Factors Affecting the Volatility of Maize Consumer Price in Indonesia (Jurnal Internasional)

ABSTRACT

The reduction of price volatility of maize is important for the economic stabilization in Indonesia, as maize serves not only as food for humans but also feed for animals. The volatility of maize price imposes risk and uncertainty on the price of chicken meat and other meats in Indonesia, affecting consequently all the economic sectors of Indonesia. Thus, this study aims to measure the annual price volatility of the consumer price of maize and the factors affecting the price changes in Indonesia. Historical price volatility is measured by the standard deviation in this study, and Vector Error Correction Model (VECM) is used to examine the factors affecting maize consumer price. The result shows that despite the highest price volatility occurring in 2007, the price stabilization and self-sufficiency policy implemented in Indonesia is able to reduce the price volatility of maize at the consumer level in Indonesia. The main factor affecting maize consumer price is the previous maize consumer price in the short-run, while demand for maize is the main factor affecting the maize consumer price in the long-run. The implication of this study is to intensify the role of BULOG as a buffer to maize price and aid the price stabilization policy in enhancing self-sufficiency by stabilizing the consumer price of maize in Indonesia.

Paper dengan judul "Factors Affecting the Volatility of Maize Consumer Price in Indonesia" 

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Factors Affecting the Volatility of Maize Consumer Price in Indonesia