Abstract
Food is a human basic need and its provision should be secured by the government. In this regard, the government must control the stability of food price particularly in urban areas in which its food demand depends mostly on food supply from surrounding areas as a food buffer. However, the current food buffer system for urban areas has not been able to stabilize food price volatility experienced every year. This is triggered by: first, food supply for urban areas tend to be “business to business” practices. Second, there is no set of regulations that forms the legal framework for cooperation and coordination in the food sector especially between urban and peri-urban areas. The study aims at reviewing and designing food buffer system for urban areas to stabilize food price fluctuation. The study included a case study of food buffer system in Jakarta. Document study and interviews with farmer associations, food traders and local government were conducted. The result shows that institutional innovation for Food Distribution Center could address the challenges of price fluctuation. To do so, a set of legal and policy frameworks on intra-region cooperation between urban and the surrounding areas on food sector is totally required. Key words: Food buffer system, urban areas, regulation.
Highlights
Food is a basic necessity for human beings and its demand is rising alongside the increase of population (Adnyana and Rachman, 1991)
Development of food buffer system for urban areas is explained based on a specific periodization
It can be concluded that development of food buffer system for urban areas through institutional innovation could address the challenges of food supply and price fluctuation
Summary
Food is a basic necessity for human beings and its demand is rising alongside the increase of population (Adnyana and Rachman, 1991). The magnitude of the government’s attention in stabilizing food price is grounded on the fact that food price spikes will significantly affect food availability, inflation, purchasing power, as well as has further implication for public trust (Rachman et al, 2016). The decline in public trust may result in the reduction of the legitimacy of government. To address those circumstances, a set of policies has been formulated by Indonesian Government, namely the Government Reference Price, Floor Price, Ceiling Price, and Prosperous Rice Program (Hendriadi and Rachman, 2018), with purpose to: (a) ensure people’s purchasing power is enhanced and create political stability; (b) establish better market environment; (c) diminish monopolistic practices (Rachman et al, 2018a; Rachman, 2011).
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