business environment, the government tries to develop level playing
field for all businesses to compete in the market place. On this aspect,
some laws and other regulations may need to be revised or developed.
In addition, the government is also trying to simplify procedure and
mechanism for business licensing through one stop services. Recently
harmonization of local regulation to meet the national object we are
also increasing important.
On financial aspect, SMEs need to be given wider opportunities
to access to sources of credits, particularly banking institutions. For
this  purpose,  not only  regulations  and  credit  schemes  need  to  be
developed, but also improve the capability of SMEs utilizing banking
credit. Since most of SMEs are lacking in collateral, which is very
important for banking institutions as one of the criteria of customer
selections,  therefore  it  needs  to  have  so-called  credit  guarantee
institutions to back-up the necessary credit risk.   In addition, since of
those  total  SEs, 97.6  per  cent  are  micro  enterprises  and  very
impossible to access into banking credit, therefore the existence of
microfinance institutions, both banking and non banking institutions
are  also  very  important  to  be  promoted.  Being  largest  Moslem
population  country  Indonesia  has  put  serious  concern  on  the
promotion of   Shariah banking both at national and local level. It is
also extended with existence of Shariah non bank financial institution
such as cooperatives and BMT or house of wealth and thrift.
In  order  to  support  the  development  of  the  economy,  the
government has adopted a policy on continuation of handling carry
over financial support credit program, that is for agricultural sector
coordinated by Bank Rakyat Indonesia (BRI), property sector under
Bank BTN and other credits for cooperatives and SMEs under PT.
Permodalan Nasional Madani. This interim tasks is aimed at providing
smooth process into new banking format particularly, law on central
bank. Hence up to a present time this system still in operation, but
government do not put any additional fund to the program.
At present intensive coordination between Central Bank and the
Government  to utilize the banking business plan to support SME
promotion are oriented toward expansion of employment. It is also
oriented  to  promote  the  poverty  alleviation  program  through
productive activities. This program will be financed through micro
financial institution. The government provide extensive program for
capacity building of the poor. The amount of total credit for SME and
micro  credit  for 2002,  is  estimated 27,641  billion  rupiah.  This
program is expected to spur the recovery of the economy and speed up the reduction of the poor. Harmonization of credit type and institution in accordance with the target group car be seen in table 2. All of the program are implemented in accordance with the existing banking regulation and not evolve any government subsidy.
Lastly, on non-financial including industrial linkages aspect,
there are some issues needs to be addressed, such as: (a) strengthening
of coordination among SME promotion policies, (b) strengthening of
administrative  capacity  of  local  government, (c)  strengthening  of
monitoring  and  assessment  of  SME  promotion  measures,     (d)
implementation  of  comprehensive  policies  for  the  promotion  of
supporting industry,  (e) creating dynamic clusters for strengthening
international competitiveness, and (f) measures for export promotion.
For  the  development  of  international  competitiveness,  the
promotion of dynamic SMEs clusters, starting in  2001, have been
adopted. In 2001 around 213 clusters and this year (2002) will be
extended  to     332  another  clusters.  Since  the  existence  of  SMEs
business cluster, both manufacturing industry and non manufacturing
industry, still at early stage it is important to recognize the stage of cluster  from  being  survival,  mature  and  advance.  The  approach, modalities of support and instruments will be made in accordance to the principle of market driven with the aim of developing strong integrated cluster.
In  order  to  develop  these  clusters,  support  for  business development   services   has   been   introduced   as   non   financial component.  The  objective  providing  non-financial  support  among others are to give assistance of businesses consultancy, information, advocacy, and other developing network for SME development in the clusters. In addition, to support the SME’s finance, the government also  launched  initial  matching  fund  through  saving  and  loan cooperatives under the supervision of commercial bank. Integrated support to SME in the cluster will serve as stimulus for dynamising SMEs in the respective areas.

