International Journal of Social Science & Economic Research
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Title:
MEDIUM RICE MARKET INTEGRATION IN INDONESIA: REGIONAL DISAGGREGATION ANALYSIS

Authors:
Jan Piter Sinaga, Muhammad Firdaus, Idha Widi Arsanti, Akhmad Fauzi

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Jan Piter Sinaga, Muhammad Firdaus, Idha Widi Arsanti, Akhmad Fauzi
Food Distribution Staff, Food Distribution and Reserves Center, Food Security Agency, Postgraduate Faculty of Economics and Management, IPB University, Indonesia

MLA 8
Sinaga, Jan Piter, et al. "MEDIUM RICE MARKET INTEGRATION IN INDONESIA: REGIONAL DISAGGREGATION ANALYSIS." Int. j. of Social Science and Economic Research, vol. 5, no. 9, Sept. 2020, pp. 2480-2502, doi:10.46609/IJSSER.2020.v05i09.005. Accessed Sept. 2020.
APA 6
Sinaga, J., Firdaus, M., Arsanti, I., & Fauzi, A. (2020, September). MEDIUM RICE MARKET INTEGRATION IN INDONESIA: REGIONAL DISAGGREGATION ANALYSIS. Int. j. of Social Science and Economic Research, 5(9), 2480-2502. doi:10.46609/IJSSER.2020.v05i09.005
Chicago
Sinaga, Jan Piter, Muhammad Firdaus, Idha Widi Arsanti, and Akhmad Fauzi. "MEDIUM RICE MARKET INTEGRATION IN INDONESIA: REGIONAL DISAGGREGATION ANALYSIS." Int. j. of Social Science and Economic Research 5, no. 9 (September 2020), 2480-2502. Accessed September, 2020. doi:10.46609/IJSSER.2020.v05i09.005.

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Abstract:
As a staple food for almost all Indonesian people, rice is a strategic food commodity in Indonesia. This article aims to discuss market integration, the reference market and the formation of medium rice prices using daily data for the period of June 2017 - March 2019. The integration of the medium rice market was analyzed by Johansen's cointegration approach and using the Vector Error Correction Model Panel (VECM Panel). The results showed that there is a longterm relationship among prices at the farmer, wholesaler and consumer levels. However, the level of vertical market integration is not strong enough. Vertical integration of medium rice only occurs in the Java Island region. Spatially, the reference market that is distribution center of medium rice in Indonesia is the Cipinang Rice Main Market (CRMM), Bandung, Makassar, Palembang and Surabaya. Therefore, the government must ensure adequate supply of medium rice to the markets in these cities so that the price of medium rice does not fluctuate significantly.

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