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Agricultural Protection In Indonesia


Author Info

  • George Fane
  • Peter Warr


Throughout the second half of the 20th century, Indonesia's trade policies favoured the modern manufacturing sector relative to agriculture. Within agriculture, they favoured import-competing sectors at the expense of export-competing sectors. Rice is the most important import-competing agricultural sector and, until 2000, assistance to rice growers came mainly from input subsidies. The extent of subsidies to rice and other import-competing agriculture varied with foreign exchange availability and the government's budgetary circumstances: 'good' times produced more interventionist policies and 'bad' times produced less government intervention. Since the mid-1980s, the aggregate bias in favour of manufacturing has declined greatly and agriculture is now only lightly taxed relative to manufacturing. This change resulted from the reduction in manufacturing protection that has characterised this period and from the increased protection of rice and sugar occurring after 2000. We attempt to explain the political forces underlying these changes in trade policy.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Bulletin of Indonesian Economic Studies.

Volume (Year): 44 (2008)
Issue (Month): 1 ()
Pages: 133-150

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Handle: RePEc:taf:bindes:v:44:y:2008:i:1:p:133-150

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Cited by:
  1. Peter Warr & Arief Anshory Yusuf, 2013. "Fertilizer Subsidies and Food Self-sufficiency in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201309, Department of Economics, Padjadjaran University, revised May 2013.
  2. Warr, Peter G., 2009. "Agricultural Protection and Poverty in Indonesia: A General Equilibrium Analysis," Agricultural Distortions Working Paper 52788, World Bank.
  3. Peter Warr & Arief Anshory Yusuf, 2013. "World Food Prices and Poverty in Indonesia," Departmental Working Papers 2013-07, The Australian National University, Arndt-Corden Department of Economics.
  4. Peter Warr & Arief Anshory Yusuf, 2009. "International food prices and poverty in Indonesia," Departmental Working Papers 2009-19, The Australian National University, Arndt-Corden Department of Economics.


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