F.    Agenda For Future Actions
Despite the intensive competition in the political sphere due to
the democratization process, some economic indicators reveal that
economic  recovery  in  sight.  Indonesia  has  much  potential  for
economic recovery. However, we must not be overly optimistic that
the  turn  around  will  continue  without  considerable  further  policy
reform. Large risks and potential fluctuations in economic conditions
still lie ahead.
The most urgent priority is to sustain the recent trend towards
macro economic stabilization. It should be achieved in the short term,
by  continuing  the  current  approach  of  flexible  exchange  rates,
targeting of base money and maintaining a budget stimulus. Such an
approach is needed in the next few years to offset the collapse in
private demand and to protect vulnerable groups through social safety
net needs to be ensured through well-designed and targeted programs.
These require clear priorities of the target groups to minimize the
budgetary burden. Other components include: placing sunset clauses
on subsidies of special treatment, avoiding the entrapments of populist
policies,  and  prioritizing  needs  for  government  support  for  bank
restructuring.  However  efficient  micro  enterprising  and  SME  in
general  must  be  continued  under  the  objective  national  economic
policy.
Government   spending   should   remain   subject   to   fiscal discipline, mindful of the possible inflationary effects that would, in turn, affect the monetary targets. Some revenue may be raised from the disposal of some state-owned enterprises, but significant budget deficits  will  still  be  unavoidable  in  the  next  few  years.  Non inflationary  financing  of these  deficits  will be possible only  with substantial external support.
Beyond stabilization there are two priorities to restore growth.
The first priority is the issue of restructuring of banking and the
corporate  sector.  It  is  clear  that  public  funds  will  be  needed  to
restructure the banking sector. The most urgent need is to recapitalize
the viable banks so that normal banking activities can be resumed as
soon  as  possible.  As  stated  above,  9  banks  were  recapitalized  in
March 1999. Other issues related to growth and development would
be addressed in an open and transparent manner, taking into accounts
the principles of justice and fair distribution.   These include dealing
with the troubled banks, non performing loans, and asset management
of owners of the banks and debt to pay back to the government.
The second priority is to accelerate export growth. The sharp
devaluation of the Rupiah has led to a substantial improvement in
Indonesia’s competitiveness, in spite of the limited export response.
More needs to be done to remove administrative constraints and to
supply adequate working capital for potential exporters. I believe that
production  and  export  costs  can  be  reduced  by  further  trade
liberalization. An acceleration of trade liberalization by Indonesia,
therefore, should be equally responded by its trading partners. In this
context, renewed protectionism measures in various forms such as
anti-dumping measures, safeguards and subsidies should be avoided.
Economic growth must also lead to grater equity. To achieve
this objective, measures that are, economically sound and politically
acceptable  should  be  ensured.  While  direct  subsidies  targeted  to
eradicate poverty are important part of the policy response to the crisis, the strengthening of market mechanisms is critical element in the promotion of equity specific initiatives should include:
•  maintaining and improving communications and transport linked •  dismantling monopolies
•  reducing administrative constraints to internal  trade
•  reducing  high  transaction  costs  facing  small  and  medium-size
    enterprises (SMEs)
In current era of political openness it is important that measures which are supposedly designed to promote equity are not political favors to selected groups.  Otherwise, these can ruin  economic  stability  and jeopardize incentives and growth, and thus, increase the poverty level and inequality.
Many more issues will also arise in the next few years. One
challenge  is  to  maintain  the  momentum  in  augmenting  social
overhead capital. In addition, substantial investment is required in
human resources to improve the institutional capacity of agencies
entrusted  with  the  implementation  and  monitoring  of  policies  for
recovery and reform. In this regard, the most critical need is to ensure
that Bank Indonesia and other relevant agencies are able to safeguard
the soundness of restructured financial sector in the future.
We believe that the empowering the grass root economy, it is crucial to give the opportunity for SMEs to have improved access and maintain  legal  requirements  of  productive  asset.  The  ownership concept and productive asset management are in line with the concept to ownership limitation defined on business competition law, focusing on structural regulation, behavior limitation and performance towards monopoly. These concepts are also in line with privatization of Stateowned Company (BUMN), to avoid economic centralization and to give wider participation to private sectors including employee though employee ownership program (ESOP).
Even though cooperative’s and SMEs partially have succeed in
showing  successful  achievements,  but  weakness  in  one  part
challenges  and  in  another part  are  still  found.  Main  weakness  of
cooperative is poor relation between members and its cooperatives
and  low  educational  attainment  while  at  the  some  time  to  many
cooperative engage in multi purpose societies lock of focus and found
difficulty in the maintenance of its principle is business. Facing the
third  millennium  period,  which  is  characterized  by  globalization process, there will be a trend of making interaction process among economic practices become transparent. There is nothing to be hidden but  a  bit  part  of  anything  due  to  have  not  been  communicated properly.  The  era  is  free  trade,  demanding  capability  of  selfadaptation  of  every  economic  practice,  with  no  exception  to cooperative’s and SMEs.
It  needs  to  have  by  various  cooperative’s  and  SMEs
development policies which are more straightforward and oriented to
micro and local productive resources utilization in line with effective
effort strategy description. One of development focuses which can be
carried out is the improvement in quality of cooperative’s human
resources in managing cooperatives in order to utilize external factors.
Cooperative should be viewed as a suitable mechanisms in organizing
the  economy  of  micro  undertaking  with  special  focus  on  micro
financing.
The  most  critical  factor  hinder  the  SME  development  is
productivity improvement. To address this problem systematic effort
such as clustering strategy and technology support will be crucially
important. In this regard concentration on viable SMEs will help to
identify  competitive  SMEs  as  the  pilar  for  the  economy.  While
serving  the  need  for  poverty  reduction  micro  finance  program
combined with community development will ensure self sustaining
program for poverty alleviation in a productive manner.
G.    Concluding Remark
The existence of SME in Indonesia, these include SMI, services
agricultural  sector  and  micro  enterprises,  poses  a  very  strategic
position in employment and value added formation as well as their
role in safe guarding the economy during the crises. However strong
competitive  SMEs,  particularly  export  oriented  upper  small  and
medium  enterprises  are  deemed  important.  Effective  clustering
combined with harmonized micro financial and banking development
will  meet  the  objective  of  growth,  competitiveness  and  poverty
reduction.


