The key issues for Indonesian and other developing country policy makers as their economies grow and open up is how to maintain agricultural productivity growth and reap the benefits of stable prices without the costs of current subsidy policies. Agricultural commodities are an important component of production and consumption in developing countries and the efficiency of the agricultural sector and instability in prices can have a major effect on incomes, the macroeconomy and overall stability. Alternative policies aimed at achieving cost effective productivity growth have been suggested, for example a shift from investment in irrigation expansion to increased efficiency of the existing irrigation infrastructure. Similarly, alternative stabilisation policies have been suggested such as development of private storage and insurance markets. To fully analyse such alternatives requires policy advisers to have access to a linked suite of analytic models with sufficient sectoral detail, such as representing the dynamic investment behaviour of farmers under risk, and broad enough coverage to capture economy-wide effects of agricultural policies, such as those concerned with commodity price stabilisation. This grant is enabling IFPRI to extend its past analysis of Indonesian Food Crop Sector, in collaboration with the Center for Agro Socioeconomic Research (CASER), in order to link it with a computable general equilibrium (CGE) model of the Indonesian economy being developed by Ray Trewin of the ANU, and to develop a user friendly version of the food crop supply and demand model which can be used by researchers and policy makers in Indonesian institutions to simulate and evaluate the impacts of alternative polices within the food crop sector.