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All Journal Jurnal Ekonomi Indonesia
Alya Fitri Syalsabilla
Institut Teknologi Sepuluh Nopember
Economics, Econometrics & Finance

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Multi-objective lagrange quadratic programming for rice price stability in East Java Agus Fachrur Rozy; Alya Fitri Syalsabilla
Jurnal Ikatan Sarjana Ekonomi Indonesia Vol 15 No 2 (2026): Agustus 2026
Publisher : Jurnal Ekonomi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52813/jei.v18i2.791

Abstract

Purpose — This study optimizes consumer-level rice prices across districts and cities in East Java while balancing consumer affordability and producer interests. Method — Using monthly retail price data for medium and premium rice from the National Food Agency for January–December 2024, the study applies a multi-objective Lagrange Quadratic Programming model. Regional production and price data are incorporated through weighted contributions, subject to applicable policy constraints. Findings — The model effectively stabilizes medium rice prices, producing an optimal average price below the initial average while remaining within policy limits. Premium rice prices exhibit greater regional variation, although their average remains within the specified constraints. Low objective-function values indicate that the model can reduce regional price disparities and fluctuations.Implications — The findings provide a pre-2025 baseline for identifying regional price disparities and supporting targeted monitoring and distribution interventions. Because the estimates reflect the 2024 production and policy environment, the optimized prices should not be interpreted as current price recommendations. Originality — This study applies a multi-objective Lagrange Quadratic Programming approach to district- and city-level rice prices in East Java while jointly considering consumer and producer interests.
Co-Authors Agus Fachrur Rozy