Examining the Impact of Price and Income on Local Food Choices in Papua, Eastern Indonesia

In Indonesia, carbohydrate consumption traditionally revolves around rice, overshadowing the rich diversity of tuber-based foods. Papua Province, in Eastern Indonesia, stands out as a region where non-rice staples hold prominence. Despite this, studies on food choice in Papua Province predominantly relied on qualitative methodologies, limited geographical coverage, and small sample sizes. This paper delves into the effects of price and income on the consumption patterns of staple food in Papua Province. It introduces an innovative approach, employing the Quadratic Almost Ideal Demand System (QUAIDS) to account for non-linear relationships between income and consumption. It utilizes the Iterated Linear Least Squares (ILLS) estimator to address endogeneity issues likely to arise from price heterogeneity faced by consumers within the same district. Utilizing data from the 2019 National Socio-Economic Survey (SUSENAS), the paper calculates food price and expenditure-income elasticities. The findings reveal that rice is a normal good across most income groups, while local tubers are considered a luxury good for wealthier and urban populations. Contrary to previous studies, the paper challenges the notion that local food is inferior, demonstrating that it holds significant value among higher-income groups. Additionally, local tuber consumption is highly price-elastic, indicating that price stability is crucial for its continued consumption. The paper also explores the shift towards ready-to-eat foods, which may impact health and household budgets. Policy implications suggest promoting local tuber foods by stabilizing prices, improving income distribution, and enhancing market access to tuber foods. These efforts can reduce reliance on imported rice, contributing to food sustainability and self-sufficiency in Papua.