The Impact of Rice Policy towards Poverty Reduction in Indonesia

Dudi Septiadi

2017

Abstract

Poverty is an important issue in the Indonesian economy which should be addressed immediately. Rice is a major source of calories most of the Indonesian people that affect the welfare of million people. The objective of this research was to analyze the impact of rice policy on poverty in Indonesia. Specifications of research model using simultaneous equations and allegedly with the method two Stages Least Squares (2SLS). The results of research shows that poverty in Indonesia is influenced by economic growth, government spending on infrastructure, percapita income, fuel prices, inflation, the amount of imported rice, the rice price retail premises and poverty previous year. The decline in the retail price of rice is able to reduce poverty. Real retail rice price increase 1 percent would increase poverty by 0.037 percent in the short term and amounted to 0.124 percent in the long term. 1 percent increase in economic growth will reduce poverty by 0.090 percent in the short term and amounted to 0.306 percent in the long term. In an effort to reduce the number of poor people, government purchasing price policy should be followed by other rice policy.

Paper Citation

in Harvard Style

Septiadi D. (2017). The Impact of Rice Policy towards Poverty Reduction in Indonesia.In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE, ISBN 978-989-758-308-7, pages 203-208. DOI: 10.5220/0006883302030208

in Bibtex Style

@conference{iceee17,
author={Dudi Septiadi},
title={The Impact of Rice Policy towards Poverty Reduction in Indonesia},
booktitle={Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE,},
year={2017},
pages={203-208},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006883302030208},
isbn={978-989-758-308-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE,
TI - The Impact of Rice Policy towards Poverty Reduction in Indonesia
SN - 978-989-758-308-7
AU - Septiadi D.
PY - 2017
SP - 203
EP - 208
DO - 10.5220/0006883302030208