Preparing for El Niño: policy options

ADB Papers on Indonesia No. 01, August 2015:

This paper explains how drought-affected declines in agricultural production can contribute to higher inflation, increases in poverty, weak exports and adverse effects on political stability, unless El Niño risks are appropriately mitigated. Further, it proposes possible responses to reduce restrictions on food imports and to build stocks.

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.