Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications

Jacinto F. Fabiosa
July 2005  [05-WP 400]

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Suggested citation:

Fabiosa, J.F. 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications." Working paper 05-WP 400. Center for Agricultural and Rural Development, Iowa State University.


New elasticities were estimated from Indonesia's 1996, 1999, and 2002 National Socio-Economic Survey, or SUSENAS, data using a double-hurdle demand specification. The estimates suggest that major changes in Indonesian household diets are expected in the coming years, as income growth is sustained and as urbanization proceeds at a fast pace. The consumption "trading-up" pattern for animal-protein source products observed in many countries may also occur in Indonesia. In this particular case, households will shift from fish to dairy and meat products. The trade impacts of this emerging consumption pattern will be determined by the cost of adjustment in Indonesia's domestic productive capacity and the influence of the country's predominantly Islamic tradition.

Keywords: demand, household consumption, trade.