Overview of the Indonesian Rice Economic Model

Abstract

The increasing demand for rice from year to year is the main problem in maintaining Indonesia’s food security. This research aims to analyze factors that affected the rice economy in Indonesia toward riceself-sufficiency. The data used in the study are secondary data based on time series from 1961 - 2018. The model used in this study is a simultaneous equations model. The rice supply blocks models consist of paddy production, rice production, rice area, rice productivity, paddy fields, labor, N fertilizer, P fertilizer, K fertilizer, pesticides, rice supply, loss of rice, rice supply, rice imports, rice exports, prices of domestic rice, and world rice prices. The result shows that all the explanatory variables that make up the 11 models significantly affect the endogenous variables (level of significance of 1%). In contrast, the explanatory variable of the rice import equation can not explain the model