Factors Affecting the Demand and Supply of Garlic in Jakarta, Indonesia

This study aims to analyze the factors that influence the demand and supply of garlic in Jakarta. The research methodology used involves quantitative analysis using PLS-SEM (Partial Least Square-Structural Equation Modeling) with the help of SmartPLS Software and data collected from secondary sources, such as the Ministry of Agriculture of the Republic of Indonesia, the Ministry of Trade of the Republic of Indonesia, and the Central Statistics Agency of the Republic of Indonesia. The results showed that exogenous variables (per capita income, onion prices and garlic prices, and population) are able to predict garlic demand in Jakarta with a very large value, namely 84.6%. Meanwhile, the supply of garlic in Jakarta can only be predicted by exogenous variables (import tariffs, prices of onion and garlic) by 32%. The Factors that significantly influence the demand for garlic in Jakarta are the price of garlic itself, population, age structure and per capita income. Meanwhile, it has been proven that the price of onion has no significant effect on the demand for garlic in Jakarta. In terms of the supply of garlic in Jakarta, the price of garlic and the price of onion are stated to have a significant influence on the supply of garlic in Jakarta because both are substitute products, apart from that because changes in input prices and consumption patterns also occurred in Jakarta during that period. However, import tariffs do not have a significant effect on the supply of garlic in Jakarta. Recommendations are given so that the Indonesian Government, especially the Jakarta Government, can make effective policies and form a special work unit to maintain price, demand and supply stability in the garlic market. Further research is recommended to explore additional factors that influence the demand and supply of garlic in Jakarta.