WHY MUST IMPORT?
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The existence of imported rice from Thailand to Indonesia is
something that raises its own polemic in Indonesian society. Given that
Indonesia is an agricultural country that should be able to meet the food needs
independently. In this case we can study it with the theory of comparative
advantage. Since Indonesia and Thailand actually had the same potential in
rice. But Indonesia was preferred to import rice. It also can be viewed as a
specialization. Indonesia was more profitable by being able to concentrate on
other potential advantages. Given that even though Indonesia has a potential in
the rice itself, but the climate in Indonesia is not predictable and make rice
crops less than the maximum. Specialization is necessary for Indonesia to be
more productive again. Rice imports this does not mean Indonesia rice deficit,
but rather to ensure that no gaps in the domestic rice. Also consider the
amount of rice consumption in Indonesia, where per capita rice consumption of
rice per year was 139 kg per year. Then the import is considered as a
legitimate policy to secure national rice reserve stock of rice production in
the country when disturbed. No doubt, the climate issue seriously impact either
directly or indirectly. The quality of rice farmers devastated by climate
change and bad harvests in some areas also become a consideration to imports.
In this import policy, we also find the opportunity cost. That is because
Indonesia has the potential to actually meet the needs of its rice in the presence
of local agricultural products, but Indonesia would prefer to import rice. This
is due to the view that such imports will give better results. Namely
strengthen Bulog rice reserves, while Indonesia also benefited from the
strengthening of the domestic rice reserves. In addition of anticipating on
Indonesia’s nature condition itself, if there is a strengthening of reserves of
rice, then the government will also have more confidence in keeping prices
stable. So even though Indonesia is able to own rice, but there was positive
side that can be obtained when choosing to import rice. Imports can also be
viewed through the side benefits of free trade, which is domestic consumers can
obtain a stable rice prices (due to the strengthening of reserves of rice).
What next? We'll see, guys :)
EXPECT TO BE BETTER, NOT BE A HUNGRY CHICKEN IN GRANARY :)
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