Supply and Demand of Rice in Indonesia: A Critical Review

Sri Herliana; Sudrajati Ratnaningtyas; Qorri Aina; Umi Zuraida; Acip Sutardi; Syifaya Qorina

doi:10.32535/jcda.v8i1.3665

Supply and Demand of Rice in Indonesia: A Critical Review

Sri Herliana, Sudrajati Ratnaningtyas, Qorri Aina, Umi Zuraida, Acip Sutardi, Syifaya Qorina

Abstract

The demand and supply of rice as a staple food is a crucial factor in the food supply chain and food security in Indonesia. Indonesia still faces a deficit in domestic rice supply, which leads the government to adopt import policies to fill this shortage. Therefore, there is a need to understand the dynamics of rice supply and demand, as the interaction between the two is complex, to address food security concerns. This research aims to critically assess the dynamics of rice supply and demand in Indonesia, highlighting the key challenges and opportunities to improve food security. Using a critical review methodology, the study analyzes and critiques recent linear studies, literature, government policies, and statistical data to highlight their strengths, weaknesses, and challenges, providing a comprehensive understanding of the rice production supply and demand. The conclusion of this research is that a holistic approach is needed to achieve food security. The findings suggest that Indonesia must implement a comprehensive approach, incorporating environmental, political, and socioeconomic factors in food security. Future research should explore the role of climate resilience and global trade dynamics in shaping Indonesia’s rice sector. This comprehensive perspective can help decision-makers create a more sustainable food system

Keywords

Food Security; Food Sustainability; Rice Consumption; Rice Productivity; Supply and Demand

Full Text:

PDF

References

Ali, A., & Abdulai, A. (2010). The adoption of genetically modified cotton and poverty reduction in Pakistan. Journal of Agricultural Economics, 61(1), 175-192. https://doi.org/10.1111/j.1477-9552.2009.00227.x

Awotide, B. A., Karimov, A., Diagne, A., & Nakelse, T. (2013). The impact of seed vouchers on poverty reduction among smallholder rice farmers in Nigeria. Agricultural Economics, 44(6), 647-658. https://doi.org/10.1111/agec.12079

Azis, O. D. L. A. (2024, May 23). Akademisi: Optimalisasi Lahan Tekan Risiko Kekurangan Beras di Maluku [Academics: Land Optimization Reduces Risk of Rice Shortage in Maluku]. Antara Maluku. https://ambon.antaranews.com/berita/214218/akademisi-optimalisasi-lahan-tekan-risiko-kekurangan-beras-di-maluku

Azzahra, D. M. (2021). Faktor-faktor yang mempengaruhi impor beras di Indonesia tahun 2001-2019 [Factors affecting rice imports in Indonesia 2001-2019]. E-Journal Perdagangan Industri & Moneter, 9(3), 181–192. https://doi.org/10.22437/pim.v9i3.14642

Baba, D. (2024, November 26). Perwakilan Kemenkeu Paparkan Penyebab Defisit Beras di Maluku Utara [Ministry of Finance Representative Explains Causes of Rice Deficit in North Maluku]. RRI. https://www.rri.co.id/daerah/1148014/perwakilan-kemenkeu-paparkan-penyebab-defisit-beras-di-maluku-utara

Badi’ah, R., Wiratama, D., Yusuf, M. F., Sari, D. A., & Ulya, D. (2023). Dynamics of rice imports in Indonesia: Analysis of development, causative factors, impacts and solutions. Journal of Economics, Finance and Management Studies, 06(11), 5745-5752. https://doi.org/10.47191/jefms/v6-i11-57

Bhat, R. A., Bhat, Z. A., Rafiq, S., Nazki, I. T., Khan, F. U., Neelofar, R. Z., ... & Rather, R. A. (2021). Influence of growing media on vegetative, floral and bulb parameters of crown lily (Fritillaria Imperialis L.). Acta Scientific Agriculture, 5(4), 56-60.

Bondansari, W., Munibah, K., & Ambarwulan, W. (2023, December). The alternative policies to sustain the level of sufficient domestic rice staple food supply for the population (A case study in Banyumas Regency, Central Java, Indonesia). In IOP Conference Series: Earth and Environmental Science (Vol. 1266, No. 1, p. 012032). IOP Publishing. https://doi.org/10.1088/1755-1315/1266/1/012032

Burchi, F., & De Muro, P. (2016). From food availability to nutritional capabilities: Advancing food security analysis. Food Policy, 60, 10-19. https://doi.org/10.1016/j.foodpol.2015.03.008

Caballero-Anthony, M., Teng, P., Lassa, J., Nair, T., & Shrestha, M. (2016). Public stockpiling of rice in Asia Pacific. In NTS Report No. 3.

