Poverty reduction models : Indonesian agricultural economic approach

Abstract

The geographic conditions of the Indonesian archipelago vary greatly, causing differences in climate, soil fertility, compatibility with plant species and productivity and its availability. Differences in cultivation techniques and staple food among regions also affect people's choices in meeting the dietary and food. Panel data from 33 provinces for 10 years (2007-2016) were analyzed by Path Analysis method. In the economics determinant, the decrease of Rice Prices, the decrease of Consumer Prices Indexed on Foodstuff, the increase of Government Expenditure will strengthen Food Security. In the non-economics determinant, the decrease of Food Availability will strengthen Food Security. Food Availability is the dominant factor to Food Security. The findings of this study are to reduce poverty need to strengthen food security. Government policies in spending budgets, rice price stability and inflation, and strengthening of domestic rice production need to be understood within the framework of Indonesia's geographical diversity.