REFERENCE :


1.    Alfonso, Oscar M ; Briging the Gap : Philipine SMEs & Globalization, Philipine,

2001.

2.    Arifin Bustanul and HS. Dillon  ; Asian Agriculture Facing The  21st Century,

ASEA, 2000.

3.    Gaiha. R  ; Design of Poverty Alleviation Strategy in Rural Areas, Food and

Agriculture  Organization, Rome, 1993
4.     Kantor Menteri Negara  Koperasi dan usaha  Kecil  dan  Menengah  ;  Direktori
    Usaha Kecil Menengah dan Koperasi di Indonesia, Jakarta, Indonesia, 2001
5. MOUSSIS, Nicholas ; Handbook of European Union, EDIT-EUR. 1994
6. MOUSSIS, Nicholas ; Access to European Union, EDIT-EUR. 1995
7. Mubyarto ; Prospek Otonomi Daerah dan Perekonomian Indonesia Pasca Krisis
    Ekonomi (Prospect  of  District  Autonomy  and  Indonesian  Economy,  Past
    Economic Crisis), BPFE, Yogyakarta, Indonesia, 2001
8.     Soetrisno,  Noer     ;  Menjadikan  Usaha  Kecil  sebagai  Motor  Pertumbuhan

(Promoting Small Enterprise for Motor Growth), Mimeo, Jakarta, April 2002.
9.     __________________;   Lembaga   Keuangan   Mikro,   Energi   Pemberdayaan
    Ekonomi Rakyat (Micro Financial Institution, Energy for Empowering of Grass
    Root’s Economy), Mimeo, Jakarta, December 2001.
10. Tambunan Tulus Dr  ; Kinerja Ekspor Manufaktur Indonesia,  (Performance of
    Indonesia’s  Manufacturing  Export),  Kompartemen  Industri  Logam  Dasar  &
    Mesin dan LP3E, Kadin Indonesia (Chamber of Commerce), Jakarta, 2001.

