POLITICAL ECONOMIC ANALYSIS OF RICE SELF-SUFFICIENCY IN INDONESIA

Sri Nuryanti, Dedi Budiman Hakim, Hermanto Siregar, M. Husein Sawit

Abstract


Rice self-sufficiency is an important programme in Indonesia. The programme has four major targets, i.e. increasing production, stabilizing prices and reserve stocks, and minimizing import. For that purpose, the government gave a mandate to a parastatal, namely National Logistic Agency (Bulog) in implementing the rice policies. Some studies found that involvement of such a parastatal could lead to government failure in budget allocation. The study aimed to estimate social cost of rice self-sufficiency programme based on the implementation of rice instrument policies by Bulog. The study used the national annual data of 2002–2014 period. The method used was the political preference function model to estimate economic rent and dead-weight loss using rice price elasticity of demand and supply. The result showed that in terms of percentage of food security budget, the average of economic rent reached IDR 6.37 trillion per annum (18.54%), while the average of dead-weight loss amounted at IDR 0.90 trillion per annum (2.34%). It proved that rice self-sufficiency programme along with the involvement of Bulog was economically inefficient. The government should provide better agricultural infrastructure, review governmental procurement prices, and stop rice import policy to remedy market failure.


Keywords


budget; policy; rice; self-sufficiency

Full Text:

PDF

References


Anggoro, U.K. (2014) Jihad Kedaulatan Pangan dalam Bingkai Penciptaan Keunggulan Komparatif dan Keunggulan Kompetitif.In:

Agus,A. et al. (eds.) Jihad Menegakkan Kedaulatan Pangan Suara dari Bulaksumur. Yogyakarta, Gadjah Mada University Press.

Baharsjah, S., Kasryno, F. & Pasandaran, E. (2014) Reposisi politik pertanian meretas arah baru pembangunan pertanian. Jakarta, Yayasan Pertanian Mandiri.

Barker, R. & Hayami, F. (1976) Price support versus input subsidy for food Self-sufficiency in developing countries. American Journal of Agricultural Economics. [Online] 58 (4), 617–628. Available from: doi:https://doi.org/10.2307/1238804.

Barret, C.B. (1999) Microeconomics of the developmental paradox: On the political economy of food price policy. Agricultural Economics. [Online] 20 (2), 159–172. Available from: doi:https://doi.org/10.1016/S0169-5150(98)00085-1.

Bresnahan, T.F. (1982) The oligopoly solution concept is identified. Economics Letters. [Online] 10 (1–2), 87–92. Available from: doi:10.1016/0165-1765(82)90121-5.

Bullock, D.S. (1994) In search of rational government: What political preference function studies measure and assume. American Journal of Agricultural Economics. [Online] 76 (3), 347. Available from: doi:10.2307/1243648.

Hai, N.M. & Talbot, T. (2013) The political economy of food price policy : The case of rice prices in Vietnam. 1–19.

Hariyadi, S.S. & Yamin (2014) Kebijakan perberasan dan nasib petani kecil.In: Krisnamurthi,B. (ed.) Ekonomi perberasan indonesia. Bogor, Perhepi.

Houck, J.P. (1986) Elements of agricultural trade policies. New York, MacMillan Pub.Co.

Hutagaol, M. (2017) Dari ketergantungan pada beras menuju diversifikasi pangan: Menjadikan produksi pangan tidak lagi beban ekonomi, tapi modal pembangunan nasional. Orasi Ilmiah Guru Besar IPB pada tanggal 25 Februari 2017. Bogor, Institut Pertanian Bogor.

Johnson, R.W.M. (1995) Modelling government processes and policies in agriculture: A review. Review of Marketing and Agricultural Economics. 63 (3), Australian Agricultural and Resource Economics Society.

Jula, N.M. & Buneci, B. (2013) Critical loss of social welfare under monopoly. [Online] Available from: ftp://ftp.repec.org/opt/ReDIF/RePEc/eub/wpaper/eub-2013/2013-06.pdf.

Lau, J.L. (1982) Economics letters. Economics Letters. 10 (1–2) 93–99.

Makbul, Y., Pradono, Ratnaningtyas, S. & Dwiyantoro, P. (2015) The effect of market structure on the integration of rice prices with paddy prices and its impact on farmers family income in the Kroya district, indramayu regency, Indonesia. The Journal of Developing Areas. [Online] 49 (3) 217–228. Available from: doi:10.1353/jda.2015.0156.

