Rice Demand Analysis in Indonesia's Central Java

Rice is the main commodity of Indonesian society. The Indonesian government designed an agricultural policy to be able to produce rice according to its demand.Economically, many people depend on rice for their livelihoods, producing rice, either through farming, marketing, or processing activities. Politically, this commodity holds a central position in the national food policy because of its very large role as a staple food ingredient for the Indonesian population.Central Java is the third rice producer in Indonesia, after West Java and East Java. The consumption of the people of Central Java is very dependent on rice. so that the scarcity of rice becomes a vital problem for Indonesia. This study tries to analyze the factors that influence demand for rice in Central Java. The estimation technique in this study uses the Panel Data model. This model uses 35 cross section data units and 4 time series data sets. The Panel Data model is the most appropriate model to use because this study uses a time series of trade flows of each cities and regencies which is then cross-sectioned with time series data of other cities demand. The results showed that the variable of price of rice, income per kapita, and population had a positive and significant effect on rice demand, while rice of corn did not affect public sector investment in the seven ASEAN countrie