Fertilizer Subsidies and Food Self-Sufficiency in Indonesia

Peter Warr and Arief Yusuf

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: Indonesia is a net importer of almost all of its staple foods. National selfsufficiency in food, especially the main staple, rice, is a core objective of economic policy. Poverty reduction is also a core policy objective. Since the 1970s, Indonesia has used agricultural input subsidies, especially on fertilizer, to stimulate agricultural production, largely in pursuit of its selfsufficiency goals. Recently, it has also used output protection, especially in rice, for the same purpose. This paper utilizes a multi-sectoral, multihousehold general equilibrium model of the Indonesian economy to study the trade-offs between the goals of self-sufficiency and poverty reduction when two alternative means are used to achieve them: a fertilizer subsidy, on the one hand, and output protection, on the other. It does this by analyzing the aggregate and distributional effects of these two sets of policies and by comparing their effects with non-intervention. The analysis shows that, in terms of its effects on poverty, a fertilizer subsidy can be a more effective instrument for achieving the goal of rice self-sufficiency than final product import restrictions.

Keywords: Indonesia; fertilizer subsidies; food self-sufficiency; general equilibrium modeling. (search for similar items in EconPapers)
JEL-codes: D58 F14 I32 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://crawford.anu.edu.au/acde/publications/publ ... /wp_econ_2013_08.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Fertilizer Subsidies and Food Self-sufficiency in Indonesia (2016)
Journal Article: Fertilizer subsidies and food self-sufficiency in Indonesia (2014)
Working Paper: Fertilizer Subsidies and Food Self-sufficiency in Indonesia (2013)
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:pas:papers:2013-08

Access Statistics for this paper

More papers in Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Prema-chandra Athukorala ().