Rice Price Ceiling (HET) regulation's effect toward rice's inflation rate in South Sulawesi

Abstract

Abstract This study discusses to analyze the highest retail price policy for rice retailers released by the Minister of Trade in September 2017 against the rate of rice sales, in South Sulawesi Province. This study used three cities that were considered to represent South Sulawesi in a comparative calculation: Makassar City, Pare-pare City and Bone District. All variables are analyzed using Multiple Linear Regression. These variables are rice stocks, rice price margins, real exchange rates, and exchange rates of each region. Data is taken from April 2016 to December 2018 and uses calculated from month to month. The conclusion. This is evidenced by 4 of the six equations that are agreed by the dummy variable value of each equation. Therefore, the government must return this policy to reach a level that can be entered below the expected target.

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