FOOD SECURITY IN INDONESIA SHORT RUN AND THE LONG RUN ISSUES

Introduction

1.     During  the  past  three  decades,  Indonesia  made  remarkable
progress  in  improving  food  security.    Increasing  food  production
during the first three five years development plan of 1969-1984 was
dominated by the effort of achieving self-sufficiency of rice.    The
successful   achievement  of  rice  self-sufficiency  in 1984   has
improved the status of food availability.   The domination of rice in
agricultural  development  was  quite  understood,  since  rice  was
contributed  about  18%  to  Indonesia's  GDP  in  1968  and  shared
more than 30% of consumer budget in urban area. Rice became a
dominant factor to the formation of inflation and placed the prime
attention in the maintenance of economic stability.   Rice was also
poses a strategic role in employment generation for the rural sector.

2.     Until 1996 food policy followed by the Indonesian Government was
oriented  toward  improving  the  nutritional  status  of  population
through  increasing  the  availability  of  food  items.     Increasing
domestic  production  has  been  the  main  instrument  for  the
maintenance  of  sufficient  food  availability,  while  import  was
considered as complementary sources.   Although the share of rice
in the consumer expenditure sharply declines, but rice still dominant
in the carbohydrate's source of the people's diet.   Up to now self-
sufficiency   of   rice   remains   a   national   goal   for   agriculture
development aimed at maintaining food security.

3.    The  development  of  food  supply in  aggregate  terms  indicates  a
progressive achievement, where the energy availability has exceed
3200   kilo   calorie/person/day,   and   this   is   considerably   high
compared  with  other  developing  nation.     However  the  high availability  of  energy does  not  followed  by the  composition  food items in accordance with balance diet principle.   On the other hand the   impressive   aggregate   availability does   not   reflect   the achievement of food security at the household level.

4.     In     1996  Indonesia  for  the  first  time  promulgated  the  food  law
number 7/1996 on food related mater.   The law basically outlined
the basic regulation on food safety and food security issues.   The
formal definition of food security that been adopted by Indonesia is
the  condition  that  food  should  be  sufficient  for  all  household  as
indicated  by  availability  of  food  supply  sufficiently  in  terms  of
quantity  and  quality,  that  food  is  safe,  equitably  available  and
affordable.   The food law no. 7/1996 is enacted since November 4,
1996 prior to the holding of the World Food Summit in Rome.   This
food law has provides the legal basis for food security regulation in the future.

5.     The year of  1997 recorded as the worst food crisis in history of
Indonesia's economic development in the post independence.   The
first half of the year 1997 still dominated by optimism on the stability
of food production as experienced in the previous year of  1996.
That  achievement  resulted  the  amounting  domestic  rice  surplus
available in domestic market where the domestic purchase of rice
by  government  exceeded  2  million  tons.    However  entering  the
second  half  of  the  year  Indonesia  faced  double  disasters.    The
disasters  to  the  Indonesian  economy  are  the  prolonged  drought
which  has  serious  effect  on  food  production,  and  the  monetary
crisis started since the end of July 1997.   The long drought persist
until early  1998 which caused delay of rice planting for the main
crop season and harvesting in the consecutive year.   Therefore rice
production has below the target for two consecutive years of 1997
and 1998.

6.    The  double  disaster  has  worsened  the  food  security situation in
these  two  consecutive  recent  years.    The  insecurity  of  food  in
Indonesia exists in terms of aggregate supply as well as the ability
of the community to access the limited supply of food.   Recent food insecurity
situation in Indonesia has produced an important lesson,
because  it's  also  produced  creative  thought  on  food  security
solution,  where  in  the  past  solely  depend  on  market  oriented
subsidy  and  government's  intervention  mechanism.    This  paper
trying to review the achievement in food security development and
outlines  the  possible  approaches  for  food  security  development
under the free trade regime when the cloud of exchange rate crisis
is over.

