THE INTEGRATION BETWEEN INDONESIA AND WORLD RICE MARKET

Abstract

The availability of rice in Indonesia is a very strategic role in this country. The availability of rice Indonesia has a relationship with the world rice market because of the role of Indonesia as one of the large rice importer in the world. Imports by Indonesia increasingly become sutu dependence for Indonesia. The availability of rice was more associated with the state of the world rice market. This study aims to analyze: (1) the factors that affect the supply, demand and price of rice in Indonesia, (2) association of the world rice price to the availability of rice in Indonesia, (34) conditions availability of Indonesia's rice imports if there is a change of export rice in major exporting countries and importers. This study uses secondary data years 1980-2008 and analyzed through a system of simultaneous equations econometric model with the 2SLS method, then proceed with the validation of simulation models for analysis. The results showed that: (1) Factors that affect the supply of rice Indonesia from 1998 until 2008 Indonesia was the productivity of rice and fertilizer prices (2) Factors that influence the demand for rice Indonesia from 1998 until 2008 is the price of domestic rice and a population of Indonesia, (3) the world price of rice has been linked to the availability of rice in Indonesia, (4) The change in price and quantity of exports in Thailand, as well as changes in price and quantity of imports in Cote D'Ivoire keep the conditions of supply of surplus rice in Indonesia .