IDEAS home Printed from https://ideas.repec.org/a/taf/bindes/v38y2002i1p93-117.html
   My bibliography  Save this article

Deregulation Of Indonesia'S Interregional Agricultural Trade

Author

Listed:
  • Roger Montgomery
  • Sudarno Sumarto
  • Sulton Mawardi
  • Syaikhu Usman
  • Nina Toyamah
  • Vita Febriany
  • John Strain

Abstract

In January 1998 a significant policy reform deregulated agriculture in Indonesia. It sought to eliminate distorting local monopolies, monopsonies, trade restrictions, interisland maximum shipment quotas and other barriers that effectively lowered farmgate prices. Many of these had been constructed to benefit the Soeharto family and their business cronies. The reform also sought to lower local taxes and levies targeted at agriculture. This paper demonstrates that deregulation eliminated many of the distorting taxes and levies, and dismantled many (but not all) local monopolies, monopsonies and quotas. Farmers typically now receive a higher percentage of the destination market price. Many also receive significantly higher real prices for their products, although this differs dramatically across commodities. Local governments complained about local revenues lost through the reforms. Detailed budget analyses reveal that deregulation did not substantially harm local government budgets; instead, other factors caused a decline in the local-source revenue contribution to local budgets.

Suggested Citation

  • Roger Montgomery & Sudarno Sumarto & Sulton Mawardi & Syaikhu Usman & Nina Toyamah & Vita Febriany & John Strain, 2002. "Deregulation Of Indonesia'S Interregional Agricultural Trade," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(1), pages 93-117.
    • Handle: RePEc:taf:bindes:v:38:y:2002:i:1:p:93-117
    DOI: 10.1080/000749102753620301
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000749102753620301
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000749102753620301?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hadi Soesastro & M. Chatib Basri, 1998. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 3-54.
    2. Reza Siregar, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 277-303.
    3. Blane Lewis, 2001. "The New Indonesian Equalisation Transfer," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 325-343.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Widjajanti Isdijoso & Nina Toyamah & Adri Poesoro & Bambang Sulaksono & Syaikhu Usman & Vita Febriany, "undated". "Improving the Business Climate in NTT: The Case of Agriculture Trade in West Timor," Working Papers 652, Publications Department.
    2. Kelly Bird & Hal Hill & Sandy Cuthbertson, 2008. "Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia," The World Economy, Wiley Blackwell, vol. 31(7), pages 947-968, July.
    3. Sudarno Sumarto & Asep Suryahadi & Alex Arifianto, "undated". "Governance and Poverty Reduction: Evidence from Newly Decentralized Indonesia," Working Papers 381, Publications Department.
    4. Aswicahyono, Haryo & Bird, Kelly & Hill, Hal, 2009. "Making Economic Policy in Weak, Democratic, Post-crisis States: An Indonesian Case Study," World Development, Elsevier, vol. 37(2), pages 354-370, February.
    5. Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September.
    6. Reza Siregar, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 277-303.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Deuster, 2002. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(1), pages 5-37.
    2. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Publications - Reports 14632, The World Bank Group.
    3. Ross McLeod, 2003. "Towards improved monetary policy in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 303-324.
    4. Sarah Xue Dong, 2017. "The differential impact of economic crisis on men and women, and its connection to intra-household bargaining," WIDER Working Paper Series wp-2017-134, World Institute for Development Economic Research (UNU-WIDER).
    5. Yoko Oishi & Dainn Wie, 2023. "Importing Inequality: Trade Liberalisation, Technology and Women’s Employment," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(3), pages 391-419, September.
    6. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm‐level Evidence from Indonesian Manufacturing," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
    7. Gertler, Paul J. & Gonzalez-Navarro, Marco & Gračner, Tadeja & Rothenberg, Alexander D., 2024. "Road maintenance and local economic development: Evidence from Indonesia’s highways," Journal of Urban Economics, Elsevier, vol. 143(C).
    8. Siregar, Reza & Rajaguru, Gulasekaran, 2005. "Sources of variations between the inflation rates of Korea, Thailand and Indonesia during the post-1997 crisis," Journal of Policy Modeling, Elsevier, vol. 27(7), pages 867-884, October.
    9. M A B Siddique & Heru Wibowo & Yanrui Wu, 2014. "Fiscal Decentralisation and Inequality in Indonesia: 1999-2008," Economics Discussion / Working Papers 14-22, The University of Western Australia, Department of Economics.
    10. Reza Siregar, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 277-303.
    11. Gertler, Paul J & Gonzalez-Navarro, Marco & Gracner, Tadeja & Rothenberg, Alexander, 2023. "Road Maintenance and Local Economic Development," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt38m633q0, Department of Agricultural & Resource Economics, UC Berkeley.
    12. Takahiro Akita & Sachiko Miyata, 2018. "Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 829-852, August.
    13. Hadi Soesastro & Haryo Aswicahyono & Dionisius A. Narjoko, 2006. "Economic Reforms in Indonesia after the 1997/98 Economic Crisis," EABER Working Papers 21831, East Asian Bureau of Economic Research.
    14. Siregar, Reza & Wiranto, Willeam, 2009. "In the Midst of Global Financial Slowdown: the Indonesian Experience," MPRA Paper 19657, University Library of Munich, Germany.
    15. Coxhead, Ian, 2004. "International Trade and the Natural Resource 'Curse' in Southeast Asia: Does China's Growth Threaten Regional Development," Staff Paper Series 480, University of Wisconsin, Agricultural and Applied Economics.
    16. repec:ilo:ilowps:334072 is not listed on IDEAS
    17. Bambang Brodjonegoro & Jorge Martinez-Vazquez, 2004. "An Analysis of Indonesia's Transfer System: Recent Performance and Future Prospects," Chapters, in: James Alm & Jorge Martinez-Vazquez & Sri Mulyani Indrawati (ed.), Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia, chapter 8, Edward Elgar Publishing.
    18. Takahiro Akita & Awaludin Aji Riadi & Ali Rizal, 2021. "Fiscal disparities in Indonesia in the decentralization era: Does general allocation fund equalize fiscal revenues?," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1842-1865, December.
    19. Ross H McLeod, 2003. "After Soeharto: Prospects for reform and recovery in Indonesia," Departmental Working Papers 2003-10, The Australian National University, Arndt-Corden Department of Economics.
    20. Blane D. Lewis, 2005. "Indonesian Local Government Spending, Taxing and Saving: An Explanation of Pre‐ and Post‐decentralization Fiscal Outcomes," Asian Economic Journal, East Asian Economic Association, vol. 19(3), pages 291-317, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:bindes:v:38:y:2002:i:1:p:93-117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CBIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.