Eurasia: Economics & Business (Mar 2022)
THE EFFECT OF PRODUCTION, INTERNATIONAL RICE PRICES, AND FOREIGN EXCHANGE RESERVES ON THE VOLUME OF INDONESIAN RICE IMPORTS IN 2008-2020
Abstract
Rice is the main commodity as one of the staple foods in Indonesia, because most of the Indonesian population consumes rice. Domestic rice production is not able to meet the food needs of all Indonesian people, so the government imports rice and for the reason of maintaining rice reserves in Indonesia. This study aims to analyze the effect of production, international rice prices and foreign exchange reserves have a simultaneous and partial effect on the volume of Indonesian rice imports. The data analysis technique used is multiple linear regression. The results of this study found that the variables of production, international rice prices, and foreign exchange reserves had no simultaneous significant effect on the volume of Indonesian rice imports. Meanwhile, foreign exchange reserves partially have a positive and significant effect on the volume of Indonesian rice imports, while international rice production and prices partially have a negative and significant effect on the Indonesian rice import volume.
