IMPACT OF MAIZE IMPORT TARIFF POLICY CHANGES ON PRODUCTION AND CONSUMPTION IN INDONESIA: A MULTIMARKET MODEL ANALYSIS

The purposes of this study is at analyzing the impact of maize import tariff policy changes on production and consumption in Indonesia. Three groups of households were assessed in this studi, namely: (1) large scale broiler farming, (2) small scale broiler farming, and (3) other households. Employed data in this study were classified into 3 types: (1) production and input, consumption, and household income, (2) inputs and outputs, and (3) elasticities. The abolishment of the import tariff policy on maize had an impact on increased maize imported and decreased maize price. Decreased domestic maize price was responded by maize farmer through lessing maize planted area and fertilizer input uses that had impact on the declining in maize production. On the other hand, this policy had positive impact on production of rice, chicken meat, and eggs which led to increase incomes of small scale broiler farming and agricultural sector, as well as national. It furthermore increased the consumption for maize, chicken meat, and eggs in Indonesia.