Review of Consumer Demand Theory and Food Demand Studies on Indonesia, A
Tesfaye Teklu, Stanley R. Johnson
April 1986 [86-SR 7]
Teklu, T. and S.R. Johnson. 1986. "Review of Consumer Demand Theory and Food Demand Studies on Indonesia, A." Staff report 86-SR 7. Center for Agricultural and Rural Development, Iowa State University.
Food-pricing policy, for rice in particular, is central to the Indonesian development strategy for agriculture. The rice-pricing policy has the dual roles of providing incentive to producers to regulate production and moderating consumer demand. This policy and the effective administration of the associated pricing scheme have important implications for Indonesia, especially since the policy has been extended in recent years to other staple and secondary food crops (PALAWIJA).