Rahmatullah Rizieq


This study analyzed the impact of subsidize fertilizer policy on farmer's.  The indicators of farmer's welfare were consumer utility and Farmers' Terms of Trade. This study used Imput-Output and Social Accounting Matrix tables as primary data.  Data were analyzed using Computable General Equilibrium (CGE) model. The results of this study show that subsidized fertilizer policy will increase the welfare of not only farmers, but also on consumers. Subsidized fertilizer policy will rise the farmers term of trade. Farmer who has land more than one hectare will obtain huge impact. Subsidized fertilizer policy is not able to rise the optimality of the production for food corp. Subsidized fertilizer policy raises of the production in the fertilizer industri sector. The results of study lead to the following recommendations. First, the use of the subsidized fertilizer must be contolled, therefore it cannot be used to the party who is not eligible to receive the subsidy. Secondly, the export of fertilizer must be limited by paying more attention to the local needs. Finally, the use of the fertilizer must consider the five punctual princpals (lima tepat).

Key Word: fertilizer subsidy, input-output table, social accounting matrix, farmer welfare


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