International, Regional, and Supply Chain Dimensions of Food Price Stability: Evidence from Indonesia

Food price stabilisation has been an integral part of many developing countries' development goals given its significance for promoting farmer livelihood, enhancing food system resilience, and ensuring food security. The literature concerning food prices is voluminous but has been largely dichotomised between-chain segments and international price transmission with few addressing the linkages between these two aspects. Therefore, the overarching goal of this project is to understand the linkages between international, regional and chain segment-level food prices. Indonesia is a fitting focus given its continuous efforts toward food price stability and the diversity of agricultural commodities critical to the nation's food security and economic performance. The study adopts an econometric technique and a whole-of-chain approach to assess the extent through which international food prices are transmitted to domestic food prices at different levels of the supply chains. The potential consequences of price volatility as external factors transmitted to domestic chains include an impact on the resilience of the domestic food system. Further, internal factors affecting food price stability are expanded by considering the growing climate concerns particularly at the production level. Finally, a system approach is adopted to involve stakeholders in the identification of strategies to improve supply chain resilience. Results from this study will inform policymakers and stakeholders on how they should optimise approaches to improving price stability and food system resilience, which can potentially contribute to poverty alleviation, food security and agricultural development.