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International Trade Barrier Index 2019: The Health & Price Effect's of Indonesia's Trade Restriction on Rice

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Galuh Octania

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Muhammad Diheim Biru

Indonesia is restrictive when it comes to trade policies and these restrictions affect access to rice, which is a problem as it is the staple food of the country. The existing barriers have contributed to raising the price of rice significantly, which also affects people’s calorie intake due to their inability to fulfill nutritional needs of food for their families, especially the poor. The most prominent cause behind the high rice price is due to the high prioritization of domestic food producers’ welfare and capacity, as mandated in various regulations following the Food Law No. 18/2012. In order to establish trade grounds, the regulating concept that prioritizes domestic food development should be adjusted to provide more affordable food.

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