The efficiency of public service obligation for food subsidy in Indonesia: Review of cost structure analysis

• Authors: Irwan Trinugroho , Sutomo , Asri Laksmi Riani
• Languages of publication: EN

Abstracts

EN

The paper reviews the efficiency of food subsidy in Indonesia based on cost structure analysis. Using the comparison between cost of good of government and cost of good of National Logistics Board appointed to manage and channel the subsidy. The level of efficiency has decreased in the recent years because of increase in costs of exploitation, management cost and interest expense. It is suggested that government has to determine the cut-off point as a feasibility assessment of cost of subsidy.

Keywords

EN

food subsidy; efficiency; cost structure; Indonesia

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Prague Development Center, Czech Republic
• Journal: Perspectives of Innovations, Economics and Business
• Year: 2011
• Volume: 7
• Issue: 1
• Pages: 45-47

Contributors

author

Irwan Trinugroho

• Faculty of Economics, Sebelas Maret University, Indonesia

author

Sutomo

author

Asri Laksmi Riani

• Prague Development Center, Czech Republic

References

• Government Regulation of the Republic of Indonesia, 2003. On Establishment of Perum (State-Owned Company) BULOG (State Logistics Agency), No.7/2003.
• Law of the Republic of Indonesia, 2003. On State-owned Enterprise (BUMN),No.19/2003.
• Raghbendra, J., Katsushi, S., Raghav, G., 2009. “Poverty, undernutrition and vulnerability in rural India: Public works versus food subsidy,” Working paper, No.135, Chronic Poverty Research Centre.
• RH Adams, Jr., 2007. “Self-targeted subsidies: the distributional impact of the Egyptian food subsidy system,” Working paper, World Bank
• SMERU Research Institute. 2007. Efektivitas Pelaksanaan Raskin [The Effectiveness of Raskin], Research Report.
• Spencer, M., Amos, O., 1993. Contemporary Economics 8th edition, Worth Publishers, New York.

Identifiers

DOI

http://dx.doi.org/10.15208/pieb.2011.10