Central Agency of Statistics Indonesia (BPS Indonesia). (2023, October 16). Paddy Harvested Area and Production in Indonesia 2023 (Preliminary Figures). BPS-Statistics Indonesia. https://www.bps.go.id/en/pressrelease/2023/10/16/2037/paddy-harvested-area-and-production-in-indonesia-2023--preliminary-figures-.html

Central Agency of Statistics Indonesia (BPS Indonesia). (2024, March 20). Imports of Rice by Major Countries of Origin, 2000-2022. BPS-Statistics Indonesia. https://www.bps.go.id/en/statistics-table/1/MTA0MyMx/imports-of-rice-by-major-countries-of-origin--2000-2022.html

Dwipayana, I., Agus, K., & Kesumajaya, W. W. (2014). Pengaruh harga, cadangan devisa, dan jumlah penduduk terhadap impor beras Indonesia [The influence of prices, foreign exchange reserves, and population on Indonesia's rice imports]. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 3(4), 164-172.

Ekawati, R., Arkeman, Y., Suprihatin, S., & Sunarti, T. C. (2021). Business analysis based on traceability framework on sugar supply chain. Jurnal Teknologi Industri Pertanian, 31(2), 242-248.

Farrukh, M. U., Bashir, M. K., Hassan, S., Adil, S. A., & Kragt, M. E. (2020). Mapping the food security studies in India, Pakistan and Bangladesh: Review of research priorities and gaps. Global Food Security, 26, 100370. https://doi.org/10.1016/j.gfs.2020.100370

Food and Agriculture Organization (FAO). (2011). Global Food Losses and Food Waste–Extent, Causes and Prevention. FAO.

Food and Agriculture Organization (FAO). (2012). Law of the Republic of Indonesia Number 18 of 2012 on Food. FAO. https://www.fao.org/faolex/results/details/en/c/LEX-FAOC139381/

Galbraith, J. K. (1987). A History of Economics: The Past as the Present. Penguin Books.

Handayani, S. (2022). Optimization of organic rice production using linear programming analysis in lampung province. Asia Pacific Journal of Management and Education, 5(3), 37-47. https://doi.org/10.32535/apjme.v5i3.1643

Humphrey, T. M. (1996). Marshallian cross diagrams and their uses before Alfred Marshall: the origins of supply and demand geometry. Alfred Marshall: Critical Assessments. Second Series, 224-255.

Kishine, M., Suzuki, K., Nakamura, S., & Ohtsubo, K. I. (2008). Grain qualities and their genetic derivation of 7 new rice for Africa (NERICA) varieties. Journal of Agricultural and Food Chemistry, 56(12), 4605-4610. https://doi.org/10.1021/jf800141y

Kurniawan, H. (2014). Faktor – faktor yang mempengaruhi impor beras di Indonesia tahun 1980-2009 [Factors influencing rice imports in Indonesia 1980-2009]. Economics Development Analysis Journal, 3(3). https://doi.org/10.15294/edaj.v3i3.1036

Kusmiati, K., & Bowo, P. A. (2024). Analysis of factors influencing rice imports in Indonesia. Efficient: Indonesian Journal of Development Economics, 7(1), 44-54.https://doi.org/10.15294/6mr20w80

Malthus, T. R. (1798). An Essay on the Principle of Population, as it Affects the Future Improvement of Society, with Remarks on the Speculations of Mr. Godwin, M. Condorcet, and other Writers (1st ed.). Johnson.

Malthus, T. R. (1998). An Essay on the Principles of Population (2nd ed.). Electronic Scholarly Publishing Project.

Mankiw, N., Quah, E., & Wilson, P. (2014). Pengantar Ekonomi Mikro [Introduction to Microeconomics]. Salemba Empat.

Ministry of Agriculture Indonesia. (2019). Buletin Konsumsi Pangan (Vol. 10 No. 1). Scribd. https://www.scribd.com/document/455530205/Buletin-Konsumsi-Vol-10-No-1-2019-pdf

Miranti, A., & Syaukat, Y. (2016). Pola konsumsi pangan rumah tangga di Provinsi Jawa Barat [Household food consumption patterns in West Java Province]. Jurnal Agro Ekonomi, 34(1), 67-80. https://doi.org/10.21082/jae.v34n1.2016.67-80

Najim, M. M. M., Lee, T. S., Haque, M. A., & Esham, M. (2007). Sustainability of rice production: A Malaysian perspective. Journal of Agricultural Sciences, 3(1). http://dx.doi.org/10.4038/jas.v3i1.8138

