The Covid-19 pandemic has shocked the demand and supply of food product leading to large price fluctuations in the market not only at the national level but also at the regional level. This paper examines the existence of structural break and the volatility of chicken meat prices in six main islands in Indonesia by using additive outlier and ARCH-GARCH models. During the Covid-19 outbreak in Indonesia, the structural break in the chicken meat prices occurred in the six islands. There were variations in terms of the timing of the structural break where Kalimantan and Java island experienced the fastest structural break. Further examinations showed that after the structural break time, the prices of chicken meat in Sumatera, Java, Sulawesi and Papua tended to increase. Meanwhile, the prices of chicken meat in Kalimantan and Bali-NT tended to decline after the break time. The Covid-19 pandemic had a significant impact on chicken meat prices in Java and Bali-NT. The results have important implications for local and central governments that are still under the Covid-19 crisis on how to attain price stabilisation of regional chicken meat prices during the Covid-19 pandemic.

The Government of Indonesia has been promoting the advancement of the biodiesel sector to fulfill its commitment to support clean energy, energy security, and rural development. This paper examines the economic impact of the biodiesel sector using a computable general equilibrium model. Besides analyzing the impacts on the national macroeconomic conditions, other sectors, and household incomes, our model has also included a regional block to capture the impact of the biodiesel mandate on regional growth. Two simulations were performed: (1) fulfillment of the 30% biodiesel blending target (B30 mandate), and (2) Simulation 1 combined with the European Union’s biodiesel trade ban resulting in an export reduction of 5.18%. The results show that the two simulations provide positive impacts on macroeconomic variables, including real gross domestic product and real wages. However, the B30 mandate and the combined effect of the EU trade ban still yield an inflationary effect in the short term. They also potentially reduce the production of several agricultural products—such as sugarcane, fruits, vegetables, and soybeans—leading to an increase in food prices. The policy implications highlight that the current B30 mandate and EU ban cannot automatically improve the fuel trade balance.