The Effectiveness of Rice Price Stabilization Policy In Indonesia

Instability of rice prices in Indonesia is shown from the increasing price disparity between Indonesia's rice price and international rice price. Stabilization of food prices is one of the priority policies of the government. The instruments of rice price stabilization should be integrated and measurable. The purpose of this research is to analyze the effectiveness of rice price stabilization policies that have been implemented by the Indonesian government in the period 2010 to 2015. The data used in this study were monthly time series data from January 2010 to December 2015. Data were collected from Indonesia’s Agency for Logistics Affairs and Indonesia’s Ministry of Trade. This research used multiple regression analysis model. The results show that the three policy instruments of rice price stabilization ie rice HPP, market operation, and rice import are right to control rice price. However, market operation and import policy instruments have not been effective in stabilizing rice prices. To be effective, it is necessary to market operation and rice import policy right in timeliness and quantity in the implementation of the policy.