Elasticities of Output Supply and Input Demand of Indonesian Foodcrops and Their Policy Implications: Multi-input Multi-output Framework*)

It is a commonly practiced that agricultural economists frame their analyses within the single commodity (multi-input single-output) framework. The problem with this framework is that this seems to be inappropriate because most agricultural production systems are characterized by multi-product farms. Motivated by this problem, this paper is aimed at providing a brief explanation on the multi-input multi-output (MI-MO) framework and applying the framework on the Indonesian food crops subsector. Based on this framework, an econometric model is specified and then estimated using the restricted seemingly unrelated regression method. Estimated cross-price elasticities obtained from the model suggest the significance of cross-effects of input or output prices on input demand or output supply, justifying the MI-MO nature of the crops. The most notable policy implication from this study is that a price policy on either outputs or inputs may not be effective. If, however, such a policy were politically desirable, it should be applied on inputs rather than on outputs because the magnitudes of the elasticities are in absolute term higher in input demands than in output supplies

Agricultural Development in Indonesia: Current Problems, Issues, and Policies

After around a decade since the Asian Financial Crisis, the Indonesian economy has still experienced a relatively slow growth. The growth has tended to increase, but is considerably lower than that of the pre-crisis era. With a relatively low level and the quality of growth, the high rates of unemployment and poverty have been difficult to reduce. Despite its potential role of reducing the rates of poverty and unemployment, agricultural growth and rural development have yet tended to be stagnant. Development efforts, on both agriculture and non-agriculture, have still been concentrated in Java whereby land availability is very limited. The problems of poverty and unemployment seem to have intensified less-sustainable agricultural practices, giving rises—at least partially—to more land degradation and threats to water sustainability. To overcome the problems, the country needs sound/comprehensive agricultural and rural development policy. Effectiveness of such policy in overcoming the problems would depend much on the integration of serious efforts to enhance agricultural productivity as well as to improve rural infrastructure and social-economic institutions

Dampak Kebijakan Harga Pangan Dan Kebijakan Moneter Terhadap Stabilitas Ekonomi Makro

EnglishThe relatively high share of food expenses in household expenditure indicates that contribution of food prices to the inflation rate is still quite high. Inflation and its fluctuations are important variables affecting macroeconomic stability. Therefore, stabilizing food prices, which could lead to a more stable inflation, might potentially result in a more stable macroeconomy. Food price policy might play important role in stabilizing food prices; but could also disturb the stability if implemented improperly. This paper aims at analyzing effects of food price as well as monetary policies on macroeconomic indicators. For this analysis, quarterly data of the period 1980.1 to 2004.4 were utilized. The study used a Vector Error Correction Model (VECM), from which Impulse Response Function (IRF) analyzes were carried out. The results suggest that: (1) food price policy could not cause instability of macroeconomy, and (2) food price policy could not affect the unemployment rate, while monetary policy could do.IndonesianMasih besarnya pangsa pengeluaran pangan pada sebagian besar kelompok masyarakat berarti bobot inflasi kelompok pangan terhadap inflasi masih cukup besar. Inflasi dan fluktuasinya dapat mempengaruhi stabilitas ekonomi makro. Jadi stabilitas harga pangan dan harga-harga di tingkat makro secara potensial dapat dilakukan dengan menerapkan kebijakan harga pangan. Namun, kebijakan harga pangan yang tidak tepat dapat juga menyebabkan ketidakstabilan ekonomi makro. Tulisan ini bertujuan untuk menganalisis dampak kebijakan harga pangan dan kebijakan moneter terhadap keseimbangan dan stabilitas indikator-indikator ekonomi makro. Data yang digunakan merupakan data sekunder deret waktu triwulanan untuk periode 1980.1 - 2004.4. Analisis data menggunakan model VECM (Vector Error Correction Model) dan teknik IRF (Impulse Response Function). Hasil analisis menunjukkan bahwa kebijakan harga pangan tidak menyebabkan instabilitas ekonomi makro, sedangkan kebijakan moneter menyebabkan peningkatan angka pengangguran

