IDEAS home Printed from https://ideas.repec.org/a/taf/bindes/v38y2002i1p93-117.html
   My bibliography  Save this article

Deregulation Of Indonesia'S Interregional Agricultural Trade

Author

Listed:
  • Roger Montgomery
  • Sudarno Sumarto
  • Sulton Mawardi
  • Syaikhu Usman
  • Nina Toyamah
  • Vita Febriany
  • John Strain

Abstract

In January 1998 a significant policy reform deregulated agriculture in Indonesia. It sought to eliminate distorting local monopolies, monopsonies, trade restrictions, interisland maximum shipment quotas and other barriers that effectively lowered farmgate prices. Many of these had been constructed to benefit the Soeharto family and their business cronies. The reform also sought to lower local taxes and levies targeted at agriculture. This paper demonstrates that deregulation eliminated many of the distorting taxes and levies, and dismantled many (but not all) local monopolies, monopsonies and quotas. Farmers typically now receive a higher percentage of the destination market price. Many also receive significantly higher real prices for their products, although this differs dramatically across commodities. Local governments complained about local revenues lost through the reforms. Detailed budget analyses reveal that deregulation did not substantially harm local government budgets; instead, other factors caused a decline in the local-source revenue contribution to local budgets.

Suggested Citation

  • Roger Montgomery & Sudarno Sumarto & Sulton Mawardi & Syaikhu Usman & Nina Toyamah & Vita Febriany & John Strain, 2002. "Deregulation Of Indonesia'S Interregional Agricultural Trade," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(1), pages 93-117.
  • Handle: RePEc:taf:bindes:v:38:y:2002:i:1:p:93-117
    DOI: 10.1080/000749102753620301
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000749102753620301
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hadi Soesastro & M. Chatib Basri, 1998. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 3-54.
    2. Reza Siregar, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 277-303.
    3. Blane Lewis, 2001. "The New Indonesian Equalisation Transfer," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 325-343.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kelly Bird & Hal Hill & Sandy Cuthbertson, 2008. "Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia," The World Economy, Wiley Blackwell, vol. 31(7), pages 947-968, July.
    2. Aswicahyono, Haryo & Bird, Kelly & Hill, Hal, 2009. "Making Economic Policy in Weak, Democratic, Post-crisis States: An Indonesian Case Study," World Development, Elsevier, vol. 37(2), pages 354-370, February.
    3. Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September.
    4. Sumarto, Sudarno & Suryahadi, Asep & Arifianto, Alex, 2003. "Governance and Poverty Reduction: Evidence from Newly Decentralized Indonesia," MPRA Paper 58023, University Library of Munich, Germany.
    5. Reza Siregar, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 277-303.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:bindes:v:38:y:2002:i:1:p:93-117. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CBIE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.