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| Food Security: Impact of the Financial Crisis |
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The 1997 financial crisis also had a negative impact on food security in Indonesia. The decline in domestic crop
production required massive importing of food crops. However, the immense plunge of the rupiah radically reduced the
import capacity of the country. In addition, high unemployment cut the purchasing power of people. Even for those employed,
a decline in the real value of income further undermined the ability of people to pay for food.
The poor were affected most by the recent food crisis. According to the Food and Agriculture Organization (FAO),
many households in Indonesia have been forced to cut back to just two or even one meal per day, increasing the incidence of
malnutrition. In response to the deteriorating food situation, the FAO and the World Food Programme (WFP) began an emergency
food assistance operation from May 1998.
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