scholarly journals IMPACT OF IMPORT TARIFF POLICIES ON RICE DEMAND AND SUPPLY IN INDONESIA

2020 ◽  
Vol 7 (2) ◽  
pp. 59-67
Author(s):  
Akhmad Pide

Indonesia’s economic policies cannot be separated to its rice policies since rice is the staple food for Indonesian people. The paper aims to find out the impact of rice import tariff policies on rice demand and supply in Indonesia. The research uses time series data in 1981-2018. Data obtained are analyzed using econometric model with simultaneous equation system. Estimation results show that rice supply was positively and significantly influenced by grain rice price in farmer level, amount of rice production, and rice supply of the previous year. Meantime, domestic rice demand was negatively and significantly influenced by domestic rice price and positively and significantly influenced by domestic rice demand of the previous year. The result of policy simulation indicates that scenario of policy combination through an increase in rice import tariff and government purchase price brings a sizeable impact on the increase in domestic rice production and rice demand and supply. Therefore, Indonesia needs to conduct protection to farmers in the form of rice import tariff imposition as well as government purchase price.

Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Habibullah Magsi

This research paper aims to examine the relationship between CO2, temperature, area, fertilizers and rice production in Pakistan. This study used Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests to check the order of integration of each variable. The cointegration analysis with ARDL bounds testing approach is used to examine the impact of climate change on rice production in Pakistan over time series data from the period 1968 to 2014. The parameter stability test of the model is also checked at the end. The results of estimation show that the important variables of the study are cointegrated demonstrating the presence of long-run association among them. Furthermore, climate change factors, e.g. CO2 and temperature have a long-run and short-run positive effect on the production of rice in Pakistan. This present work is original and it is first time empirically tested the impact of climate change on rice production in Pakistan. The annual time series data of 47 years enhances the validity of the empirical findings. The most fruitful finding of this research is that rice production in Pakistan is positively influenced by emission of carbon dioxide (CO2) at 5 percent significance level in both long-run and short-run.


2012 ◽  
Vol 15 (2) ◽  
Author(s):  
. Edison ◽  
Pera Nurfathiyah

The rice production growth that was gotten by Jambi Province with production growth rate of 0,54% can not fully contribute society need that was continuously increasing. Therefore, it can cause unbalance between supply and demand. The objective of research is to know the picture of rice supply and demand and influenced variables on rice supply and demand in Jambi. The simultan model was used to predict factors that influenced rice supply and demand. The research was conducted in Jambi Province on September to December 2009. The primary data needed in this research was time series data from 1996 – 2008. The research result showed that simultaneously rice price factor, the number population and income per capita was significant on demand. And also factor of average rice price, Bangkok rice price, import rice price, hybrid seed, acreage, season, and time trend were influencing significantly on supply. From elasticity value was fortunately all variables that was influencing rice demand and supply in Jambi Province was inelastic. Kata Kunci : rice demand and supply, rice price, elasticit


2017 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Silvia Sari Busnita, Rina Oktaviani, Tanti Novianti

Food security issue after 2008 global-crisis is something relate with the climate change phenomenon which had worsened on the last few decades. The impact of global climate change can be seen from the fluctuation of main crops production yield in tropical countries. This has affected the food price fluctuations particularly on the grain price, both international and domestic markets. The rice-commodity, known for its thin market characteristics, is now also experiencing the fluctuation of production, its productivity and also the rice price. Considering the importance of rice as the main staple food in Indonesia, the purpose of this research is to identify the Indonesia’s rice price fluctuation (volatility) and to investigate how far climate change affects the Indonesian paddy production and rice price volatility. By applying monthly time-series data from 2007 to 2014, this research used ARCH-GARCH methods to find out the rice price volatility and VECM (Vector Error Correction Model) to investigate the impact of climate change phenomenon on the Indonesian paddy production, as well as rice price volatility both in the short-run and long-run. The result is important for the stakeholders and government in preventing the risk and uncertainty condition of paddy production and rice price fluctuation caused by climate change


2020 ◽  
Vol 37 (2) ◽  
pp. 141
Author(s):  
Veralianta Br Sebayang ◽  
Bonar Marulitua Sinaga ◽  
NFN Harianto ◽  
I Ketut Kariyasa