Faktor-faktor yang Mempengaruhi Kinerja Pasar Tenaga Kerja dan Implikasi Kebijakannya terhadap Sektor Pertanian di Kabupaten Bogor

There has been a general concern that after the implementation of the regionalautonomy policy, the labor market performance tenfing to decline. This paper aims atanalysing various factors influencing the labour market, by making use of aneconometric model of simultaneous equation system employing a set of pooled or paneldata (combination of yearly time series and 30 subdistricts cross section in BogorRegency). The results showed that estimated parameters accord well with the theory.The estimated model is fairly good to explain the variation of labor market of BogorRegency, prior to as well as during the ongoing regional autonomy period. Among theresults, it is found that, in agricultural and service sectors, employment absorption foreducated and uneducated labours is higher during the autonomy than before theautonomy. The opposite happens in the industrial sector. In all sectors, investmentplays an important role in determining employment absorption. Together with labourproductivity, employment absorption positively affects gross domestic regionalproduct, which in turns influences a number of labour market variables

Faktor-Faktor Yang Memengaruhi Efisiensi Biaya Perbankan Di Kawasan ASEAN-5

. This study examines determinants of cost efficiency of banking operation in ASEAN-5 region which includes Indonesia, Singapura, Malaysia, the Philippines, and Thailand. By using stochastic frontier analysis (SFA) to 23 commercial banks in the region in the period of 2005-2012, empirical results reveal certain significant relationship of cost efficiency with individual bank characteristic (return on equity, ROE). Based on the time-varying decay method, we conclude that there is an increase in cost efficiency during the period of study. This study also shows that in general, Indonesian banking industry was not operating efficiently

Analisis Integrasi Bursa Saham ASEAN 5

This study aimed to analyze the integration of the stock markets of ASEAN 5 (Indonesia, Malaysia, Singapore, Thailand, and the Philippines) associated with the event of dropped world oil prices in 2014. This study using Vector Error Correction Model (VECM) to analyze market integration 5 stocks with variable stock market. In this study uses a dummy variable of oil price with the value of 0 for the period 2009 to 2013 where world oil prices are still stable and the value of 1 for the period 2014 to 2015 where a decline in world oil prices. Results from this study shows that there is a relationship between the stock market cointegration ASEAN 5 during the study period that's mean that there is integration among ASEAN 5 stock markets. Indonesia's stock market is influenced by Thailand and Singapore in the long term. Dummy variables significantly influence the JCI during the short term

Implementasi Penyusunan Rencana Kerja dan Anggaran Belanja Kementerian Pertanian Sektor Pertanian Tahun 2005-2012

Penelitian ini bertujuan 1) menganalisis kesesuaian dokumen Rencana Kerja dan Anggaran Kementerian Negara/Lembaga (RKAK/L) yang disusun oleh Kementerian Pertanian dengan konsep penganggaran terpadu, Penganggaran Berbasis Kinerja (PBK) dan Kerangka Pengeluaran Jangka Menengah (KPJM) serta 2) menganalisis pengaruh alokasi anggaran untuk program penelitian dan penyuluhan pertanian; program infrastruktur pertanian; program peningkatan produksi dan produktivitas pertanian; serta subsidi benih dan pupuk terhadap pertumbuhan PDB. Metode analisis yang digunakan adalah analisis gap dan analisis regresi berganda. Hasil analisis gap menunjukkan bahwa masih ada beberapa kendala dalam penerapan konsep penganggaran terpadu, PBK dan KPJM yang mengakibatkan kesenjangan parsial dengan ketentuan yang berlaku, sedangkan hasil analisis regresi berganda menunjukkan bahwa alokasi anggaran Kementerian Pertanian untuk program penelitian pertanian, pengembangan dan penyuluhan serta program peningkatan produksi dan produktivitas pertanian berpengaruh negatif secara signifikan terhadap pertumbuhan PDB di sektor pertanian. Jadi pemerintah perlu memperhatikan alokasi anggaran pemerintah yang terkait erat dengan pelaksanaan program yang ada di Kementerian Pertanian