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The Efficiency Of Public Service Obligation For Food Subsidy In Indonesia: Review Of Cost Structure Analysis

Author

Listed:
  • IRWAN TRINUGROHO

    (Faculty of Economics Sebelas Maret University, Indonesia)

  • ASRI LAKSMI RIANI

    (Faculty of Economics Sebelas Maret University, Indonesia)

Abstract

The paper reviews the efficiency of food subsidy in Indonesia based on cost structure analysis. Using the comparison between cost of good of government and cost of good of National Logistics Board appointed to manage and channel the subsidy. The level of efficiency has decreased in the recent years because of increase in costs of exploitation, management cost and interest expense. It is suggested that government has to determine the cut-off point as a feasibility assessment of cost of subsidy.

Suggested Citation

  • Irwan Trinugroho & Asri Laksmi Riani, 2011. "The Efficiency Of Public Service Obligation For Food Subsidy In Indonesia: Review Of Cost Structure Analysis," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 7(1), pages 45-47, January.
  • Handle: RePEc:pdc:jrpieb:v:7:y:2011:i:1:p:45-47
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    Citations

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    Cited by:

    1. Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    2. Basu, Karna & Wong, Maisy, 2012. "Evaluating Seasonal Food Security Programs in East Indonesia," MPRA Paper 51219, University Library of Munich, Germany.

    More about this item

    Keywords

    Food subsidy; efficiency; cost structure; Indonesia.;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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