Does Covid-19 have effects on the Indonesian horticultural subsector

Agus Dwi Nugroho

Abstract: The contribution of agriculture to Indonesian gross domestic product in the second quarter of 2020 has increased compared with same period last year. However, in certain occasions, this condition is not in line with the micro situation in the agricultural sector. This topic is important to study because agriculture, especially horticulture, has considerable effects on the Indonesian economy. This study aimed to ascertain the effects of Covid-19 on consumer and producer prices, import, and farmer welfare in the horticultural subsector in Indonesia. The research used Indonesian horticultural data in March–October 2019 and 2020. Trend and descriptive analyses were used to analyze the data. During the Covid-19 pandemic, Indonesia attempted to stabilize the price of horticultural commodities by increasing imports. The import policy and social restriction caused the decline in farmers’ welfare because the prices of garlic and chili at the farm level declined. Meanwhile, social restriction policy caused difficulties in the distribution, and the shallot price increased at the consumer level.

Keywords: consumer price; Covid-19; farmer price; farmer welfare

Date published: 2021-10-19