Impact of Rice Import Tariff and Quota on Food Security in Indonesia

Abstract

Food is an essential need for human beings to survive, particularly for Indonesia as one of the fifth most highly populated countries in the world. Food security should become one of the most important issues in Indonesia. This paper tries to answer these following questions: what is the existing condition of food security? How do the import tariff and quota affect the National food security? National series data from 1980 to 2013 for 4 main staple foods: rice, maize, cassava and wheat were employed. The Simultaneous Equations Model consisting of 22 structural equations and 29 identity equations were estimated using Two Stage Least Square method. The results show that: (1) during the last 4 decades the food diversification indicator tends to be concentrated; however, the food independence indicator improved; (2) a high tariff rate on rice and ban on rice import will increase consumption food diversification, food independence and