Analysis of Rice Demand in Indonesia
Firmansyah (a*), F.X. Sugiyanto (a), Herniwati Retno Handayani (a), Shanty Oktavilia (b), Ryan Prayogi (a)
a) Departement of Economics, Diponegoro University, Jl Prof Sudharto SH, Tembalang, Semarang, Indonesia
*firmansyah[at]live.undip.ac.id
b) Faculty of Economics, Universitas Negeri Semarang, Kampus Sekaran, Gunungpati, Semarang, Indonesia
Abstract
Indonesia has a large population that faces food supply problems in the future, when it is estimated that Indonesias population will reach 300 million by 2045. To ensure the availability of accessible food with sufficient quality and quantity, appropriate policies are needed to overcome the problem originating from the supply and demand side. This study analyzes the side of domestic food demand, namely the demand of rice as the main food type, which is influenced by determinants such as price levels, substitute food prices, seasons, food diversification policies, and income. This study fins that the demand for rice in Indonesia is still determined by inelastic prices, season, and income.
Keywords: Demand of rice, price of rice, inelastic demand price
Topic: Economics