Agricultural Power Journal
Vol 3 No 2 (2026): May, 2026

Assessing the Efficacy of Government Floor Price Interventions in Stabilizing Farm Gate Paddy Prices Across Major Indonesian Production Hubs

Sulistyaningsih (Universitas Abdurachman Saleh Situbondo)
Titik ismandari (Universitas Borneo Tarakan)
Alfath Desita Jumiar (Politeknik Negeri Ketapang)
Nurlaila (Universitas Lambung Mangkurat)



Article Info

Publish Date
26 May 2026

Abstract

This study evaluates the effectiveness of the Government Purchase Price (HPP) policy in stabilizing farm-gate paddy prices in major rice-producing regions of Indonesia. Monthly panel data from the Central Bureau of Statistics and the National Food Agency for 2020–2025 were analyzed using descriptive statistics and price parity approaches. The results indicate that HPP serves as an important price protection instrument, but its implementation remains uneven due to logistical constraints and limited post-harvest infrastructure. In South Sulawesi, farm-gate prices were consistently around 150 IDR/kg below the HPP benchmark, while regression analysis revealed a negative relationship between grain moisture content and compliance with HPP standards (β = -0.456). The findings suggest that the effectiveness of the floor price policy depends not only on the established price level, but also on procurement capacity and post-harvest quality management. Therefore, region-specific pricing strategies and investment in drying facilities are necessary to improve farmer welfare and strengthen food price stability in Indonesia.

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Journal Info

Abbrev

apj

Publisher

Subject

Agriculture, Biological Sciences & Forestry

Description

Agricultural Power Journal (APJ), encourages submission of manuscripts dealing with all aspects to optimizing the quality and quantity of both plant, including agricultural economics and management, agricultural engineering and mechanization, agronomy and crop science, biotechnology, ecology and ...