Food Security Status: Policy and Progress

7.     Food and nutrition development in the six five year development
plan     (1994/95-1998/99)  have  been  oriented  toward  achieving
certain goals as follows:a. improvement of food security status; b.
Improvement in the Balance Diet of the population as indicated by
the improvement Balance Diet Index  (known as score of PPH  =
Pola  Pangan  Harapan  or  desirable  dietary  pattern)  at  direct
household   consumption   and   aggregate   availability   levels;   c.
achievement of average direct energy consumption by household at
minimum   of 2150   kilo   calorie/person/day   and   the   protein
consumption  of  46.2  grams/person/day,  while  at  the  availability
level are 2500 kilo calorie and protein of 55 grams (40 grams from
plan source and  15 gram from animal source); d. free from food
items  that  dangerous  to  human  health;  e.  better  institutional
supports;  f.  increased  people  awareness  and  understanding  on
nutrition; and g. reduced for basic nutrition prevalence.

8.     To achieve the above-mentioned goals the government adopt five
basic   policy   namely:   a.   improving   food   security   status;   b
Diversification  of  food  consumption;  c.  improving  food  safety
condition;  d.  institutional  development;  and  e.  improvement  of
nutritional status.   Based on this policy three basic programs have
been  adopted  namely:  maintenance  of  food  sufficiency,  food
diversification, and improvement of nutritional status and supported
with several programs related to education, training, extension and research and development.   During this five year development plan, especially up to the year of 1997 has been implemented following the set guidelines.

9.     As   reported   earlier   that   in   aggregate   term   Indonesia   has
accomplished her task to meet the need of the basic food for the
population.   One of the achievement is the improvement in average
energy  availability  has  exceed 3,000  calorie/person/day.     The
energy availability has increased from  2,899 calorie in the end of 1993 into 3,208 in 1996.   In addition the availability of protein has improved  as  well.    Provision  of  sufficient  food  supply  has  been made possible because of increased domestic production couple with  increasing  import  of  all  food  items.    This  effort  has  made possible  for  Indonesia  to  acquire  impressive  improvement  in aggregate food supply.

10.     Judging from supply side, the effort of maintaining absolute food
self-sufficiency, particularly rice, Indonesia has fails to manage it as import  increases.     There  diverge  arguments  on  the  failure  to maintain absolute self sufficiency in rice, ranging from declining rice field, macro policy bias that causes disincentive to rice farming, and the  growing  competition  in  land  utilization  within  the  agricultural uses  themselves.    On  the  other  hand  the  record  on  food  trade balance appears with different story, where Indonesia has enjoyed continues surplus trade balance for food since 1983 and still gains favourable aggregate surpluses even this day.

11.     During the period of  1990-1998 rice import is increasing and the
average quantity of import is 794,408 matrix ton.   Other basic food
items  have  also  increased  with  the  same  trend.    The  average
annual imports for other food commodities are: corn  470,000 mt,
soybean  607,000 mt, wheat  2,883,000 mt and sugar  553,000 mt.
On the other hand the food trade balance during  1990-1997 has
increased with the amount annual average surplus of trade balance
for all food items amounted to more than 1,775.5 million US $. This
contradiction  indicates  that  food  sector  has  increasingly  poses
competitive strength, however cereal production is not necessarily to be forced into absolute sufficiency.

12.     This  split  trend  between  absolute  sufficiency and  monetary food
trade balance has invites a big debate in formulating food security
policy  for  the future, whether  Indonesia should fight for  rice self
sufficiency or neglect it.   The sixth National Workshop on Food and
Nutrition held in  1998 has recommended the new approach that
food security is the prime objective and self reliance is the way to
achieve  it.    Self  reliance  has  allow  some  flexibility  in  managing
domestic  production  and  the  maintenance  of  sufficiency  in  food
supply and provided with row for healthy competition in resource
utilization as well as the achievement of food diversification.

