|Series||Development discussion paper -- no.196|
Rice is a politically strategic commodity in Indonesia. The government seeks to ensure that rice production meets the needs of domestic consumption and, accordingly, is interested in its performance as a matter of considerable policy by: Rice is a politically strategic commodity in Indonesia. The government seeks to ensure that rice production meets the needs of domestic consumption and, accordingly, is interested in its Author: Joko Mariyono. Downloadable! This paper presents an agriculture sector focused Computable General Equilibrium (AG-CGE) model for analyzing the economy-wide impacts of changes in technology, protection, and market structure on resource allocation, production, and trade in Indonesia. The paper incorporates a specification of the rice market and models the government price-support, stocking, and trade policies. Industrialisation was the Procrustean bed of all policy in that period, particularly from the early ‘80s. To promote industry, the government aimed to increase rice production while keeping prices low for consumers so they would not demand higher wages. To stimulate production, the government improved infrastructure, especially irrigation.
political dimension of the economy of rice industry in Indonesia could be seen from a very high attention of every level of society on the performance of rice production, price stability, and stock management. A common belief is that the import surge of rice in Indonesia is closely related with a significant decline in domestic price of non-husked. Starting in July, rice price is on the rise again until the end of the year. The pattern is caused by the harvest time of the rice 1. The Monthly Rice Price Development of Indonesia, Source: BPS, Fig. 1 shows that the national rice price tends to increase from year to year. Rice production in Indonesia has been found to be vulnerable of climate change and adaptation strategies on irrigation, biotechnology and selection of alternative crops are necessary (Naylor et al., ). Exclusively in Sidoarjo region (East Java NCR), an additional thread of expanding mud flow upon a failure of mining activity might affect. The results of the study we found that domestic rice production and the exchange rate have negative effect on domestic rice prices, in contrast the international rice price and the level of income.
The rice price policy can be split in several periods as the country’s context Implemented first for rice, the main staple crop in Indonesia, the field of action of BULOG was extended to other crops in the 80’s. highly growing rice production in a stabilized markets environment. III. Why have stable rice prices been so important in Indonesia? A. Rice in the domestic economy: Rice is the barometer of the economic situation in Indonesia according to Harian Kami () 1. Production (unstable due to weather/pests; but much more stable than world prices) 2. Marketing (90% private sector) 3. Consumption (goal is steady on. Central Java As The Hub of Sustainable Rice Production in Indonesia 05/03/ in News. Indonesia’s main rice producing island is Java. Located in the middle of Java surrounded by volcanic mountains and abundant water sources makes Central Java is fertile agriculture land and full of potentials to increase national rice supply. IRRI estimates that Indonesia will require 38% more rice in 25 years, which means that the present average rice yield of t/ha must increase to more than 6 t/ha to fill the gap. To avoid huge imports, most rice policies in Indonesia have been aimed at achieving rice self-sufficiency by increasing production.