This chapter reviews the complex set of relationships among rice strategies, policy instruments, economic variables, and food policy objectives as they have evolved since the early 1970s. The intent is to provide readers unfamiliar with the recent history of Indonesian rice policy with a summary of rice policy and production performance and to offer already knowledgeable readers an interpretive approach to understanding how strategies, policies, variables, and objectives have fit together. The modest goal, then, is to review the set of policy instruments available to Indonesian decision makers, whereas the more ambitious intention is to interpret these instruments' recent se in the context of food policy objectives.)

This book examines the components of Indonesia's rice policy to help policymakers, analysts, and observers sort out the pros and cons of alternative courses of action. Containing the results of the Food Research Institute's third multiyear research project on Indonesian food policy, the book combines new field-based empirical evidence on rice farming profitability and rural employment and wages with long experience in analyzing Indonesian food policy issues and the international market for rice.

Lack of consensus among researchers in Indonesia concerning real wage trends in rice production has generated disagreement over rural labour market conditions on Java. This paper identifies some empirical difficulties associated with measuring real wages, difficulties which have contributed to conflicting results in the literature. It is argued that the choice of deflator and the time period of analysis play a significant role in the calculation of real wages. In addition, the regional dimension of analysis is shown to be important, particularly during certain discrete time periods in recent history.

This book, based on fieldwork carried out by a team of American and Indonesian economists, investigates Indonesia's potential for maize production. It integrates 3 economic approaches: (1) the commodity systems approach, which traces the technical and market links from input supplier to producer, processor and consumer; (2) the macro-trade approach, which analyses the role of the commodity in generating domestic value-added and foreign exchange; and (3) the food policy approach, which analyses the efficiency of commodity systems and the distribution of their benefits in order to evaluate potential public investments and policy interventions. The conclusion reached is that Indonesia has the potential to expand its maize production by: (1) efficiency in the marketing system and (2) policies encouraging investment in storage and drying facilities.