Exploring Farmers' Decision in Utilizing Certified Palm Oil Seeds in Riau Province

Riau Province is the largest center for smallholder palm oil plantations in Indonesia. The productivity of smallholder palm oil plantations is relatively lower compared to private and state plantations due to the low use of certified seeds. This study aims to describe the characteristics of smallholder oil palm businesses and analyze the decisions of smallholders in Riau Province regarding the use of certified oil palm seeds. This research utilized logistic regression analysis. The data used in this study were from the 2014 plantation business household survey conducted by BPS. The number of respondents was 1146 households. The results showed that the variable number of family members significantly negatively affected farmers' decisions to use certified oil seeds. On the other hand, the variables of age, education, capital, farmer groups, and partnership patterns positively influenced farmers' decisions to use certified oil seeds. Meanwhile, the variables of land area, type of land, assistance, and agricultural extension did not affect farmers' decisions to use certified palm oil seeds. Therefore, the decision of smallholders to use certified oil palm seeds is influenced by the number of dependents, age, education, capital, membership of farmer groups, and partnership patterns. Keywords: certificated seed, farmer decision, logistic regression, palm oil, smallholde

Factors Affecting Export of Indonesian Cocoa Beans To Malaysia

Indonesia is an agricultural country with many superior export products, including cocoa beans. Indonesia was once the third-largest cocoa producer in the world. However, there has been a significant decline in the export quantities of cocoa beans in recent years. This research aims to analyze the factors affecting the export quantities of Indonesian cocoa beans to Malaysia using the Error Correction Model (ECM) method. The cocoa bean commodities recorded in this research are whole or broken, raw or roasted with HS code 1801. The estimation results show that the factors that significantly affect the export quantities of Indonesian cocoa beans to Malaysia in the long term include Indonesia cocoa beans production, the export price of palm oil, and the dummy export duty policy. On the other hand, factors that significantly affect the export quantities of Indonesian cocoa beans to Malaysia in the short term include Indonesia cocoa beans production and the dummy export duty policy. Policy recommendations that can be developed include increasing cocoa production and productivity by simultaneously carrying out intensification and extensification programs, reducing exports of cocoa in the form of beans, and rising exports of cocoa in processed form. Keywords: cocoa beans, ECM, export quantities, long-term, short-ter

Price Volatility of Agricultural Products: Evidence From Producer Fruits Price in Batu Municipality, Indonesia

This paper attempts to investigate the price volatility of fruits with higher economic values, which are avocado, apple, guava, banana, and jackfruit, and analyzes the long-term and short-term period relationship between production and prices of these fruits. The data used are the quarterly productions and prices of avocado, apple, guava, banana, and jackfruit on the producer level for 2012 to 2020 obtained from Agriculture office of Batu Municipality. The volatility evaluation was using the ARCH/GARCH. The long-term relationship was analyzed using the Johansen cointegration test, and the short-term relationship used the Error Corection Mechanism (ECM). The results of the volatility analysis confirmed that every fruit studied had a low volatility rate. In addition, the productions and prices of the commodities studied had been cointegrated in the long-run; however only avocado, guava, and apple have a short-run relationship. The government is suggested to provide price and production information systems to ensure farmers' market access. Keywords: price volatility, fruits, ARCH/GARCH, cointegration, EC

Strategy To Increase Participation of Palm Oil Enterprises in Registering Casual Laborers To Labor Social Security Program

