Jurnal Ekonomi Indonesia
Vol 15 No 2 (2026): Agustus 2026

Multi-objective lagrange quadratic programming for rice price stability in East Java

Agus Fachrur Rozy (Universitas Terbuka)
Alya Fitri Syalsabilla (Institut Teknologi Sepuluh Nopember)



Article Info

Publish Date
31 Aug 2026

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.

Copyrights © 2026






Journal Info

Abbrev

isei

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Indonesia is a journal published by Ikatan Sarjana Ekonomi Indonesia (ISEI) consists of academic articles on various subject areas including monetary and macroprudential regulation, finance and banking system, international economics, development economics, environmental and natural ...