DEREGULATION OF INDONESIA'S INTERREGIONAL AGRICULTURAL TRADE

Roger Montgomery, Sudarno Sumarto (), Sulton Mawardi, Syaikhu Usman, Nina Toyamah, Vita Febriany and John Strain

Bulletin of Indonesian Economic Studies, 2002, vol. 38, issue 1, 93-117

Abstract: In January 1998 a significant policy reform deregulated agriculture in Indonesia. It sought to eliminate distorting local monopolies, monopsonies, trade restrictions, interisland maximum shipment quotas and other barriers that effectively lowered farmgate prices. Many of these had been constructed to benefit the Soeharto family and their business cronies. The reform also sought to lower local taxes and levies targeted at agriculture. This paper demonstrates that deregulation eliminated many of the distorting taxes and levies, and dismantled many (but not all) local monopolies, monopsonies and quotas. Farmers typically now receive a higher percentage of the destination market price. Many also receive significantly higher real prices for their products, although this differs dramatically across commodities. Local governments complained about local revenues lost through the reforms. Detailed budget analyses reveal that deregulation did not substantially harm local government budgets; instead, other factors caused a decline in the local-source revenue contribution to local budgets.

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000749102753620301 (text/html)
Access to full text is restricted to subscribers.

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:taf:bindes:v:38:y:2002:i:1:p:93-117

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CBIE20

DOI: 10.1080/000749102753620301

Access Statistics for this article

Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir

More articles in Bulletin of Indonesian Economic Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().