Noer, I., & Unteawati, B. (2022). Rice marketing systems model to strengthen institutional of rice marketing in Lampung Province Indonesia. Asia Pacific Journal of Management and Education, 5(2), 100-110.https://doi.org/10.32535/apjme.v5i2. 1636

Nurpalina, N., Noer, I., & Kurniawan, H. (2022). Marketing system of grain from farmers to rice mill producers in Pringsewu District. Journal of The Community Development in Asia, 5(2), 102-109. https://doi.org/10.32535/jcda.v5i2.1501

Oladimeji, Y. U. (2017). Food production trend in Nigeria and Malthus theory of population: empirical evidence from rice production. Nigerian Journal of Agriculture, Food and Environment, 13(1), 126-132.

Prayitno, G., Ahari, M. I., & Rukmi, W. I. (2021). Structural equation model with partial least square (SEM-PLS) of place dependence with land used change. Journal of International Studies (2071-8330), 14(1). https://doi.org/10.14254/2071-8330.2021/14-1/11

Prayitno, G., Hidayat, A. R. T., Subagiyo, A., & Paramasasi, N. K. (2018, November). Factors that effect to land use change in Pandaan District. In IOP Conference Series: Earth and Environmental Science (Vol. 202, No. 1, p. 012006). IOP Publishing. https://doi.org/10.1088/1755- 1315/202/1/012006

Purwaningsih, Y., Hartono, S., Masyhuri, M., & Mulyo, J. H. (2010). Pola pengeluaran pangan rumah tangga menurut tingkat ketahanan pangan di Provinsi Jawa Tengah. Jurnal Ekonomi Pembangunan, 11(2), 236-253. https://doi.org/10.23917/jep.v11i2.327

Purwandoko, P. B., Solahudin, M., Novianti, F., Mayasti, N. K. I., Rahman, N., Susanti, N. D., ... & Andriansyah, R. C. E. (2024, May). Proposed design of blockchain technology for rice supply chain system in Indonesia. In IOP Conference Series: Earth and Environmental Science (Vol. 1338, No. 1, p. 012053). IOP Publishing. https://doi.org/10.1088/1755-1315/1338/1/012053

Rani, N. S., Pandey, M. K., Prasad, G. S. V., & Sudharshan, I. (2006). Historical significance, grain quality features and precision breeding for improvement of export quality basmati varieties in India. Indian Journal of Crop Science, 1(1and2), 29-41.

Saliem, H. P., Suryani, E., Suhaeti, R. N., & Ariani, M. (2019). The dynamics of Indonesian consumption patterns of rice and rice -based food eaten away from home. Analisis Kebijakan Pertanian, 17(2), 95-110. http://dx.doi.org/10.21082/akp.v17n2.2019.95-110

Samuelson, P. A., & Nordhaus, W. D. (2003). Ilmu Mikroekonomi [Microeconomics]. PT Media Global Edukasi.

Santos, S. (2024). Rice buffer stock maintenance post-rice tariffication law (RA11203): An application of a partial equilibrium model for buffer stock level optimization. DLSU Business & Economics Review, 33(2),163-188.

Sari, K. R. (2014). Analisis impor beras di Indonesia [Analysis of rice imports in Indonesia]. Economics Development Analysis Journal, 3(2), 320-326. https://doi.org/10.15294/edaj.v3i2.3838

Sitko, N. J., & Jayne, T. S. (2014). Structural transformation or elite land capture? The growth of “emergent” farmers in Zambia. Food Policy, 48, 194-202. https://doi.org/10.1016/j.foodpol.2014.05.006

Valentinov, V., & Thompson, S. (2019). The supply and demand of social systems: towards a systems theory of the firm. Kybernetes, 48(3), 570-585. https://doi.org/10.1108/K-04-2018-0178

Wani, N. R., Rather, R. A., Farooq, A., Padder, S. A., Baba, T. R., Sharma, S., ... & Ara, S. (2024). New insights in food security and environmental sustainability through waste food management. Environmental Science and Pollution Research, 31(12), 17835-17857. https://doi.org/10.1007/s11356-023-26462-y

Wedowati, E. R., Singgih, M. L., & Gunarta, I. K. (2014). Production system in food industry: a literature study. In 6th International Conference on Operations and Supply Chain Management, Bali.

Zaeroni, R., & Rustariyuni, S. D. (2016). Pengaruh produksi beras, konsumsi beras dan cadangan devisa terhadap impor beras di Indonesia. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 5(9), 993-1010.

DOI: https://doi.org/10.32535/jcda.v8i1.3665