Changes in food consumption expenditure during the COVID-19 pandemic in Indonesia

Abstract

Purpose This study aims to explore the structural changes in food consumption expenditure in Indonesia before and during the COVID-19 pandemic using data from the 2020 and 2021 National Socioeconomic Survey by Statistics Indonesia. Design/methodology/approach The quadratic almost-ideal demand system analysis model is used to estimate changes in the share of food consumption and the demand and price elasticity of food commodities in Indonesia. A total of 15 food items are analyzed to determine changes in food consumption expenditure during the COVID-19 pandemic. Findings The results of this study show that during the COVID-19 pandemic, there was an increase in the proportion of household expenditure related to the consumption of home-cooked food. Simultaneously, the proportion of expenditure on prepared food significantly decreased. Practical implications The pandemic has changed household food consumption in Indonesia. This study recommends that the government ensure the availability of supplies and stability of food prices and provide financial subsidies to maintain food consumption, especially for lower-income communities. Originality/value There has yet to be a study on the changes in household food consumption during the COVID-19 pandemic in Indonesia. Therefore, this research provides empirical evidence that there were changes in household food expenditure during the pandemic.