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Journal > Jurnal Agro Ekonomi > Evaluasi Kebijaksanaan Industri Persusuan di Indonesia


Jurnal Agro Ekonomi
Vol 12, No 1 (1993): Jurnal Agro Ekonomi
Evaluasi Kebijaksanaan Industri Persusuan di Indonesia
Erwidodo, Erwidodo ( Pusat Penelitian Sosial Ekonomi Pertanian, Bogor Jl. Jend Ahmad Yani No.70 Bogor)
Article Info   ABSTRACT
Published date:
03 Oct 2016
AbstractThe Indonesian dairy sector remains subject to tight regulations, which all aimed at fostering the development of local dairy industry and prote!rting it from possible unfair overseas competition. There are four principal regulations that directly influence the development of domestic dairy industry, namely the import ratio requirement (BUSEP), import tariffs, an import licensing scheme, and investment restrictions in milk processing. The study shows that the current policy-mix has improved the growth performance of domestic dairy industry, indicated by the significant increased in dairy cattle population, dairy farmers, fresh milk production and the production of dairy end-product as well. In pjU1icular, the ~port ratio requirement (BUSEP) appears to be very effective in fostering domestic milk production and protecting dairy farmers income, since it provides guarantee that all domestic fresh milk wilf be absorbed by milk processor at reasonable prices. The analysis, however, indicates that tlie current policies have contributed potential negative impacts and costs to the economy paid by domestic dairy consumers. The domestic consumers could enjoy considerably larger benefits if less trade restrictions are imposed. Moreover, it is also found tliat the benefits of protection are mostly enjoyed by milk manufacturer. The autliors suggest that gradual movement towards a more deregulated dairy industry is a necessary condition to increase efficiency and strengtlien Indonesias competitive capability in the world market. Abolishing import licensing and gradually reducing import tariffs on dairy products are two crucial policy reforms, besides other direct efforts for increasing efficiency of the industry.
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