Many new positions in palm oil plantations and mills are for casual laborers who are particularly vulnerable to poor earnings, lack of social security, and limited legal support. This study purpose is to identify the alternative strategy that can be taken by BPJS Ketenagakerjaan to increase the number of casual laborers in oil palm plantations who enroll in the labor social security program. Purposive sampling is utilized to collect primary data for this study. Respondents are interviewed and given paper-based questionnaires. The respondents are five experts involved in BPJS Ketenagakerjaan's planning and strategy decision-making processes, specifically the Investigating Supervisory Officer (Petugas Pengawas Pemeriksa), Head of Branch Office, Deputy Director of DKI Jakarta Region, Deputy Director for Corporate and Institutional Membership, and Deputy Director for Special Membership. The results of the questionnaire were processed using Expert Choice 11, based on Analytic Hierarchy Process (AHP) as the analytical tool for this study. The results of this study suggest that BPJS Ketenagakerjaan can employ a law enforcement strategy to increase company compliance as an alternative strategy so that casual laborers are able to enroll in the labor social security program. Keywords: AHP, BPJS Ketenagakerjaan, casual laborers, labor social security, oil palm plantatio

Sugarcane Production Efficiency: A Case Study on PTPN X Partner Farmers

The low production and productivity of sugarcane is a problem for the sugar industry in Indonesia, while the demand for sugar increases yearly. One of the efforts to increase sugarcane productivity is improving the efficiency of sugarcane farming. Appropriate farming efficiency and identification of inefficient resources can increase farming productivity. PTPN X, as a company engaged in the sugarcane plantation and sugar industry, obtains most raw materials from partner farmers. This study aimed 1) to determine the technical, allocative, and economic efficiency of sugarcane farming and 2) to analyze the managerial characteristics of farmers that affect the technical inefficiency of sugarcane farming. This study uses the stochastic frontier Cobb-Douglas production function approach and the dual frontier cost function. The results show that the average level of sugarcane farming's technical, allocative, and economic efficiency are 0.762; 1.315; and 0.976, respectively. The average level shows that sugarcane farming has been technical, allocative, and economically efficient. Farmers' managerial characteristic that affects technical inefficiency is the farmer's education level. The study suggests reducing the effect of inefficiency by taking higher education. Farmers with a low technical efficiency value can adopt the use of inputs by farmers with a higher value. Keywords: technical efficiency, allocative, economic, sugarcan

The Impact of One Belt One Road and Indonesia-Pakistan Palm Oil Trade Liberalization

This study focused more on analyzing the impact of the One Belt One Road initiative combined with the scenario of turning Pakistan into Indonesian palm oil trade and investment hub in the Central Asia, South Asia and Middle East Regions on Indonesia's macroeconomy. The analytical method in this study used GTAP model version 9, with reference year 2011. The results showed that the One Belt One Road initiative combined with the scenario of turning Pakistan into Indonesian palm oil trade and investment hub in the Central Asia, South Asia and Middle East Regions has led to an increase in various components of Indonesia's and Pakistan's macroeconomic variables. However, the benefits received by Indonesia in various components of macroeconomic variables are greater than those of Pakistan. Keywords: One Belt One Road, GTAP, macroeconomy, Pakista

The Impact of Irrigation on The Allocative and Economic Efficiencies On Rice Farming: A Case Study in West Nusa Tenggara Province

The Integrated Participatory Development and Management Irrigation Program (IPDMIP) is an innovative approach to achieve a sustainable irrigation system. This effort is expected to support the achievement of rice self-sufficiency in accordance with the Indonesian Government's Nawacita program. The purpose of this study was to estimate the technical, allocative and economic efficiencies of rice farming in West Nusa Tenggara Province. Data were collected purposively from 240 samples, with 120 samples that followed the program, and 120 samples non-program. Estimation of allocative and economic efficiency using Stochastic Frontier (SFA) with Cobb-Douglas production function model. The results showed that the factors affecting program rice production were land area, seeds, urea fertilizer, and NPK fertilizer, while non-program were land area, seeds, NPK fertilizer, and organic fertilizer. The average achievement of technical, allocative, and economic efficiency of the rice farming program was 0.906; 0.839, and 0.761 while the non-program was 0.741; 0.794, and 0.892. To achieve the level of allocative and economic efficiency, farmers need to improve the achievement of technical efficiency. Keywords: economic efficiency, irrigation, production factors, rice padd

