Survey of Recent Developments

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Authors: Tao Kong; Arief Ramayandi

Macroeconomic performance continued its steady improvement during 2007, with quite strong growth, moderate inflation, a reasonably stable exchange rate, and a strongly performing stock market. A promising sign has been rapid investment growth, although the global economic slow-down predicted for 2008 is likely to reduce Indonesia’s exports, and therefore its growth rate. Moreover, rapid increases in food and energy prices on world markets seem likely to require some tightening of monetary policy to keep inflation in check. Read More »

Rice Policy in Indonesia: A Special Issue

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Authors: Neil McCulloch; C. Peter Timmer

Rice is Indonesia’s single most important commodity: almost all of her 220 million people consume it, and for most it is the staple food. Rice is also an important part of the rural economy: although only 38% of rural households actually grow rice, many more are connected to the rice economy through services, labour and trade. Getting rice policy right is therefore essential for food security and for income and employment growth in rural areas. Read More »

Rice Prices and Poverty in Indonesia

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Author: Neil McCulloch

One of the reasons often given for government policies that promote higher rice prices is the desire to protect farmers and to reduce poverty, particularly in rural areas. The underlying assumption is that farmers benefit from higher rice prices and that helping farmers will reduce poverty since the majority of the rural poor are connected in some way with agriculture. Read More »

Indonesian Rice Production: Policies and Realities

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Authors: Pantjar Simatupang; C. Peter Timmer

Indonesian rice production grew rapidly between 1977 and 1982, but the self-sufficiency achieved in 1984 was short-lived. Growth declined gradually from about 1982, eventually stabilising at a low rate in the late 1990s. Read More »

A Note on Rice Production, Consumption and Import Data in Indonesia

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Authors: L. Peter Rosner; Neil McCulloch

Debate about Indonesian rice policy has focused on estimates of production and consumption levels, and the level of imports they imply. However, Indonesian rice production and consumption data are controversial. Read More »

Food Price Stabilisation and Food Security: International Experience

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Author: Paul A. Dorosh

The importance of food commodities to consumers and farmers leads most countries to attempt to influence the levels and stability of food prices. The specific policies adopted and the degree of price stabilisation actually achieved vary considerably across countries, however. Read More »

Can Indonesia Trust the World Rice Market?

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Author: David Dawe

Geography suggests that Indonesia will continue as a net rice importer for the foreseeable future, because it is an island nation without dominant river deltas providing abundant water and flat land suitable for rice growing. Yet policy makers remain reluctant to use the world rice market to achieve domestic food security goals for at least two reasons. Read More »

Agricultural Protection in Indonesia

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Authors: George Fane; Peter Warr

Throughout the second half of the 20th century, Indonesia’s trade policies favoured the modern manufacturing sector relative to agriculture. Within agriculture, they favoured import-competing sectors at the expense of export-competing sectors. Read More »

Moh. Sadli (1922-2008), Economist, Minister and Public Intellectual

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Authors: Hal Hill; Thee Kian Wie

Mohammad Sadli, who passed away on 8 January, aged 85, was one of the most significant figures in modern Indonesia. Read More »

Book Reviews

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The book review section deals with studies of Indonesia’s experience with foreign investment in satellite communications and electricity generation; of how economic policies could be modified so as to help the poor more effectively; of Indonesia’s experience with the way environmental law influences the development process; of the ongoing democratisation of the Indonesian polity; of energy issues in the Southeast Asian region; and finally, of recent experience with the regulation and deregulation of labour markets in Asia. Read More »


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