ANALYSIS THE EFFECT OF PRICE POLICY OF PADDY, RICE, AND FERTILIZER WITH DECREASING RICE IMPORT TARIFF BY BORDERING IMPORT QUOTA

• Main Author: SURYANDARI (NIM : 23411037); Pembimbing :, ETIKA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18425
• Institution: Institut Teknologi Bandung

Rice is one of staple food in Indonesia. Rice price is very influenced by paddy's productivity. Indonesian government give market intervention with the price policies to stabilize the price of paddy and rice. When the price of paddy is going fall significantly, Bulog buys paddy from the farmers at the floor price called HPP (Government Buying Price). But when the price of rice is going rise too high, Bulog increases supply with selling the rice through a program called OPM (Pure Market Operation). Those policy involve the government's rice stocks in Bulog's warehouse. The government also perform a ceiling price policy on fertilizer called HET (Highest Retail Price). It's done by giving subsidy, so the farmers may buy the fertilizer under the HET. Rice price also influenced by rice import policy. In this time, the government, through Ministry of Trade, also doing quota impor policy in order to give the border of rice import quantity. <br /> <br /> <br /> The aims of this research are to analyze the impacts of paddy, rice, and fertilizer price policy with indicators. The research is finished by using Computable General Equilibrium (CGE) model with modify to the model has been developed by Robinson et. al. (1997), Cororaton (2004), and Syahadat (2010). <br /> <br /> <br /> Before doing simulations, the base solution will be compared between the policy with quota import and without quota import. It's simulated eight scenarios that consist of the combination of policies, there are decreasing and increasing on paddy's productivity, also decreasing rice import tariff. The kind of policy performed, there are without policy and doing rice and fertilizer policy together (Bulog's Pure Market Operation, paddy's Government Buying Price, fertilizer's ceiling price). The impact's indicators to be analized are 1) government's account indicators, 2) indicators on the price and quantity of paddy, rice, and fertilizzer, and 3) macro economic indicators. <br /> <br /> <br /> This research brings the results that when decreasing productivity of rice, the best scenario is fourth scenario that government decreasing the rice tariff import, besides doing rice and fertilizer policy together (Bulog's Pure Market Operation, paddy's Government Buying Price, fertilizer's ceiling price). When increasing productivity of rice, the best scenario is sixth scenario that government does not decreasing the rice tariff import, besides doing rice and fertilizer policy together (Bulog's Pure Market Operation, paddy's Government Buying Price, fertilizer's ceiling price). <br /> <br /> <br /> When rice import doesn't bordered (not import quota), the government expenditure and revenue will be changed. Besides, it's also make the rice consumer price decreasing.