Abstract:
This research seeks to analyze the influence of Agreement on Agriculture (AoA) to the changing of Indonesian food policy and the condition of agricultural commodity especially rice post AoA. It is important to analysis the involvement of World Trade Organization (WTO) by its AoA to the changing of Indonesian policy in food commodity based on liberalization principals because it drove government change their policy that finally gave many advantages or disadvantages to the Indonesian agricultural sector commodity. The governmental regime of Indonesia has a the tendency to liberalize its agricultural sector since the Agreement on Agriculture (AoA); one of the rules of WTO was signed by Indonesia in 1994 . This article shows that the changing of the statue has an absolute consequency in its authority. BULOG has no more power tightly in monitoring and controlling the agricultural commodity, include in giving the subsidy to the farmers and making the rules of import. The farmers in many areas in Indonesia were collapsed because of “price war” and lack of subsidy from government because of the legal binding rules in AoA order to cut all of the kinds of government aids and interference to the market. and finally Indonesia become net-importer.
