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Agrifood Market Restructuring: Drivers, Determinants, and Impacts on Small Scale Producers: The Case of Potato Farmers in West Java Indonesia

Agrifood Market Restructuring: Drivers, Determinants, and Impacts on Small Scale Producers: The Case of Potato Farmers in West Java Indonesia
Ronnie S. Natawidjaja, Ely Rasmikayati, Kusnandar, Dian Purwanto, Thomas Reardon, Huayong Zhi
Universitas Padjadjaran, In Digal, Larry., F. Proctor, and B. Vorley (Eds), Changing Agrifood Markets in Southeast Asia: Impacts on Small-Scale Producers. SEAMEO SEARCA. ISBN 978-971-560-560-145-0. Hal. 53 - 108.
Bahasa Inggris
Universitas Padjadjaran, In Digal, Larry., F. Proctor, and B. Vorley (Eds), Changing Agrifood Markets in Southeast Asia: Impacts on Small-Scale Producers. SEAMEO SEARCA. ISBN 978-971-560-560-145-0. Hal. 53 - 108.

Indonesian food market restructuring has been in a way parallel to the international trend in terms of both the patterns and determinants (comparing to the trends noted in Reardon and Timmer 2007). The retail and processing “symbiosis” is a key part of the food market restructuring. The rapid growth of supermarkets was triggered by the removal of Foreign Direct Investment (FDI) restrictions in 1998 was complemented by the food industry development and the expansion of the urban population. There were three distinct periods of supermarket development in Indonesia (World Bank 2007). The first and second periods were in a general period that can be termed the “pre take-off, domestic cycle” period before 1998. From roughly 1970 to 1983, the supermarket sector in Indonesia was a tiny niche serving expatriates and upper-class Indonesians mainly in Jakarta. Supermarket diffusion became rapid from a very tiny base starting in 1983 and then peaking in the early 1990s, and then declining by the start of the crisis in 1997. This second period was fueled by overall growth translating into rapid growth in upper-class incomes in Java.

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