The development of food logistics system to support food security and rice price stabilisation: A case study of Banten Province

¹ Indonesian Center for Agricultural Socio-Economic and Policy Studies, Ministry of Agriculture Bogor, Indonesia
² Central Bank of Indonesia, Banten, Indonesia

^* Corresponding author: annisa.f.astari@gmail.com

Abstract

The disruption of the global rice trade caused by climate change, the COVID-19 pandemic, and geopolitical tensions has the potential to harm food security and the stability of domestic rice prices. The main weakness of the current logistics system lies in the accuracy of demand and supply data, as well as the poor condition of the logistics infrastructure, which limits the government’s ability to take immediate action to reduce price fluctuations that occur over a very fast period. This study aims to analyse the existing condition of the rice logistics system in Banten Province by using quantitative descriptive analysis. The results of the study show the high intensity of domestic rice trade and inter-regional dependence; thus, it is important to initiate the improvement of the logistics system in Banten Province. However, data collector institutions found difficulties in obtaining and recording data along the chain. Therefore, it is recommended to a) improve the data monitoring instruments for rice demand and supply and the understanding of these improved instruments, b) increase production capacity, c) strengthen the regional ability to intervene in the market, d) develop infrastructure that supports smooth and efficient distribution, and e) establish inter-regional cooperation to enhance rice logistics systems.