<strong>English</strong><br />Maize is a strategic commodity for Indonesia. In line with the consumption pattern, the domestic demand for maize has changed from previously dominated by household consumption to presently dominated by raw material for feed and food processing industries. The maize demand of the processing industry increases rapidly, outpaced   domestic production growth, that makes Indonesia must import maize in an increasing amount. This study aims to determine the impact of government policy on maize production which is the input of the maize processing industry. The analysis was conducted using an econometric simultaneous equation system model which was estimated with the two stages least squares technique using time series data of 1985-2017. The results show that the maize harvest area is negatively related with labor wage and urea price, and is positively related with the maize farm price. Maize productivity is positively related with quantity of urea fertilizer and hybrid seeds. but negatively related with composite seeds. The scenario of subsidizing urea prices and hybrid seed, raising import tariffs can increase the availability maize for processing industries as indicated by increasing domestic production and decreasing maize imports.<br /><br /><br /><strong>Indonesian</strong><br />Jagung termasuk komoditas strategis untuk Indonesia. Seiring dengan perubahan pola konsumsi, permintaan jagung dalam negeri berubah dari sebelumnya didominasi oleh konsumsi rumah tangga menjadi kini didominasi oleh bahan baku industri pengolahan pakan dan pangan.  Kebutuhan jagung untuk bahan baku industri pengolahan meningkat pesat, bahkan melampaui peningkatan produksi jagung dalam negeri, sehingga Indonesia terpaksa mengimpor jagung dalam jumlah yang terus meningkat. Penelitian bertujuan untuk mengetahui dampak kebijakan pemerintah terhadap produksi jagung yang menjadi input industri pengolahan jagung. Metode analisis yang digunakan ialah model ekonometrika sistem persamaan simultan yang diduga dengan teknik two stages least squares memakai data deret waktu 1985-2017. Hasil analisis menunjukkan bahwa luas areal panen jagung berhubungan negatif dengan upah buruh tani dan harga pupuk urea, sebaliknya, berhubungan positif terhadap harga jagung di tingkat petani. Produktivitas jagung berhubungan positif dengan volume penggunaan pupuk urea dan benih hibrida, namun berhubungan negatif dengan benih komposit. Skenario kebijakan subsidi harga pupuk urea, subsidi harga benih hibrida, dan kenaikan tarif impor dapat meningkatkan ketersediaan bahan baku industri pengolahan dan peternak mandiri sebagaimana ditunjukkan oleh kenaikan produksi dalam negeri dan penurunan impor jagung.


Author(s):  
Aulia Isnaini Putri ◽  
Bonar M Sinaga ◽  
Nia Kurniawati Hidayat ◽  
Hastuti Hastuti

Maize is the second largest contributor to GDP after rice in the food crops subsector in Indonesia. The domestic maize production is unable to meet the high demand. Therefore, there is a gap or imbalance between supply and demand and maize import cannot be avoided. The implementation of ASEAN Free Trade Area has reduced and eliminated tariff barriers. The objectives of the study are to: (1) identify factors that affect the supply and demand for maize, and (2) analyze the impact of changes in maize import tariff on the supply, demand, and welfare of producers and consumers of maize in Indonesia. The study used time series data from 1986-2010. Indonesian Maize Trade model is constructed as a system of simultaneous equations and estimated method using Two Stage Least Squares (2SLS).The elimination of Indonesian maize import tariff from AFTA or non AFTA countries is leading to decreased producer surplus. Therefore, the combination of eliminating Indonesian maize import tariff from AFTA and non AFTA countries, decreasing the retail price of urea fertilizer, and increasing maize prices at the farm level can compensate the decrease of producer surplus so that the welfare can be increased(net surplus).


