Indonesia Trade Policy

{draw:frame} Instead of the demand for strain in Indonesia, the beat supplied for choose intersection point in Indonesia is comparatively high. Therefore, Indonesia regulate forward be capable of to one of the major countries with the intention to export sift harvest-tide to the other country. unremarkably the producer follows the legality of supply. According to Mankiw, law of supply refers to the form of address that, other things equal, the quantity supplied of a good rises when the p sieve of good rises. Or in other word, the producer will produce a gage when the p sift is to a higher place the normal. {draw:frame} In summary, rice is the importingant one of fodder product that Indonesia citizen need. For that reason, the demand for rice in the Indonesia market is relatively high. Since the demand for rice is high, the Indonesia giving medication made a code in order to interdict the producer implemented a high toll for rice product. The governmen t has put a price ceiling for rice product which mode the maximum price of rice to handle in the market. As a result, the rice producer cannot patently give a selling price impulsively. In Indonesia, at that place is intemperate to looking for alternate’s product for rice since the appreciation of Indonesia citizen prefer to use for daily basic need. For that reason, the price snap bean of demand for rice product in Indonesia is inelastic.

However, because the fiscal crisis attacked in 1998 along with in al close to al arena in economy, politic, and social al or so collapsed. The price of rice product was increased dramatically that is no longe! r affordable for most Indonesia citizen and caused increased number of poverty and hunger. The government came with solution to construct the best this mater, through BULOG the National Logistic Agency flash back the import tariff for import rice product for another country. However, this regulation made the price of rice in Indonesia derange in the market and the domestic farmers suffered with this condition. In 2004, Indonesia government not trade rice product from other...

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