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Food Security vs. Food Self-Sufficiency: The Indonesian Case

Author

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  • Peter Warr
Abstract
Food security is an important social objective and relying on international food markets to meet the needs of Indonesia's growing population is precarious. The policy of restricting food imports through tariffs or quantitative restrictions promotes the goal of food self-sufficiency, but does so at the cost of reducing the food security of the most vulnerable people – the poorest net consumers of rice. These policies reduce imports through the mechanism of raising the domestic price. The poorest consumers bear the greatest burden from this policy because they are the people for whom expenditures on food form the largest proportion of their household budgets. A preferable strategy for raising self-sufficiency is to promote improved agricultural productivity. This reduces imports by raising agricultural output but does so without raising the domestic price of food and so without creating a conflict between the goals of higher levels of self-sufficiency on the one hand and food security and poverty reduction on the other. Unfortunately, Indonesia's commitment to raising agricultural productivity has seemingly waned. Finally, Indonesia has already demonstrated that practical mechanisms can be designed for shielding poor consumers from price increases that would otherwise be harmful, by designing systems of Conditional Cash Transfers.

Suggested Citation

  • Peter Warr, 2011. "Food Security vs. Food Self-Sufficiency: The Indonesian Case," Departmental Working Papers 2011-04, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2011-04
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2011/wp_econ_2011_04.pdf
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    Citations

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    Cited by:

    1. Jin Guo & Tetsuji Tanaka, 2020. "The Effectiveness of Self-Sufficiency Policy: International Price Transmissions in Beef Markets," Sustainability, MDPI, vol. 12(15), pages 1-23, July.
    2. Peter Warr & Arief Anshory Yusuf, 2014. "Fertilizer subsidies and food self-sufficiency in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 571-588, September.
    3. Harold Alderman & Ugo Gentilini & Ruslan Yemtsov, 2018. "The 1.5 Billion People Question," World Bank Publications - Books, The World Bank Group, number 27907.
    4. Timmer, Peter C. & Hastuti, Hastuti & Sumarto, Sudarno, 2016. "Evolution and Implementation of the Rastra Program in Indonesia," MPRA Paper 81018, University Library of Munich, Germany, revised 30 Sep 2017.
    5. Warr, Peter & Yusuf, Arief Anshory, 2014. "World food prices and poverty in Indonesia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), January.
    6. Rigod, Boris & Tovar, Patricia, 2019. "Indonesia–Chicken: Tensions between International Trade and Domestic Food Policies?," World Trade Review, Cambridge University Press, vol. 18(2), pages 219-243, April.
    7. Vasilii Erokhin, 2017. "Self-Sufficiency versus Security: How Trade Protectionism Challenges the Sustainability of the Food Supply in Russia," Sustainability, MDPI, vol. 9(11), pages 1-17, October.
    8. Jin Guo & Tetsuji Tanaka, 2020. "Examining the determinants of global and local price passthrough in cereal markets: evidence from DCC-GJR-GARCH and panel analyses," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-22, December.
    9. Anderson, Kym & Strutt, Anna, 2012. "Asia?s Growth, the Changing Geography of World Trade, and Food Security: Projections to 2030," CEPR Discussion Papers 8950, C.E.P.R. Discussion Papers.
    10. Nyhodo, Bonani & Grinsted Jensen, Hans & Sandrey, Ron, 2013. "South Africa’s economy-wide effects as result of increased total factor productivity (TFP) on the country’s agricultural sector: a preliminary investigation," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160581, African Association of Agricultural Economists (AAAE).

    More about this item

    Keywords

    Food security; poverty incidence; rice policy;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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