Medium- and long-term prospects of rice supply and demand in Indonesia
2002
Sudaryanto, T. | Simatupang, P. | Irawan, B. | Swastika, D.K.S.
The rice industry remains a strategic sector in the Indonesian economy in terms of its contribution to economic growth, food security, and poverty alleviation. Government policies for the rice sector have changes significantly from "high support and high protection" since the 1970s to "low support and low protection" since the mid-1980s. In line with changes in the policy environment, rice productivity growth has tended to decline. However, under the prevailing world market price, rice farming shows a comparative and competitive advantage. For the medium- and long-term perspective, the Indonesian rice supply cannot meet increasing rice demand, which leads the country to import around 1-3 million tons of rice annually. Under the current policy environment, an appropriate strategy to stimulate rice production is through land development and innovation systems.
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