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THE EFFICIENCY OF PUBLIC SERVICE OBLIGATION FOR FOOD SUBSIDY IN INDONESIA: REVIEW OF COST STRUCTURE ANALYSIS

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Author(s): IRWAN TRINUGROHO | SUTOMO | ASRI LAKSMI RIANI

Journal: Perspectives of Innovations, Economics and Business
ISSN 1804-0519

Volume: 7;
Issue: 1;
Start page: 45;
Date: 2011;
Original page

Keywords: Food subsidy | efficiency | cost structure | Indonesia.

ABSTRACT
The paper reviews the efficiency of food subsidy in Indonesia based on cost structure analysis. Using the comparison between cost of good of government and cost of good of National Logistics Board appointed to manage and channel the subsidy. The level of efficiency has decreased in the recent years because of increase in costs of exploitation, management cost and interest expense. It is suggested that government has to determine the cut-off point as a feasibility assessment of cost of subsidy

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