The Value Chain Governance of Robusta Coffee in Bogor Regency

The governance structure is critical in coffee value chain development. An effective coffee value chain governance is expected to improve efficiency, reduce costs, and increase innovation while benefiting consumers and society. This research aims to analyze the governance structure of the robusta coffee value chain in Sukamakmur District, Bogor Regency, West Java. The study employed survey data from 41 actors along the robusta coffee value chains. Kind of actors are farmers, intermediaries, and downstream actors. The data was analyzed using Gereffi’s value chain mapping and governance analyses. The study revealed that the robusta coffee value chain actors consist of farmers, small-scale traders, large-scale traders, regional traders, coffee processing companies, retailers, roasteries, and cafés. Every actor along the coffee value chain has different activities that add value and differentiate the coffee products. The findings indicated that the Robusta coffee value chain governance is categorized as market governance with low information complexity, high information codifiability, and high supplier capability. To strengthen the governance, it is necessary to establish a partnership with downstream actors and carry out intervention from lead firms, to improve coordination among value chain actors and increase coffee quality. Keywords: chain actor, coffee value chain, lead firm, market governance, robusta coffe

Transforming Sustainability and Health System in Dairy Cooperatives: An Innovative Business Model Canvas For Value Creation in Western Java, Indonesia

The dairy industry is in need of a paradigm shift from traditional practices to a contemporary, enhanced system. This study aims to analyze and characterize business models that bring added value to the conventional dairy business, fostering a more sustainable approach to cattle healthcare. While the amalgamation of sustainable practices and cattle health within dairy business models remains relatively unexplored, this study bridges the gap. In the month of April 2022, a cross-sectional study was carried out in selected dairy cooperative (KPS Cianjur Utara), West Java, Indonesia. By conducting a comprehensive analysis of business model frameworks pertinent to the management and staff of dairy cooperatives, a practical approach has been developed. This approach serves the purpose of assisting cooperatives in meticulously evaluating their existing models while also facilitating the creation of novel and innovative business approaches. This tool involves augmenting the Business Model Canvas (BMC), introducing novel dimensions that operationalize dairy farm and cooperative dynamics. The proposed dairy cooperative BMC framework presents a pragmatic structure for formulating and disseminating a holistic, improved model. Diverse dairy cooperative business models have been identified and extensively deliberated upon. Despite varying organizational architectures and approaches to value creation, a common thread of collaboration and adaptability to external fluctuations runs through all these models. This study lays the foundation for transformative change within the dairy sector, aligning it with contemporary sustainability objectives. Keywords: sustainable business, business model canvas, animal health, dairy business, KPS Cianjur Utar

The Factors Influencing Tea Consumers’ Attitude in Banyumas Regency

Tea producers need to understand consumer perceptions of product attributes and consumer attitudes to face tough competition The large selection of products marks the lifestyle of the people in Banyumas Regency consuming tea every day. The research objective was to analyze the effect of scent, taste, brew color, brand, and price on consumer attitudes. The research locations were selected using purposive method, namely Sokaraja District and South Purwokerto Regency because they have the largest population and housing development in Banyumas Regency. The data collection through interviews with 175 tea consumer respondents was selected by convenience sampling, namely consumers who consumed black tea in packs of original tea bags and/or jasmine tea and made purchasing decisions within the household. The analytical method uses structural equation modelling to analyze the factors that influence consumer attitudes. Mostly, tea consumers are women with an average age of 43 years, are married with an undergraduate level of education, and have a household income above IDR 1,970,000. The results showed that floral scent, astringent taste, reddish brown brew color, brand popularity, and affordability price could explain consumer-perceived product attributes, and consumers' evaluation of various product choices could explain consumer attitudes. Consumer perception of taste and brand positively influences consumers. Tea producers should pay attention to consumers' perceived astringent taste of brewed tea and brand popularity because the consumer considers tea's two indicators important attributes. Keywords: consumer perceptions, tea scent, tea taste, tea brew colour, consumer attitude