13.     The number of people experiencing the undernourished status also
declined significantly in terms of proportion to the total population
and in absolute number.   The most promising feature is the result
that distribution of food consumption is more even as compared to
the income distribution, hence income inequality do not appear as
the  barrier  to  the  improvement  of  nutritional  status  (Jatileksono,
1997).    This  study  also  reported  the  progress  of  food  security
development as evaluated from the perspective of the risk of being
fall  into  food  insecurity  situation  using  the  aggregate  household
food security index introduced by FAO.    In fact the progress on
nutritional  status  has  placed  Indonesia  into  the  group  of  highly
secure  country  in  terms  of  aggregate  food  security  index  as
reported by FAO (1996).   The improvement of the nutritional status
of the population has been the direct impact of poverty reduction
from 70 million people in 1970 into 27.2 million in 1990.   The farther
reduction of poverty incidence has gone down as far as 22.5 million
in 1996  or  11% of the population before worsened back due to
recent economic crisis.   The lessons from Indonesia's development
also support the argument that poverty is the prime caused of food
insecurity.

The number of urban household experiencing undernourished has
declined from 44 % in 1984 into 20.40 in 1996.   On the other hand
seems   to   have   a   slower   progress   in   the   reduction   of
undernourished   people,   where   during   the   same   period   the
percentage  of  undernourished  household  declined  from  37  % to
23.2    %.  This  calculation  has  include  the  estimate  of  food
consumption  outside  the  house    (Jatileksono,    1997).    Nutrition
experts usually only considered the real observable consumption in the household for accuracy purposes.

15.     Surprisingly  up  to     1996  the  evidence  of  energy  inadequacy  or
energy deficiency is dominant in Java that has well known as the food surplus's regions.   Being the food producing regions East and Central  Java  have  dominated  the  feature  of  energy  deficiency similar  to  what  happening  in  Nusa  Tenggara's  provinces.    The explanatory factor to the heavy incidence of undernourished in the situation of plenty supply is the poverty incidence.   This argument is confirmed by the evidence of vocational distribution of poor family within the region, where the locations with poor resources are suffer more than the other part.

16.     The progress on improving food security during the last decade is
actually contributed by two important factors, firstly increased food
availability resulted from increased domestic production and import
of  wide  range  of  food  items,  and  secondly increased per  capita
income coupled with speed poverty reduction.   However in macro
terms  the  burden  of  the  country  on  maintaining  food  availability
remain  unease,  since  population  growth  remains  positive  and
caused continues growth in food demand.   Rice as the main staple
food economically has become less important to macro economic
consideration as per capita consumption started to decline and its
share  the  consumer  expenditures  become  smaller  made  it  less
sensitive  to  inflation  formation.    The  Central  Bureau  of  Statistic
(CBS) has reported that direct household consumption for rice has
consistently  decline  over  the  three  periods  of  national  socio
economic survey in 1990 (118.14kg/cap), 1993 (116.38kg/cap) and 1996 (111.49kg/cap).

17.     The concept of food security adopted in the food law no 7/1996 is
basically consistent with the principle of self reliant adopted in the
Rome  Declaration  of  the  1996  World  Food  Summit.    The  law
basically  considers  that  food  is  fundamental  human  right  having
strategic position in human resource development, that it should be
safe, better quality, sufficient in quantity and variety oriented for the
welfare of the community, and food should be viewed as traded
commodity.    On the food security matter the law also provide a
basis  for  national  food  reserve  that  are  consists  of  government
reserve and community reserve.    The government is obligated to
promote  community  base  food  reserve.     Over  the  last  three
decades of food price stabilization policy the orientation only limited
to stabilizing market prices and do not involve directly in addressing
food  insecure  group.     The  enactment  of  this  food  law  is  an
important  step  in  the  development  of  institutional  support  to  the
food system.

18.     Before   embarking into other section the high light of the status of
food security development up to the period of the economic crisis
come can be summarize as although there are significant increased
in  food  availability  and  improved  the  aggregate  household  food
security  status,  the  number  of  undernourished  people  are  still
relatively high.   Rice self sufficiency facing a severe challenges to
maintain it, but economically Indonesia shows stronger in managing
food trade balance surpluses.   This suggest that sufficiency is no
longer the sole determinant for food security improvement.   Rising
income and more opening up economy will suggest greater variety
of people diet.

