Preparing for El Niño: Policy Options
Scientists are forecasting that there may be a severe El Niño weather event lasting through mid-2016. For Indonesia, El Niño events are associated with prolonged drought, with adverse effects on food and cash crop production.
Drought-affected declines in agricultural production can contribute to higher inflation, increases in poverty, weak exports, and unless El Niño risks are appropriately mitigated, can have adverse effects on political stability. Agriculture no longer plays a major role in the Indonesian economy. Nonetheless, a prolonged El Niño event could weaken growth, adversely affect external balance and trigger higher price inflation
About ADB Papers on Indonesia
The ADB Papers on Indonesia are designed to provide information, analysis, and advice on issues of interest to Indonesia's development stakeholders. The series is produced by sector experts and maintained by the ADB Indonesia Resident Mission.