SWASEMBADA BERAS BERKELANJUTAN: DILEMA ANTARA STABILISASI HARGA DAN DISTRIBUSI PENDAPATAN

Abstract

Like other Asian countries, Indonesia tries to achieve rice self-sufficiency. To improve farmers’ competitiveness through agricultural investment and infrastructure, the government intervenes the rice market through subsidies, tariff import, and other support mechanisms for domestic producers. These interventions aims to improve farmers’ welfare and to maintain retail price. Rice is a staple food and it also has social and economic roles. Furthermore, rice is a political good. Rice self-sufficiency makes the country look improved and developed. The government takes measures to achieve rice self-sufficiency. The study aims to review rice policy implementation along with the self-sufficiency achievement by elaborating policy intervention and its implication in the market. Results of the study showed that involvement of state-owned companies in rice market could minimize market failure, but it encouraged an oligopolistic market structure and biased rice policy toward certain interest group. Shifting orientation of rice policy from price stabilization to income distribution might encourage a better rice market toward sustainable rice self-sufficiency.