The Impact of Trade Costs in Indonesian Agri-food Sectors: An Interregional CGE Analysis

An interregional Computable General Equilibrium (CGE) approach is used to measure the impact of variable internal trade costs have on regional consumer welfare and interregional market integration within the Indonesian economy. Existing high interregional price differences in the agri-food markets suggest the presence of variable internal trade costs, which serve as effective barriers to interregional trade. Given the important role of agri-food markets in both food security and income generation for rural households, these price differences can have significant welfare impacts on both producers and consumers. Reducing the costs of trade between Indonesia\u27s various regions could facilitate interregional trade. Trade costs consist of various components, such as trade and transport margins, which vary in their welfare and distribution effects; as such, reducing each cost component is likely to yield different effects on regional welfare. To assess the extent to which aggregate trade costs may contribute to observed interregional price differences in Indonesia\u27s agri-food markets, an interregional CGE modeling framework is used to separately analyze the individual impacts of trade margin and transport margin on trade flow within the Indonesian Economy. The interregional SAM-based CGE model (IRSAM) constructed by Resosudarmo et al. (2009) for the Indonesian economy is used in this analysis. IRSAM divides the economic activities for each of Indonesia\u27s five major economic regions into 35 production sectors, 6 labor classifications, 2 types of capital, 2 types of household, local government and companies, and maintains other national accounts. In this analysis, the trade and transportation margins between regions originally imbedded in the trade and transportation sectors of the IRSAM were netted out of these sectors and isolated into separate margin accounts unique to each industry and region. Three interregional trade flow simulations are performed using the modified CGE model and the simulated output is subsequently evaluated relative to the existing baseline condition. The three simulations individually examine the economic impact of a reduction in trade margin or transport margin on a variety of micro and macroeconomic variables used to estimate policy induced trade flow and welfare impacts in each region. Specifically, the impact of trade costs under three scenarios is considered: (1) reduce trade margin to 50% of its baseline value for all agri-food commodities; (2) reduce transport margin to 50% of its baseline value for all agri-food commodities; and (3) reduce transport margin to 10% of its baseline value for all (not just agri-food) commodities. Results from these simulations varied depend upon which type of trade costs was adjusted. Reducing trade margin has higher impact to the increase of regional GDP, compared to reducing transport margin. It suggest that reducing trade margin or \u27soft infrastructure\u27 margin offers the more effective approach to improving economic outcomes across Indonesia\u27s regions. Also, reducing trade margin improved the poverty incidence for residence in all regions; however, the primary beneficiaries of this policy were those live in urban areas

Determinan Pengeluaran Rokok Elektrik di Kota Bandung

AbstrakPenelitian ini bertujuan untuk menganalisis faktor yang mempengaruhi pengeluaran rokok elektrik di Kota Bandung. Penelitian ini menggunakan Convenience Sampling dan formula Slovin, melakukan wawancara terhadap 200 pengguna rokok elektrik di Kota Bandung. Penelitian ini menggunakan metode Regresi Linear Berganda dengan STATA 12. Variabel yang digunakan adalah total pengeluaran rokok elektrik per bulan, harga alat mesin isap rokok elektrik, motivasi penggunaan rokok elektrik, jumlah rasa cairan rokok elektrik, pengetahuan mengenai resiko penggunaan rokok elektrik, dan status penggunaan ganda rokok konvensional dan rokok elektrik. Hasil regresi menunjukkan bahwa harga alat mesin isap rokok elektrik, motivasi penggunaan rokok elektrik, jumlah rasa cairan rokok elektrik berpengaruh positif dan signifikan pada peningkatan pengeluaran rokok elektrik di Kota Bandung. Sedangkan pengetahuan mengenai resiko penggunaan rokok elektrik tidak signifikan mengurangi tingkat pengeluaran rokok elektrik di kota Bandung. Penelitian ini juga menemukan bahwa status pengguna ganda rokok elektrik dan rokok konvensional berpengaruh negatif tetapi tidak signifikan pada pengeluaran rokok elektrik. Untuk mengurangi penggunaan rokok elektrik di Kota Bandung, pemerintah perlu meningkatkan kampanye kesehatan mengenai bahaya penggunaan rokok elektrik. Bahkan pemerintah seharusnya melarang penggunaan rokok elektrik karena pengaruh pengetahuan rokok elektrik yang tidak signifikan mengurangi konsumsi rokok elektrik.AbstractThis research aims to analyze the factors that affect expenditure decision on electronic cigarettes in Bandung. This research uses the Convenience Sampling and Slovin formula, interviews 200 users of e-cigarettes in Bandung. This paper uses Multiple Linear Regression (MLR) with STATA 12. Total expenditure per month in electronic cigarettes, the price of electronic cigarette suction machine tools, motivation in using electronic cigarettes, the amount of electronic cigarettes liquid taste, knowledge about the risk of using electronic cigarettes, and the status dual user of conventional cigarettes and electronic cigarettes are has been used as variables in this research. The regression result shows that the price of electronic cigarettes, motivation to use electronic cigarettes, the amount of electronic cigarettes liquid taste are positively and significantly correlated with the total expenditure per month for electronic cigarettes in Bandung. In the other hand, knowledge about the risk of using electronic cigarettes not significantly reduces electronic cigarette expenditure. This study also finds that the status of dual users of electronic cigarettes and conventional cigarettes has a negative but not significant effect on electronic cigarette expenditure. To reduce the use of electronic cigarettes, the government needs to increase health campaigns regarding the dangers of electronic cigarettes.Even the government must bans the use of electronic cigarettes because knowledge about electronic cigarettes risk has insignificant effect to reduce consumption of electronic cigarettes

