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

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

Analisis Partisipasi dan Dampak Corporate Social Responsibility “Bank Sampah” PT Tirta Investama Aqua Klaten terhadap Kesejahteraan Masyarakat

Pengelolaan sampah rumah tangga Desa Karanglo dan Desa Keprabon ialah bank sampah dengan konsep menabung sampah oleh masyarakat. Tujuan penelitian ini adalah mengetahui tingkat partisipasi pada bank sampah, mengetahui faktor yang berpengaruh terhadap partisipasi masyarakat dalam bank sampah, dan menganalisis pengaruh bank sampah terhadap kesejahteraan masyarakat. Penelitian menggunakan metode deskriptif untuk mengetahui partisipasi masyarakat, model logit untuk mengetahui faktor yang berpengaruh terhadap partisipasi, regresi (linier dan logit) untuk dampak bank sampah pada ekonomi, sosial, dan lingkungan. Sampel yang digunakan sebanyak 87 rumah tangga Karanglo dan 90 rumah tangga Keprabon. Hasil penelitian menunjukkan mayoritas masyarakat menabung sampah plastik sebanyak satu kilogram per setor. Faktor-faktor yang berpengaruh terhadap partisipasi masyarakat adalah umur, jarak, dan desa. Dampak ekonomi dari bank sampah ialah rata-rata pendapatan masyarakat Desa Karanglo Rp 61.600/tahun dan Desa Keprabon Rp 31.300/tahun. 71,2% menjawab ada peningkatan hubungan antar masyarakat akibat bank sampah. 83,1% menjawab ada peningkatan kebersihan lingkungan akibat bank sampa