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Indonesian Rice Production: Policies And Realities

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  • Pantjar Simatupang
  • C. Peter Timmer

Abstract

Indonesian rice production grew rapidly between 1977 and 1982, but the self-sufficiency achieved in 1984 was short-lived. Growth declined gradually from about 1982, eventually stabilising at a low rate in the late 1990s. This paper discusses factors that have influenced these outcomes over the last five decades, in an attempt to inform policy makers interested in trying to restore self-sufficiency. The earlier experience showed that self-sufficiency was technically feasible, but also that its achievement was costly, both fiscally and in economic opportunities forgone. Little appears to have changed in this regard, and recent attempts to shift this cost to consumers by raising rice prices have increased poverty. We show that increases in rice production could best be achieved by rehabilitating irrigation infrastructure and revitalising research and extension activities. However, large investments by the government in rice should not be undertaken in the absence of thorough economic cost-benefit analysis.

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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: 65-80

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Handle: RePEc:taf:bindes:v:44:y:2008:i:1:p:65-80

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Cited by:
  1. Oktaviani, Rina & Amaliah, Syarifah & Ringler, Claudia & Rosegrant, Mark W. & Sulser, Timothy B., 2011. "The impact of global climate change on the Indonesian economy:," IFPRI discussion papers 1148, International Food Policy Research Institute (IFPRI).
  2. World Bank, 2010. "Indonesia : Agriculture Public Expenditure Review 2010," World Bank Other Operational Studies 13069, The World Bank.

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