Dampak Peningkatan Harga Pangan Terhadap Kesejahteraan Rumah Tangga Di Wilayah Rawan Pangan Sumatera

This study aims to analyze the general picture of food consumption and food demandresponse to changes in income, prices, demographic variable, and the impact of rising foodprices on household welfare in household food insecure areas ofSumatera. This study uses rawdata obtained from 2018 The National Socio-Economic Survey (Susenas) BPS-Statistics. Thesample comprises 12,606 households in Sumatera’s food-insecure areas. A Quadratic AlmostIdeal Demand System (QUAIDS) is employed to estimate price and income elasticities, as wellas the impact of demographic and geographical factors on food demand patterns.Compensating Variation (CV) is used to estimate changes in household welfare due to anincrease in food prices. Ten aggregate commodity groups were chosen for this analysis: rice;non-rice grains and tubers, fish, shrimp, squid, shellfish; meat; eggs and milk; vegetables, fruitand nuts; oil and coconut; prepared food; other consumption; and cigarettes and tobacco. Theresults show that the higher the increase in food prices, the more reduction in householdwelfare. The proportion of household expenditure in Sumatera's food-insecure areas isdominated by food consumption. The proportion of household food expenditure in Sumatera'sfood-insecure areas is still dominated by food expenditure. The income elasticity of all foodgroups is positive. Meanwhile, the value of the price elasticity of the entire food group isnegative and to interpret it is absolute so it is positive. The value of cross-price elasticity variesbetween food groups. Income, price, and demographic variables except head of household sexand poverty status have an effect on the pattern of food consumption. An increase in foodprices reduces household welfare. Policy advice for the government is to increase the incomeof the household in Sumatera food-insecurity area, maintain price stability or reduce foodprices.