Economic Contribution of Rice Production and Food Security in Indonesia

Abstract

This paper analyzes how Indonesia has achieved the food security and allocated targets of economic development. Whereas rice is the staple food of Indonesia, the share of Indonesia is about 10% in the world rice production but known as until importer country because rice is being used by 93% of its population. To cope with this situation, Indonesia pays heavy amount on importing of rice that imbalances its economy. To get rid of related problems, Indonesia has adopted the economic and sustainable policy of rice production to make sure the self sufficiency in food grains. The study estimates rice import’s responses in food security conditions along with addressing its economic impact in Indonesia during the period of 1960 to 2010. This research has pursued a descriptive choice of method and in this regard the relevant data has been collected from the secondary source and analysed by mathematical process. The results indicate that Indonesia has adopted the green revolution policy in 1970 that improved production of Rice by allowing the subsidy on fertilizers, seeds, irrigational assistance, and machinery essential that has played a pivotal role in Indonesian economy. The study also concentrated to draw some do able example that could be used as policy in the context of agriculture sector.