The Rise in International Food Prices: The Impact on and Policy Implications for Indonesian Food Security

Rina Oktaviani and Ratna W. Asmarantaka

No 331963, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The rise of international food prices have always been a challenge for Indonesia, especially when they apply to products important for food security. The impact of increased price on Indonesian macro and sectoral economic performance is evaluated with a computable general equilibrium model for Indonesia. In addition, a simultaneous equations model (2SLS) is used to assess the economic behavior and the impact of increased price at the farmer household level. The results reveal that increased price is associated with an increase in real GDP, real household consumption, real wages of farmers and the consumer price index, and sustained food security for rice and maize. However, for soybeans higher prices led to decreased food security because of the high import share. At the level of Farmer Households (RTP), an increase of international food prices is associated with increases in consumption, farm wages and income. The policy of strengthening Indonesian food security can be implemented through coordinated agricultural policy within central and local governments, improvements in agricultural infrastructures and institutions, and by strengthening and adopting research and development to improve food crop productivity.

Keywords: Food Security and Poverty; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 15
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/331963/files/5046.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331963

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().