Income determination of rice traders and how they perceived the rice import policy in Indonesia: An economic and ecological impacts

Abstract

Rice is the principal source of carbohydrates for most people in Indonesia. Over time, the government implemented some measures, including importing rice, to meet the population's daily need for rice. Traders have a vital role in the marketing chain before the community finally purchases and consumes local and imported rice. The welfare of rice traders must be considered, which becomes the basis for researching the factors determining the traders' incomes. Besides, this study aimed to observe the traders' perception of the rice import policy. The sampling method was conveniently executed, utilizing a sample of forty rice traders from four regions on Indonesia's Java Island. Interviews were carried out using a questionnaire to collect the data. The results show that the respondent's age and rice stock influenced the trader's income. Most rice traders agreed that the import policy increased rice availability, decreased rice prices, and reduced competition among traders. Although most traders confirmed that imports were still needed, the government must control and oversee the execution to maximize economic benefits and reduce negative environmental impacts.