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ndonesia will ask G20 member countries to push efforts in eliminating food price speculators and expects the forum to pool funds to increase food productivity amid soaring food prices in the world and at home, a top official says.

Ahead of the G20 finance ministers and central bank governors meeting in Paris on Friday and Saturday, Finance Minister Agus Martowardojo said on Wednesday that Indonesia would address the importance for the major economies to focus on food concerns, especially on prices and productivity, in an attempt to secure the people’s needs and, at the same time, tame inflation.

“We want the G20 forum to put pressure [on the markets] so there would be no speculators, or any financial or non-financial industries, who speculate on food commodities,” Agus told reporters at his office in Jakarta, hoping to calm growing food prices due to price speculation.

Financial and non-financial firms usually trade food futures, an activity that could create high demand and increase prices, he explained.

“G20, which affects the world’s economy, should tell global financial and non-financial industries not to speculate on food and commodities,” Agus said.

Indonesia’s food production, as well as other agricultural products, dropped significantly in 2010 due to extreme weather. Similar conditions also occurred in other major food producing countries, causing food prices to skyrocket.

The United Nation’s Food and Agriculture Organization (FAO) said global food prices hit their highest level in history last January, pushing up prices throughout the world, including Indonesia.

The country’s inflation reached a 21-month high of 7.02 percent in January mainly due to soaring rice, chili and other food prices.

“[The January figure] shows there should be extra efforts to maintain inflation. We’re keeping eyes on that,” Agus said, adding that, at least for the first quarter of this year, food stocks would be sufficient.

“But it doesn’t mean that in the third and second quarters food stocks would also be safe, because the extreme weather needs to be anticipated. We really need to control Indonesia’s food balance.”

To solve the stock issue, which is also happening elsewhere in the world, Agus expects the G20 economies to pool funds in an attempt to increase global food productivity.

“This idea came from Pak Boediono, the Vice President, because in the 1970s there were times when developing countries suffered food shortages. The world allocated funds for research on rice, which found rice seeds which were customized in Indonesia and have increased our food production,” he explained.

“We will also bring the [fund pooling] issue to the G20 forum.”

Agus highlighted the upward trend in food prices, so the issue “should be put forward” at the upcoming G20 forum. “If food prices soar, inflation would mount and the countries would suffer difficulties.”

“So at the G20 level, for the long-term, we want the countries to pool funds in one specific fund to increase food productivity, but for the short-term, we must deliver the message to financial and non-financial industries which speculate on food prices, as well as future trading industries, so they do not destabilize prices,” he added.