Russia-Ukraine tensions likely to affect Indonesia’s wheat supply

Indonesia’s wheat supply may be impacted by the ongoing Russia-Ukraine conflict, as the nation heavily depends on wheat imports from Ukraine.

A wheat harvest in Salaran, Getasan, Semarang, Central Java on September 8, 2016. (Photo: Antara)

Jakarta (VNA) - Indonesia’s wheat supply may be impacted by theongoing Russia-Ukraine conflict, as the nation heavily depends on wheat importsfrom Ukraine.

According to the think tank Center for Strategic andInternational Studies (CSIS), the two countries might not be Indonesia’s majortrading partners for import or export. But the conflict will have an effect onIndonesia's food ingredient imports, particularly Ukrainian wheat.

Lestary J. Barany, a research assistant at the CSIS's economicsdepartment, said thatabout 75 percent of Indonesia's imports from Ukraine are cereals, includingwheat, followed by iron and steel 23 percent, and other commodities 2percent.

Ukraine is Indonesia’s top supplier of wheat - a keyingredient for noodle, flour and bread producers. But many of its wheatgranaries are in the eastern region, which is in close proximity to where theRussian troops have been deployed. So the threats on the supply side areincreasingly felt, Lestary added./.

VNA

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