Food and nutrient demand in Indonesia

This study estimated and analyzed the impact of economic (price and expenditure) and demographic variables on food and nutrient demand in Indonesia using the data set collected from the national social and economic survey of household in Indonesian (SUSENAS) in 2011. A two- stage budgeting was applied using QUAIDS model.The results of food demand in this study show that demand for high-value foods such as fish, meat, eggs and milks, vegetables, fruits, and oil and fats are very sensitive to price changes in both urban and rural households. Cereals as low-value food are less sensitive to price changes. Rural households are more sensitive to price change than urban households. The price elasticities of demand become less elastic in moving from the low to high income group in both urban and rural households. The expenditure elasticities are positive and large enough for the all 10 food groups in this study except the cereal category. The expenditure elasticities for rural households are more elastic than urban households. The expenditure elasticities become less elastic in moving from the low to high income group in both urban and rural households. This study also finds that most of demographic variables such region, quarter, household size, age of household head, education of household head and gender are statistically significant.The results of nutrient demand in this study show that all expenditure nutrient elasticities are positive. Urban households are more elastic than rural households. The impact of income on nutrient intake is mostly for lower to middle income groups in both urban and rural households. The highest impact as a result of an increase in income on nutrient availability is fats, followed by protein, calories and carbohydrate in both urban and rural households. All nutrients expenditure elasticities increase in moving from high income families to low income families in both urban and rural households. Most price nutrient elasticities are negative. Price nutrient elasticities indicate that rural households are more elastic than urban households across income groups. Price mostly affects nutrient availability for lower income households in both urban and rural households