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Identifying factors influencing rice production and consumption in Indonesia

Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan Vol 19, No 2 (2018): JEP 2018
Publisher : Muhammadiyah University Press

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Abstract

This study analyzes factors affecting rice production and consumption in Indonesia from 1990-2014, the data source is from Central Bureau of Statistics (BPS). The method used is model of multiple linear regression equation with ordinary least square estimator (OLS). Our findings indicate that rice production can be affected by human capital, labor, wages, wetland, urban population, and rice prices; on the other side, technology has no effect on rice production. Other findings on the rice consumption model were influenced by human capital, per capita income, population, and consumption the previous year, and meanwhile, rice prices has no effect to rice consumption in Indonesia. It’s an important note for the government in making the right program policies such as the development of better irrigation systems, empowering the farmers by providing regular training, subsidizing material inputs to farmers, expanding farmland for farmers. Meanwhile, the government needs to create policy such as food diversification, price stabilization security, the increase of rice stock, and other agricultural policies.

Identifying the determining factors of recreation demand in Kongar Lake of South Sumatera: An individual travel cost approach

Forest and Society VOLUME 3 ISSUE 1, APRIL 2019
Publisher : Forestry Faculty, Hasanuddin University

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Abstract

Assessing the economic value of natural resources is always challenging and depends on various perspectives. Specifically, this study seeks to identify the determining factors of recreation demand regarding the Kongar Lake of South Sumatera. The data was obtained from a survey of 150 individuals who visited the lake. The approach used descriptive statistics and an individual travel cost method (ITCM) to conduct the investigation of distributional effects across variables on the number of visitors by using a linear multiple regression approach with a natural logarithm model. The findings suggest that (i) joint recreation demand is influenced by travel costs, income, distance, education, age, and work hours per day; (ii) in part the results of this study show that determining factors of recreation demand are based on travel cost, distance, and education; (iii) the consumer surplus was IDR.16,912 per visit and the annual recreational value included 1,720 people who visited the lake annually over an area of 5,298,288 per ha. The results of this study reveal that Kongar Lake has a considerable recreational value that, from this point of view, can help policymakers to make the case for preservation planning and sustainable utilization of natural resources.