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Market-Approach-Based Policy to Achieve Rice Price Stability in Indonesia—Can It Be a Complement?
Food price volatility broadly impacts the country’s food security. Rice price stabilization in Indonesia is carried out by BULOG, the...
2022 | Topan Ruspayandi, Tajuddin Bantacut, Bustanul Arifin, and Idqan Fahmi
Food price volatility broadly impacts the country’s food security. Rice price stabilization in Indonesia is carried out by BULOG, the food state-owned enterprise (SOE) that the WTO has identified as Indonesia’s state trading enterprise (STE). This study was conducted to evaluate the price stabilization program in Indonesia by reviewing the efforts that have been made and analyzing the factors that influence the price of rice at the consumer level using Autoregressive Distributed Lag (ARDL) analysis. The analysis showed that BULOG’s market share affected consumer-level rice prices with a negative coefficient sign, which means that the larger BULOG’s market share, the lower the price of rice will be. Other variables that affect the price of rice at the consumer level are the price of rice itself at the previous time lag, the producer-level paddy price, rice production, rice consumption, and BULOG’s operational rice stock. On the basis of the results of these studies, to realize the stabilization of rice prices in Indonesia, the government can complement stock management through a public policy approach with market-approach-based policies by optimizing the role of Food SOEs as market players in the rice industry.
Economic Transformation of Pepper Farmer’s Households in Lampung Province
This study aims to analyze: (1) pepper farming income (2) income and economic transformation of pepper farmer’s households. This research...
2023 | Lidya Sari Mas Indah, Bustanul Arifin, Ambya, and Nurfath Bella Syahidah
This study aims to analyze: (1) pepper farming income (2) income and economic transformation of pepper farmer’s households. This research was conducted in 3 districts that were chosen purposively because these locations are the main black pepper producers in Lampung Province. There were 100 farmer respondents and were taken by simple random sampling method. Data collection was carried out from April to September 2020. The analytical method used was farming analysis and farmer household income. The results showed that pepper farming activities in Way Kanan, North Lampung, and East Lampung Regency were profitable to cultivate because the RC ratio was more than one, the economic income of farmer’s households came from on farm pepper, on farm non pepper, non-farm and off farm.
Covid-19 Pandemic, Regional Structural Break and The Volatility of Chicken Meat Prices in Indonesia
The Covid-19 pandemic has shocked the demand and supply of food product leading to large price fluctuations in the market...
2021 | Sahara
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.
Price Transmission on the Indonesian Beef Market
Beef has been seen as one of the strategic commodities in Indonesia. As the awareness of people to protein consumption...
2021 | Komalawati, Afrizal Malik, Ratih Kurnia Jatuningtyas, dan Munir Eti Wulanjari
Beef has been seen as one of the strategic commodities in Indonesia. As the awareness of people to protein consumption increasing, demand for beef and its prices are also rising. However, the rising consumer price of beef is not followed by the increasing price of beef at the producer level. Therefore, the objective of this study is to analyze the transmission of beef prices at the consumer and producer level. This study used secondary data from the Agency for Central Statistics of Indonesia. The data used were the consumer and producer prices of beef from 2008 to 2016. The data were analyzed using the Vector Error Correction Model (VECM). The results show that the prices of beef at the consumer and the producer level are asymmetric and have uni direct relationships. The consumer prices of beef influence the producer prices of beef and not vice versa. It is recommended for the Government to formulate policies that could facilitate transparent information for every actor along the beef market chain. In the long-run, the Government needs to increase the population of domestic cattle and give incentives to domestic cattle farmers with large business scales.
Modeling Price Volatility and Supply Response of Beef in Indonesia
Beef is one of the strategic livestock commodities in Indonesia. As demand increases, the price of beef increases and tends...
2019 | Komalawati, R.W. Asmarantaka, R. Nurmalina, & D.B. Hakim
Beef is one of the strategic livestock commodities in Indonesia. As demand increases, the price of beef increases and tends to be volatile. The increased volatility in beef prices could influence production decision and the supply of beef. This study aimed to investigate the price volatility and the impact of price volatility on the supply response of beef in Indonesia. This study used secondary data obtained from various related institutions. Volatility was estimated using the GARCH (p,q) model and the supply response model using OLS model. The empirical results indicated that among the estimated GARCH models, the GARCH (2,3) seemed to be particularly appropriate to describe the beef price supply response. Beef price volatility in Indonesia was found to be low and persistent in the long run. Price uncertainty appeared to have a substantial negative effect on Indonesian beef production. The slow adjustment of farmers to demand and supply shocks indicate the importance of import as a temporary policy to fulfill the demand of beef in the short and medium-run.
Indonesian Rice Farmers’ Perceptions of Different Sources of Information and Their Effect on Farmer Capability
The diverse sources of agricultural extension information do not guarantee increased farmers’ capabilities to adopt agricultural innovations. Consequently, efforts to...
2023 | Maesti Mardiharini, Erizal Jamal, Eni Siti Rohaeni, Chandra Indrawanto, Kurnia Suci Indraningsih, Endro Gunawan, Rizky Prayogo Ramadhan, Imam Mujahidin Fahmid, Ï Putu Wardana, Ening Ariningsih
The diverse sources of agricultural extension information do not guarantee increased farmers’ capabilities to adopt agricultural innovations. Consequently, efforts to accelerate the adoption of agricultural innovations should pay particular attention to farmers’ compatibility with different information sources. This study aims to analyze farmers’ perceptions of various information sources about rice commodity innovations and determine the information sources influencing farmers’ capabilities in adopting rice innovations. The study was conducted from June to December 2019 through a structured survey approach with 270 rice farmers in Subang, West Java and Boyolali, Central Java, Indonesia, by using structural equation model analysis. The results showed that rice farmers had positive perceptions of government, private, and self-subsistent extension. The capability level of rice farmers showed that all indicators were significantly different. Farmers could improve their capabilities and sustainability of rice farming by adopting agricultural innovations. Information from government and private extension providers had a positive effect on the capacity and capability of rice farmers. The role of self-subsistent extension was more of a facilitator and did not directly affect the capacity and capability of farmers. Participatory extension activities are recommended as a form of intervention that can improve rice farmers’ capacity and capability in terms of technology adoption processes. The extension activities should be provided as a series, rather than one-off events, so that farmer knowledge accumulates over time through a style and pace to match their skills and level of education.