Author(s):  
Nor Asmat Ismail ◽  
Zulkifli Abdul Rahim

Muda Irrigation Area is one of the main rice granaries in Malaysia and is the largest contributor to the country's rice production. It receives the highest subsidies from the government through various types of the rice subsidy scheme. Various efforts and approaches have been implemented through government expenditure (rice subsidy scheme) to ensure that Muda area continues to produce rice for the country. This study aims to examine the effectiveness of rice subsidy scheme given by the government on the changes in production and income of farmers in the Muda area. Among the subsidy schemes are minimum guaranteed prices, rice subsidy scheme and fertilizer subsidy scheme. Independent variables such as rice plantation areas and the number of labors (farmers) have been included in the model. This study focuses on the effect of subsidy scheme on paddy production by applying cointegration test and correction errors according to Autoregressive Distributed Lag (ARDL) approach to validate the existence and direction of the relationship between all variables by using time series data 37 years (1980-2016). The results showed that there was a long-run relationship (cointegration) between government expenditure (rice subsidy scheme) on rice production in the Muda Area. The study suggests that government intervention, need to be continued but needs to be transformed so that the rice industry become more competitive and able to become producers and exporters of rice to foreign countries.


2018 ◽  
Vol 23 (2) ◽  
pp. 93-100
Author(s):  
Edy Siswanto ◽  
Bonar Marulitua Sinaga ◽  
. Harianto

Rice demand in Indonesia increases every year so it makes the big gap between production and consumption of rice. Excess demand is covered by rice import which causes domestic rice price responds the global rice price movements that harm both producers and consumers. So, the policy instruments that could reduce dependence on rice import and can provide benefits to producers and consumers of rice is very needed. The objectives of this study were to analyze the impact of rice policy on rice market and the welfare of rice producers and consumers. This study uses annual time series data and simultaneous equations model with two stages least squares method. The analysis showed that rice policy changes can influence condition of Indonesia’s rice market and that the increase in Government Purchase Price (HPP), agricultural credit, and fertilizer subsidy can improve the welfare of the producers and consumers.


2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.


2020 ◽  
Vol 19 (6) ◽  
pp. 1015-1034
Author(s):  
O.Yu. Patrakeeva

Subject. The paper considers national projects in the field of transport infrastructure, i.e. Safe and High-quality Roads and Comprehensive Plan for Modernization and Expansion of Trunk Infrastructure, and the specifics of their implementation in the Rostov Oblast. Objectives. The aim is to conduct a statistical assessment of the impact of transport infrastructure on the region’s economic performance and define prospects for and risks of the implementation of national infrastructure projects in conditions of a shrinking economy. Methods. I use available statistics and apply methods and approaches with time-series data, namely stationarity and cointegration tests, vector autoregression models. Results. The level of economic development has an impact on transport infrastructure in the short run. However, the mutual influence has not been statistically confirmed. The paper revealed that investments in the sphere of transport reduce risk of accidents on the roads of the Rostov Oblast. Improving the quality of roads with high traffic flow by reducing investments in the maintenance of subsidiary roads enables to decrease accident rate on the whole. Conclusions. In conditions of economy shrinking caused by the complex epidemiological situation and measures aimed at minimizing the spread of coronavirus, it is crucial to create a solid foundation for further economic recovery. At the government level, it is decided to continue implementing national projects as significant tools for recovery growth.


2019 ◽  
Vol 5 (1) ◽  
pp. 18-25
Author(s):  
Isah Funtua Abubakar ◽  
Umar Bambale Ibrahim

This paper attempts to study the Nigerian agriculture industry as a panacea to growth as well as an anchor to the diversification agenda of the present government. To do this, the time series data of the four agriculture subsectors of crop production, livestock, forestry and fishery were analysed as stimulus to the Real GDP from 1981-2016 in order to explicate the individual contributions of the subsectors to the RGDP in order to guide the policy thrust on diversification. Using the Johansen approach to cointegration, all the variables were found to be cointegrated. With the exception of the forestry subsector, all the three subsectors were seen to have impacted on the real GDP at varying degrees during the time under review. The crop production subsector has the highest impact, however, taking size-by-size analysis, the livestock subsector could be of much importance due to its ability to retain its value chain and high investment returns particularly in poultry. Therefore, it is recommended that, the government should intensify efforts to retain the value chain in the crop production subsector, in order to harness its potentials optimally through the encouragement of the establishment of agriculture cottage industries. Secondly, the livestock subsector is found to be the most rapidly growing and commercialized subsector. Therefore, it should be the prime subsector to hinge the diversification agenda naturally. Lastly, the tourism industry which is a source through which the impact of the subsector is channeled to the GDP should be developed, in order to improve the impact of such channel to GDP with the sole objective to resuscitate the forestry subsector.


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