The Evaluation of Indonesia Import Policies of Garlic

Abstract

This study aims to analyze the factors that affect the supply, demand and price of garlic in Indonesia. In addition, also to seek alternative policies related to the import and production of garlic in Indonesia. Nerlove partial adjustment of supply and partial adjustment demand model are used in the estimation of supply and demand. The results showed that all the equations in the model are significant and qualified to statistical tests. In the short term, the entire exogenous variables are inelastic on its endogenous variables. But in the long term only garlic harvested area at one and two previous years, garlic productivity at one previous year, demand at one previous year and the import tariff that are elastic on its endogenous variables. Recommended alternative policies are the expansion of garlic farming land and continue to subsidize urea in addition provide protection against domestic garlic farmers through renegotiate the garlic import tariffs for long-term and maintain the stability of exchange rate in short term in order to create the conducive conditions of garlic market.