Self-sufficiency in rice production was set as a policy goal in the
First Five Year Plan of Indonesia, 1969-1973 (REPELITA I). Incentives to
increase rice production are not provided by increasing the price of rice,
since the Indonesian Government believes that this would have a
destabilising effect on the economy as a whole. Instead, farmers are
encouraged to increase rice production through the subsidisation of input
prices, particularly manufactured fertiliser prices, under the...[Show more]
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