Fertilizer Subsidies and Food Self-sufficiency in Indonesia
AbstractIndonesia is a net importer of almost all of its staple foods. National self-sufficiency in food, especially the mainstaple, 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 self-sufficiency goals. Recently, it has alsoused output protection, especially in rice, for the same purpose. This paper utilizes a multi-sectoral, multi-household 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 toachieve 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.
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Bibliographic InfoPaper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 201309.
Length: 41 pages
Date of creation: May 2013
Date of revision: May 2013
Indonesia; Fertilizer subsidies; Food self-sufficiency;
Other versions of this item:
- Peter Warr & Arief Anshory Yusuf, 2013. "Fertilizer Subsidies and Food Self-Sufficiency in Indonesia," Departmental Working Papers 2013-08, The Australian National University, Arndt-Corden Department of Economics.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-05-22 (Agricultural Economics)
- NEP-ALL-2013-05-22 (All new papers)
- NEP-SEA-2013-05-22 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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