ABSTRACT
Rice in Indonesia is a strategic commodity that deeply influences the economy, social issues, employment, rural development and politics. The rice sector, including production, processing, trade and supporting sectors such as transportation, is a major source of employment. However, the majority of rice producers are subsistence and small-scale farmers. A 2003 survey by Indonesia's Central Statistics Agency (BPS, 2003) estimated the number of farm households at 25.4 million, an estimated 13.7 million of which owned less than 0.3ha of land. Farm households, especially those with a large marketed surplus, are vulnerable to price fluctuations, particularly when paddy prices plunge during the main harvest season. Without sufficient government attention paid to paddy farmers’ income, rice production will be disrupted and eventually affect rice supplies from domestic sources.