The Impact of Double Disasters

The rice production has enjoyed a high growth in the year of 1995
and    1996  when  recorded  increase  of    6.65    %  and  2.76  %
consecutively.   This impressive brought rice production exceed the
trend required to maintain on trend self-sufficiency.   However due to
heavy drought in the second half of  1997 rice production felt by
3.64% and the impact was even longer until the early quarter of
1998 which caused 2-3 months delay in planting of the main crop
season  of  1997/98.    It  caused  the  forecast  for  1998  production
down  below  the  1997  level,  earlier  forecast  indicated  that  1998
production only slightly lowering down by 2.45%. But as the second
harvest was not quite successful the second forecast is even worst
indicated that the production is expected to decline further by 6.4%.

20.     The rice situation in 1997 was considerably abnormal, since the first
half of the year the optimistic feature there.   This was indicated by
the  performance  domestic  procurement  by  BULOG  exceeded  2
million ton, but during October-December rice price increased about
10-15% in a very short period and another increase experience in
the  next  first  quarter  of 1998. Using  the  production-supply-
consumption-stock movement reported by CBS (1998) indicate that
the carry over stock in the community by the end of December 1997
was only 1. 19 million ton or two weeks consumption.   In the normal
year the average stock during the off-harvest season about  1.5 x
monthly  consumption,  hence  the  government  market  injection
needed to stabilize market price only about  10-15  % of monthly
consumption.

21.     The situation in the first half of 1998 is worst as the forecast of rice
production  seriously  decrease  due  to  late  planting  and  lower productivity.   The situation may be the worst during the post 1984, where net production-consumption balance is deficit.   Over many years  there  are  a  margin  to  cover  stock  replenishment  and additional  demand  for  new  households  and  expansion  of  rice trading activity

The  total  rice  supply  through  out  the  year  of     1998  seems
considerably sufficient, although December-January will be many
big event related to Christmas and New Year, Idul Fitri and Chinese
new year.   This optimism is based on the forecast for ending stock
of  more  than 6  million  tons  will  be  sufficient  for  two  month
consumption before the fresh rice from main crop harvest enter into
the  market  in  late  February 1999.    The  weather  forecast  also
indicated the rainfall will above the normal days, hence people are asked to prepare for the possible damage cause by the existence of LA  NINA  this  year.     Therefore  the  macro  rice  situation  is considerably will be no much problem, but micro level there are still many obstacles to be confronted by the government if household food security is the prime concern.

23.    In the short run there are three principal food security challenge
faces by Indonesia, these are:
to ensure that adequate supplies of food are available, through domestic production and trade, to meet the national needs;
to protect the food consumption of the poor  (food affordability challenge); and
to  reduce  the  volatility  of  availability  at  the  household  and national level.
The  three  objectives  are  inter  related  and  required two pronged strategy at macro and micro level to give the instrumental inputs to the maintenance of peaceful situation at the grassroots level.

24.     Looking from different angle, more specifically from accessibility of
the people there are some factors constraining them to access the available food supplies.   Negative economic growth during this year coupled with the collapse of the private banking sector has brought significant  effect  on  unemployment  in  urban  areas.    At  present many reports are estimating that the number of unemployment has reached nearly 17 million.   The urban poor and poor family in Java is suffering more than those are in outside Java.   This partly due to the nature of the economic activity, those who involve in the export oriented  agribusiness  are  gaining  from  the  rupiah  crisis.     The increasing number of unemployed worker has significant effect on jobs availability in the urban sector.

25.     The  data  on  the  household  condition  organized  by  the  National
Family Planing Board also indicated that the number of the poorest
family (Pra Sejahtera) has increased due to recent economic crisis.
The total number of household falls into category of poorest (KPS)
are 7.998 million households and the poor (Sejahtera 1) are 9.478
million  households,  make  in  total  of 17.476  million  households
(BKKBN,  August-Sept  Report).     The  CBS  estimate  on  poor population at present is nearly  80 million people.    Both data are match each other and complementary in identifying the poor.   The BKKBN  data  provide  individual  household  list  on  the  status  of household, although there are different approach in identifying the poor.     However  it's  still  lack  of  capability  in  identifying  urban citizenshipless that are not in the list of poor family.

