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Volume 7
Issue 1
Online publication date 2011-01-16
Title The efficiency of public service obligation for food subsidy in Indonesia: Review of cost structure analysis
Author Irwan Trinugroho, Sutomo, Asri Laksmi Riani
Abstract The paper reviews the efficiency of food subsidy in Indonesia based on cost structure analysis. Using the comparison between cost of good of government and cost of good of National Logistics Board appointed to manage and channel the subsidy. The level of efficiency has decreased in the recent years because of increase in costs of exploitation, management cost and interest expense. It is suggested that government has to determine the cut-off point as a feasibility assessment of cost of subsidy.
Government Regulation of the Republic of Indonesia, 2003.  On  Establishment of  Perum (State-Owned Company) BULOG (State Logistics Agency), No.7/2003

Law of the Republic of Indonesia, 2003. On State-owned Enterprise (BUMN),No.19/2003

Raghbendra, J., Katsushi, S., Raghav, G., 2009. “Poverty, undernutrition and vulnerability in rural India: Public works versus food subsidy,” Working paper, No.135, Chronic Poverty Research Centre

RH Adams, Jr., 2007. “Self-targeted subsidies: the distributional impact of the Egyptian food subsidy system,” Working paper, World Bank
SMERU Research Institute. 2007. Efektivitas Pelaksanaan Raskin [The Effectiveness of Raskin], Research Report

Spencer, M., Amos, O., 1993. Contemporary Economics 8th edition, Worth Publishers, New York 
Keywords Food subsidy, efficiency, cost structure, Indonesia.
Pages 45-47
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