Food Sector Analysis in Indonesia : A Social Accounting Matrix (SAM) Approach

Indonesia has a long history in the agricultural management sector. The economic development in Indonesia shows that the development of the agricultural sector has a made great contribution to the change in the Indonesian economy. Agriculture also has an important role in providing employment. providing raw materials for other sectors. as foreign exchange. and as the basis for the food security of the Indonesian population. In the national policy. the government has prioritized the subsidies in the agricultural sector to stimulate it to be more productive. This research has some aims i.e.: to describe the role of the agricultural sector based on the distribution of household income groups in Indonesia; to describe the impact of household income level groups if the subsidies in the agricultural food sector or Indonesia have increased. The research was conducted by using the analysis of Social Accounting Matrix (SAM) with 2008 database. The food sectors are classified into: sector production of: rice. corn and soybeans. other crops. poultry meat (traditional farms). poultry meat (medium and large farms). eggs. forestry and hunting. fishing and others. The results of the study after the policy injection (simulation) show that the food industry has experienced a significant increase in productivity among the economic sectors. Agricultural entrepreneurs are the group that experienced a high increase in income among farming households. In addition. linkage analysis showed that the commodities of other food industries has experienced forward and backward linkages.