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A key issue for Indonesian policy makers as the economy grows and internationalises is how to maintain agricultural productivity growth and reap the benefits of stable prices without the increasing costs of current policies The Indonesian livestock sector is becoming a focus of attention in this regard because of the marked changes taking place in incomes and consumption patterns, and the production links with the important grains sector. Indonesian livestock supply and demand responses are estimated for incorporation into an extension of an Indonesian food crop supply and demand model (FCSD) in order to evaluate various policies such as those that affect input and output prices. These estimates are also incorporated into a Computable General Equilibrium (CGE) model of the Indonesian economy with an emphasis on agriculture (INDOGEM) to enable complementary analysis of such policies, taking account of additional aspects such as budgetary constraints.


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