26.     In   approaching   the   food   insecurity   situation   Indonesia   has
developed a Food and Nutrition Surveillance System (FNSS) which
was  originally  implemented  in  the  areas  facing  hunger  and
malnutrition.   Since 1994 the system has been adopted as a part of
improving the effectiveness of food insecurity monitoring system.
This system is basically consists of three sub-system namely  (i).
production  and  availability  surveillance  sub-system    (MOA);    (ii).
distribution surveillance subsystem (BULOG); and (iii). consumption
and nutrition sub-system (MOH).   This team coordinated by Ministry
of Food and Horticulture (MOFH).   The system has able to identify
the food insecure areas base on three basic category of the record
in production failure, existence of food shortage and the evidence of
undernourished.    However  this  approach  does  not  provide  any
information  concerning  the  list  of  household  facing  the  famine
threat.   For the purpose of improving the effectiveness in targeting
the  on  household  has  adopted  in  monitoring  the  food  security
situation.


Policy for Confronting Food Crisis

27.     The economic crisis has brought Indonesian sign a moratorium as
economic  policy  reform  package  with  the  International  Monetary
Fund for securing foreign loan and assistance.    One importance
aspect  under  the  moratorium  is  the  liberalization  of  several
marketing board for food commodities and schedule for reduction of
subsidy.     Starting  from  November 1, 1997  schedule  for  trade
liberalization has been made among others are:
(i).     Dismantling monopoly of food importation for sugar, wheat
grain,  corn,  feeds  and  soybean.     The  govermnent  has
consistently implementing this program and to some extend
has been done faster than it's schedule.   The completion of
full trade liberalization was done on September 1, 1998.
(ii).     BULOG still responsible for importing rice and distribution to
the market, however some new arrangement has been made
by   the   Reform's   Government   in   performing   better
transparency on rice importation.   At present importation of
rice  by  the  private  sector  is  allowed  for 6  months  period
starting September 1998.
(iii).    Ban  on  export  of  subsidized  food  items  to  avoid  supply
shortage  in  domestic  market.    This  policy  considered
important during the situation where sharp price differential between  domestic  and  neighbouring  country  exists.    This policy  will  automatically  relaxed  when  exchange  rate  of rupiah has come to its parity value.
(iv).    In  view  of  securing  the  second  rice  crops  of     1998  and
1998/99  main  crop  the  government  has  right  off  the
outstanding loan of farm credit, keeping fertilizer subsidy and
expanding  the  absorption  of  farm  credit. In  addition
government through MOH has organized an accompanying
program  for  increasing  food  production.      About 5,000
students  and  university  graduates  has  been  recruited  and currently living in the field with the farmer.
28.     In   coping   with   shortage   and   food   insecurity   problem   the
Government of Indonesia has introduced new distribution package
of rice for the poor households.   Starting on July 1,  1998 at pilot
scale  the  special  rice  sale  to  the  poor  household  has  been
implemented in Jakarta Metropolitan Province and the Suburb of
Bogor, Tangerang and Bekasi.    Starting August  1, this year  the
operation  has  been  expanded  into  53  districts  scattered  in 15
provinces those are facing potential food insecurity.   And starting October this year the operation is expected to cover all the poorest household all over Indonesia.    The province of East and Central Java who have the highest rank in the number of poor household has  started  to  do  the  special  sales  operation  and  reported  very successful compared to other region.

29.     The  special  rice  sale  serve  as  the  base  for  addressing  the
potentially food insecure group, where each family only eligible to buy 10  kilograms  of  medium  quality  of  rice  every  month  at subsidized price of Rp. 1,000.00. The rice is provided by BULOG down into the village area or distribution point that are agreeable by the parties concern.
The local government act as the leader in special rice sale, while
the family planing officers responsible for providing the list of the
household eligible for special rice sale.    The idea of the sale is
basically an embryo for developing such food stamp network.   This
new scheme has been considered as an instrument for targeting
the  subsidy.     One  important  feature  of  this  new  scheme  is