Supporting Household Consumption in the Time of Economic Crisis: Evidence from Food Security Program in Indonesia

This study evaluates the impact of food security program – an almost universal program of Indonesian Social Safety Net Program in the time of economic crisis. Food security program aimed to protect poor households from the negative effects of economic crisis by means of highly subsidized rice. To assess the impact of the program, this study utilizes matching estimator approach combined with difference in difference method. The rich longitudinal dataset used in this study enables matching estimator and difference in difference approach to provide accurate estimate of the program’s impact on its beneficiaries. Results indicate the positive impact of the food security program on the expenditures of richer nutrient food which include meat, fish and dairy products. The program has also substantial impact on health expenditure. Nevertheless, this study also found that the program only has a limited impact to the neediest group. Improving targeting seems to be one of government’s tasks in order to increase program benefits, particularly to the poorest households.Impact evaluation, food security, Indonesia, Agricultural and Food Policy, I38,

Demand for Food of Indonesian Households: Evidence from Longitudinal Data

food demand, QUAIDS, Indonesia, Consumer/Household Economics, D11, D12,

Food Demand Analysis of Indonesian Households with Particular Attention to the Poorest

The purpose of this study is to analyze the demand responses of Indonesian households to food prices, income changes and other socioeconomic factors. The underlying assumption here is that inadequate information on household food expenditure patterns which vary across income groups and regions may have its contribution to the persistence of food insecurity. We use the Indonesian Family Life Survey data and methodologically we employ an extended form of the Quadratic Almost Ideal Demand System model which includes demographic and regional factors. Results reveal the well known pattern that food demand behavior varies significantly between urban and rural households as well as income groups. The poorest households consume relatively more staple food as well as alcohol and tobacco goods while the richest households consume relatively more meat, snack and dried food. It is shown that the poorest households’ expenditure elasticity on alcohol and tobacco is high implying that the poorest households transfer their extra resources on alcohol and tobacco goods instead of more nutritious food items. Results also show that price and expenditure elasticities have changed across time (1997-2007). Own price elasticities have increased for most food items implying that people have become more responsive to changes in prices. In contrast, the expenditure elasticity has declined for most food items (except for ‘alcohol and tobacco goods’) which would imply welfare improvement since the 1997 crisis.food demand, QUAIDS, Indonesia, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D11, D12,

WELFARE IMPACT OF HIGH-NUTRIENT FOODS’ PRICE INCREASE ON INDONESIAN HOUSEHOLDS: IS THERE A ROLE FOR OWN-FARM PRODUCTION?

Introduction/Main Objectives: Significant price increases in food items and uncertainty in the market probably have a severe impact on society, and especially on low-income households. Background Problems: The increases in food prices could have a large impact on the economy and specifically on households. Thus, this study was conducted to investigate what the demand for food, specifically high-nutrient food items, and the impact on welfare are like in Indonesian households when food prices rise. Novelty: There is a great deal of empirical research into the impact of food price changes on household welfare, however studies that have focused on high-nutrient commodities, in particular on self-produced food, are still limited. Many of the previous studies used cross-sectional data for one period but this study used two-wave longitudinal data. Research Methods: Using a large sample of data from the Indonesian Family Life Survey (IFLS), this study employed the quadratic almost ideal demand system (QUAIDS) to identify the demand pattern and applied compensating variation (CV) to understand the impact of soaring food prices on welfare changes. Findings/Results: Overall, the analysis of the impact notes that when prices increase, all household groups would experience welfare losses. The poorest households would experience less of a welfare loss than the richest households, while a larger welfare loss is suffered by households in Java and rural areas. Conclusion: For the low-income households, having their own productive farms could overcome any economic shocks threatening them. Thus, the government should support small-scale farming through such strategic policies as giving them assistance and training in how to manage a small farm

ANALYSIS ON COMPARATIVE ADVANTAGE OF AGRICULTURAL SECTOR IN KULONPROGO REGENCY

Comparative advantage is measured using economic and social values. Comparatively superior commodities mean that they are produced in an economically efficient way. Agricultural sector is the one that is prioritized in Kulonprogo Regency and, thus, purposively that region is employed as the sample of this study. Research is based on the analysis of secondary and primary data collected through interviews with 60 respondents. The respondents consist of 2 groups of rice field farmers in Lendah Sub-district, Kulonprogo Regency, which constitutes the predominant cropfield area. The analysis is conducted descriptively using the Policy Analysis Matrix method. Based on the cost-benefit analysis, rice commodity agribusines3 in Kulonprogo regency has privately generated average financial profit amounting to Rp. 2, 18 million per season. Meanwhile, it is socially and economically generating relatively large profit amounting to Rp. 4.58 million per season. The level of rice field economic efficiency amounts to 0.747. These values demonstrated that rice agribusiness has comparative advantage which means that producing rice commodities in Kulonprogo Regency is more cost effective than importing them. Key words: comparative, advantage, agricultural, secto

