The Role of Indonesia-ASEAN Trade in Achieving Food Security in Indonesia

Dilip Dutta and Fajar Hirawan

No 2017-13, Working Papers from University of Sydney, School of Economics

Abstract: This paper examines the role of Indonesia-ASEAN trade as one of the opportunities for the Indonesian government to realise food security in the country. Focusing on four market share criteria–competitiveness effect, initial country/regional market effect, initial product/commodity effect, and adaptation/world growth effect–the Constant Market Share (CMS) analysis investigates trading activity between Indonesia and ASEAN before and after the global food crisis during 2007-08. Results show that trading activity between Indonesia and other ASEAN member countries experienced different structures and patterns in terms of the above market share criteria. The results recommend for the Indonesian government to develop an effective trade strategy by analysing the track record of their products, particularly their products’ competitiveness, trade value growth and market share. This paper also suggests that Indonesian government should conduct policy harmonisation, in the form of trade facilitation, tariff reduction and elimination, as well as services and trade liberalisation, to optimise the food security achievement in Indonesia.

Keywords: Indonesia; ASEAN; Regional Trade; Food Security; Global Food Crisis; Competitiveness; Food Policy (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-sea
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