MENGENALI PENGARUH SUBSIDI PUPUK PADA PEREKONOMIAN BERAS DI INDONESIA

• Main Author: Ahmad, Ardiman
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/4755
• Institution: Institut Teknologi Bandung

<b>Abstract:<p align=\"justify\"> <br /> In many countries the food sector has always been the target of government intervention. Different forms of policies and strategies have been undertaken by many countries to realize these intervention. Indonesia also has been undertaking intervention that are considered relevant to the interest of the national food system: one of the most important form of intervention is by providing subsidies for fertilizer, which is considered to be a realistic approach. <br /> Practically government intervention to the food sector; particularly rice, has taken place since the early days of the country \'s indepence, whereby subsidy is given to rice. The supply of rice has always been strongly dependent on import. The government is well aware that food supply security is an important factor for national stability. Since 1970 the price of rice has beenhighly administered, formulated and implemented in a comprehensive subsidy policy scheme. <br /> The described policy has made Indonesia self sufficient in its food supply, particularly rice. Extensification and intensification programs in rice production are important factors that have made such condition possible. Intensive efforts has been undertaken to support the mentioned programs through the intensive use of chemical fertilizers, which is one of the key element in the program. In the effort to promote the use chemical fertilizers the government provide price subsidy to fertilizer. <br /> In view of what have been said, this study is directed analyse the effect of the mentioned subsidy on the economy of rice and the subsequent impact on the overall economy: <br /> First, attention is directed to the demand and supply of rice; then the influence of the subsidy on different segments of the society is analysed Further analysis is made to see whether the subsidy policy is able to drive the overall economy of the country toward a stronger economic structure. Finally, an analysis was made to see what would be the effect of removing the subsidy to the different segment of the society. <br /> With the set of analysis an attempt is made to describe and to point out the position and the role of the agriculture sector in the overall economy of the country. <br /> The following conclusions can be drawn from the study : <br /> 1. Essentially rice producers (farmers) are not quite affected by change in the price offertilizers, provided that there is no significant effect to the terms of trade of the commodity that they sell, i.e. rice. <br /> 2. To the rice consumers, changes in price of rice due to changes in the fertilizer price have different effects, depending on their income level. The lower middle and lower income group would be significantly affected in their calory intake from rice if there were price increases. To the upper middle and high income groups changes in the price of rice do not have significant effect to their level of rice consumption. <br /> 3. The view that price subsidy to fertilizer is a distortive policy does not seem to be quite correct. The implementation of that policy has been successful in driving rice production towards self sufficiency. At the macro level, the implementation of the policy has also been able to play as a important supporting factor towards the structural transformation of the Indonesia economy. The problem may not be on the subsidy policy itself but on the use of the policy as a platform to justify the stipulation of inapproriate policies for the secondary and tertiary sectors, that fail to stimulate the two sectors to strengthen their base for establishing their competetiveness. In the end this leads to the creation of a situation whereby the import base modern sectors lean on the support from the subsidized agriculture sector and other traditional primary sectors. The described situation has created an economic condition that is vulnarable to external factors, since the economy has not been built upon a platform that rest on the strength of the more controllable domestic potentials and resources, but one that floats on external supports, which is much less controllable.<p align=\"justify\">