ANALISIS KETIMPANGAN EKONOMI MENURUT PROVINSI DI INDONESIA TAHUN 2011 – 2015

Ketimpangan ekonomi di Indonesia telah mencapai titik tertinggi dari yang pernah dilaporkan oleh BPS (Badan Pusat Statistik). Tujuan dari penelitian ini ialah menganalisis ketimpangan ekonomi di Indonesia dan mengetahui pengaruh variabel independen, IPM (Indeks Pembangunan Manusia), TPT (Tingkat Pengangguran Terbuka), kontribusi sektor pertanian dan manufaktur, serta PMDN (Penanaman Modal Dalam Negeri) dan PMA (Penanaman Modal Asing) terhadap ketimpangan ekonomi di Indonesia. Analisis ketimpangan ekonomi dilakukan dengan persamaan Entropy Theil, sedangkan analisis pengaruh variabel independen terhadap ketimpangan dilakukan dengan regresi panel. Berdasarkan perhitungan Entropy Theil diketahui bahwa sebagian besar provinsi di Indonesia tergolong ke dalam kelas ketimpangan ekonomi tinggi (didasarkan pada nilai median dari 34 provinsi). Variabel IPM, TPT dan kontribusi sektor manufaktur berpengaruh signifikan terhadap ketimpangan ekonomi di Indonesia

The Analysis of Protein Consumption Pattern in Indonesia: A Case of Own-produced Commodities

Recently, the indicator of food security in Indonesia has improved, covering not only food availability but also food utilization. The household consumption pattern has shifted from carbohydrates to other nutrients including protein, though the change is relatively insignificant. One of the ways for the households to meet their needs for protein is by farming their protein sources. Households having own-produced food will prefer their food crops especially when the foodstuff price increases. This study aims to analyze the protein food consumption pattern from either plants or animals. It applies the Quadratic Almost Ideal Demand System (QUAIDS) to estimate households’ responses towards price and expenditure changes, especially for own-produced food commodities. The results reveal that when the price of animal-based protein increases, households will likely to consume cheaper protein from plants. The value of the own price elasticity is more inelastic in rural and poor households. This indicates that when there is price upsurge, those households tend to consume self-grown protein sources. It is also suggested that the small scale farming can act as a household strategy to improve their food security

Determinants of Labor Participation and Wages toward People with Disabilities in Indonesia

Reductions in the supply of labor and wages occur to people with disabilities. Disability conditions cause a decline in productivity so that the probability of being a labor is small, risk of unemployment and loss of income. The high prevalence of disabilities in Indonesia causes inequality of labor participation and wages for disabilities in Indonesia based on the type of disabilities. The data used is Indonesia Family Life Survey (IFLS) waves 4 and 5 by pooled cross-section. The analysis methods are logit and tobit models. The results showed that communicative disabilities have a higher chance of labor participation and wages. Factors of the degree of severity, age, male, head of household, education, urban, chronic disease, ownership of insurance, and ownership of assets also affect labor participation and wages for disabilities. The labor activation program for disabilities is a succession and initiative as welfare reform, poverty alleviation and an indicator of inclusive development

Intergenerational Income and Religiosity: A Longitudinal Study of Agricultural Household in Indonesia

This study aimed to analyze the influence of religiosity and socio-economic determinant factors to income relationship between inter-generationsof farmers and their children. Data related to farmers (parents) were collected from (Indonesia Family Live Survey) IFLS-93, while data related to farmers' children was obtained by tracing in IFLS-2014. The 21-year interval is supposed to be sufficient time to grasp developments between generations. The results revealed that farmer children's households have better economic potential than that of their parents. Comparing to the poor farming households, the percentage of the poor generation is higher than non-poor farmer households. The income of parents (farmers) and the education of farmers' children are factors that play an important role in increasing the income of farmers' children, having strong (robust) and significant positive effect. Another variable that has positive significant effect is agricultural land ownership, while age, household burden, working in agriculture, and religiosity-religion have negative significant effects. Implementation of religiosity activities should be encouraging productivity and prosperity of life in accordance with the guidelines and rules in Islam

Development of an innovation ecosystem model in handling the covid-19 in Indonesia

Technological innovation in the medical area is vital when the COVID-19 pandemic strikes, including in Indonesia. One of the essential innovations is a health facility for infection testing. Through the TFRIC-19 program, several Indonesian researchers have developed a mobile laboratory named Mobile Lab Biosafety Level 2 (MBSL2). MBSL2 is one of the medical innovations from the TFRIC-19 program as a measure to handle the COVID-19 pandemic in Indonesia. TFRIC-19 is an innovation system initiated by government institutions in the RnD area. Establishing TFRIC-19 was the initial step in handling the COVID-19 pandemic in Indonesia. This research aims to identify the actor's role in developing MBSL2. The technique uses the Ecosystem Pie Model (EPM) approach for analysis. It was found that the most essential aspect of creating innovation is collaboration between involved actors