Analyzing Island Province Policy on Poverty Alleviation in Maluku Province

This paper investigates the effects of island province policy based on Law No. 23 Year 2014 on Regional Autonomy particularly in article No. 27. It is stated that the island province has additional jurisdiction to manage maritime cadastral zone up to 12 miles from the coastline. To measure its influence, policies are differentiated with or without additional marine boundary areas that affect the coastal zone economic development. To estimate the cadastral zone potential, the growth of chlorophyll area is calculated as a proxy of in site economic potential for regional development

Dampak kebijakan moneter terhadap nilai tukar: Pendekatan vector error Correction Model

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DETERMINE REGIONAL STRATEGY IN IMPROVING THE COMPETITIVENESS OF AGRICULTURAL COMMODITIES IN GLOBAL MARKETS

Trade liberalization has affected Indonesian economy. The country success in international trade is truly determined by the regional sectoral competitiveness. The government recognized that agricultural commodities have higher degree of vulnerability to global trade pressures due to weak competitiveness. This study tried to identify the regional strategies that could be taken by the government in improving the competitiveness of agricultural commodity and determine the optimal solution that need to be considered. To determine the position of agricultural competitiveness, calculated Revealed Comparative Advantage (RCA), Revealed Comparative Trade Advantage (RCTA), and Trade Specialization Index (TSI) for some strategic commodities in agricultural Indonesia to export destinations. The results show that Indonesia experienced a decline in their competitiveness in global trade. It has been proved from the comparation over time and with other export countries. This study proposes regional strategy to improve national competitiveness based on their regional competitiveness.

THE IMPACT OF TRADE COSTS IN INDONESIAN AGRI-FOOD SECTORS: AN INTERREGIONAL CGE ANALYSIS

Indonesia is a Developing Country (DC) where more than 13 percent of her population live below the poverty line and approximately half of all households are near the national poverty line. While at the national level, Indonesia has sufficient food production to be self supporting, not all regions have the same endowment of agricultural productive capacity which can result in regional shortages. This study examines the extent to which a reduction in Indonesia‟s trade and transport margins can reduce interregional agri-food prices and thus help improve food security. As few studies explore the impact of intra-national trade barriers; this paper makes a unique contribution to this small, but important literature. Findings suggest that reducing trade margin or “soft infrastructure” margins is the more effective approach to improving economic outcomes across Indonesia‟s regions. Further, while reducing trade margins improved the poverty incidence for residence in all regions, the primary beneficiaries of this investment were those that live in urban areas. Results will be of interest to those interested in supporting the welfare of individuals in developing countries, and particularly living in island nations

Analyzing Island Province Policy on Poverty Alleviation in Maluku Province

This paper investigates the effects of island province policy based on Law No. 23 Year 2014 on Regional Autonomy particularly in article No. 27. It is stated that the island province has additional jurisdiction to manage maritime cadastral zone up to 12 miles from the coastline. To measure its influence, policies are differentiated with or without additional marine boundary areas that affect the coastal zone economic development. To estimate the cadastral zone potential, the growth of chlorophyll area is calculated as a proxy of in site economic potential for regional development