Masters, W.A. & Garcia, A.F. (2009) Agricultural price distortion and stabilization. World Bank, Washington, DC.

Masyhuri & Novia, R.A. (2014) Marketable surplus beras.In: Krisnamurthi,B. (ed.) Ekonomi Perberasan Indonesia. Bogor, Perhepi.

McCulloch, N. & Timmer, P. C. (2008) Rice policy in Indonesia: A special issue. Bulletin of Indonesian Economic Studies. [Online] 44 (1), 33–44. Available from: doi:10.1080/00074910802001561.

Minten, B., Murshid, K.A.S. & Reardon, T. (2013) Food Quality Changes and Implications: Evidence from the Rice Value Chain of Bangladesh. World Development. [Online] 42 (1), 100–113. Available from: doi:10.1016/j.worlddev.2012.06.015.

Ortiz, J. (1999) The role of interest groups in agricultural policy design: Chile 1960-1988. Journal of International Development. [Online] 11 (2), 241–258. Available from: doi:10.1002/(SICI)1099-1328(199903/04)11:2<241::AID-JID569>3.0.CO;2-V.

Rashid, S., Cummings, R.J. & Gulati, A. (2007) Grain marketing parastatals in Asia: Results from six case studies. World Development. [Online] 35 (11), 1872–1888. Available from: doi:10.1016/J.WORLDDEV.2006.12.006.

Rausser, G.C. & Roland, G. (2009) Special interests versus the public interest in policy determination. [Online] Available from: http://www.worldbank.org/agdistortions.

Reddy & Amarender, A. (2015) Regional disparities in profitability of rice production: Where small farmers stand? Indian Journal of Agricultural Economics. 70 (3), 259-271

Steen, F. & Salvanes, K.G. (1999) Testing for market power using a dynamic oligopoly model. International Journal of Industrial Organization. 17 (2) 147–177.

Suryana, A., Mardianto, S. & Tim Pengkajian Kebijakan Perberasan Nasional (Indonesia) (2001) Bunga rampai ekonomi beras. Jakarta, Lembaga Penyelidikan Ekonomi dan Masyarakat, Fakultas Ekonomi, Universitas Indonesia (LPEM-UI) bekerjasama dengan Badan Bimas Ketahanan Pangan, Departemen Pertanian dan Badan Perencanaan Pembangunan Nasional (Bappenas).

Swinnen, J. & Zee, F.A. Van Der (1993) The political economy of agricultural policies: A survey. European Review of Agricultural Economics. [Online] 20 (3), 261–290. Available from: doi:10.1093/erae/20.3.261.

Timmer, P.C. (1986) Getting prices right – The scope and limits of agricultural price policy. Itacha, New York, Cornell University Press.

Timmer, P. C. (2004) Working paper number 48 November 2004 food security in Indonesia: Current challenges and the long-run outlook. [Online] Available from: https://www.cgdev.org/sites/default/files/2740_file_WP_48_Food_security_in_Indonesia.pdf.

Wambua, J., Rose, N., Maina, M., Ann, W. & Mumbi, N. (2005) A decade of parastatal waste : a study of the audited accounts of state corporations over the period from 1993 to 2002. Nairobi , Centre for Governance and Development.

Zaini, A. (2011) Analisis ekonomi politik swasembada gula Indonesia: Kombinasi model oligopolistik dinamika dan fungsi preferensi politik. [Online] Available from: http://repository.ipb.ac.id/bitstream/e/123456789/52873/2011aza.f;jsessionid=AD6E5D693358D2C74A1DCB0F04347B75?sequence=1.

Zvavahera, P. & Ndoda, G.R. (2014) Corporate governance and ethical behaviour: The case of the Zimbabwe Broadcasting Corporation. Journal of Academic and Business Ethics. 9, (1-8).




DOI: http://dx.doi.org/10.21082/ijas.v18n2.2017.p77-86

Refbacks

  • There are currently no refbacks.




Copyright (c) 2018 Indonesian Journal of Agricultural Science

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Indonesian Journal of Agricultural Science (IJAS) by http://ejurnal.litbang.pertanian.go.id/index.php/ijas is licenced under a http://creativecommons.org/licenses/by-sa/4.0/ 

Publisher: Indonesian Agency for Agricultural Research and Development

Editorial Office:

Indonesian Institute for Agricultural Technology Transfer

Jalan Salak No. 22 Bogor-Indonesia

ISSN:1411-982X

E-ISSN:2354-8509

   

View Visitors Stats