How the Covid-19 Pandemic Affects the Prices of Strategic Commodities in Indonesia

Abstract

This study aims to examine volatility of strategic food commodities price in Indonesia before and during Covid-19 pandemic and to analyze the influence of GRDP and Covid-19 pandemic on prices of strategic food commodities price in Indonesia. Data used is panel data with time series data for quarter 2018-2021 cross section of 34 provinces in Indonesia and uses variation analysis method and panel regression. The results of the analysis show that prices of agricultural commodities, garlic, red chilies, and chicken were more varied before pandemic than during Covid-19 pandemic. Price of cayenne pepper, shallots, beef, and chicken eggs are more varied during pandemic than before Covid-19 pandemic. Prices of industrial commodities, cooking oil and sugar are more varied during pandemic than before Covid-19 pandemic, while price of rice was stable. The result of Random Effect Model regression found that Covid-19 pandemic has positive effect on price of agriculture and industrial strategic food commodities in Indonesia. GRDP only has negative effect on price of industrial strategic food commodities.