THE EFFICIENCY OF PUBLIC SERVICE OBLIGATION FOR FOOD SUBSIDY IN INDONESIA: REVIEW OF COST STRUCTURE ANALYSIS

Irwan Trinugroho and Asri Laksmi Riani
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Asri Laksmi Riani: Faculty of Economics Sebelas Maret University, Indonesia

Perspectives of Innovation in Economics and Business (PIEB), 2011, vol. 7, issue 1, 45-47

Abstract: The paper reviews the efficiency of food subsidy in Indonesia based on cost structure analysis. Using the comparison between cost of good of government and cost of good of National Logistics Board appointed to manage and channel the subsidy. The level of efficiency has decreased in the recent years because of increase in costs of exploitation, management cost and interest expense. It is suggested that government has to determine the cut-off point as a feasibility assessment of cost of subsidy.

Keywords: Food subsidy; efficiency; cost structure; Indonesia. (search for similar items in EconPapers)
JEL-codes: H21 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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