High value products, supermarkets and vertical arrangements in Indonesia

" Indonesian economy has experienced some major changes during the last three decades and transformed from a predominantly agricultural economy to one that relies more heavily on its non-agricultural sector. Within agriculture, there has also been a change in the contribution of different sub sectors and high value products have grown relatively rapidly making agriculture more diversified. Similar to the changes in agricultural production, food consumption in Indonesia has shown a pattern of change over the past three decades, from a diet characterized primarily by the staple foods of cereals and cassava, to one that includes a larger share of fruits, fish, meats, dairy products and processed foods. Alongside the change in composition of food demand, newer forms of retail have also come up commonly known as supermarkets. However, the emergence of modern retailing has other consequences that go beyond consumers. It requires deep integration with farmers and can influence the production and transaction costs at farm level. It can also influence the distribution of value among different agents involved in production, intermediation, and retailing. In this paper we pursue three interrelated objectives. First, we review the structural changes that have taken place in Indonesian agriculture for the last three decades and the state of high value products. Second, we examine the driving forces behind the production of high value products and the constraints that limit their production. Third, we review the emergence of supermarkets and the vertical arrangements among farmers, traders/distributors, and supermarkets. We have relied both on primary and secondary data sources. Most of the secondary data has come from government directorates, different ministries and the central bureau of statistics (CBS) of the Government of Indonesia. In cases where secondary information was not readily available, we have also collected primary data. Our findings suggest that during the last three decades, there has been a significant structural change in Indonesian agriculture and the production of high value commodities and products –estate crops, livestock, fisheries, fruits and vegetables, and floriculture – has grown faster than the cereals. However, the extent of diversification towards high value products has remained limited to few regions and to few products within each sub sector. Factors that have contributed most in diversification are the rapid growth in income and accompanied changes in urban consumption in favor of high value products and agricultural mechanization. The economic crisis that was triggered by the currency crisis has had a long negative impact on agriculture sector. Structural changes in Indonesian agriculture have been accompanied by changes in consumption pattern in urban areas in favor of high value products and by a major change in retailing in the form of growth of modern supermarkets. To cater to the demand of changed urban consumption needs, supermarkets have been integrating with farmers through formal and informal contracts. This vertical relationship between farms and supermarkets that has been emerging in Indonesia has been helpful to follow grades and standards, to improve quality, and to reduce transaction costs and information asymmetries. It has also been helpful to reduce price and production risks at farm level and to ensure a higher price for farmers compared to traditional value chain. However, it seems that the participation of small holders in the vertical relationship depends largely on vendors. Within the vertical chain, supermarkets appropriate a monopsony rent. Important policies that can be drawn from this study are the greater emphasize on rural infrastructure, user right of state-owned estate to smallholders, promotion of public-private partnerships, encouragements of vertical arrangements, grades and standards, and bringing up the modern retailing sector under the purview of regulatory oversights." Authors' AbstractDiet ,High value agricultural products ,Supermarkets ,

The Rise of Supermarkets and Vertical Relationships in the Indonesian Food Value Chain: Causes and Consequences

This paper reviews the causes of the emergence of modern retailing and the vertical relationships in the Indonesian food value chain, and the consequences of these changes on market organization and value distribution. The findings of this paper suggest that there are both demand- and supply-side factors that contribute to the emergence of modern retailing. The evolution of vertical relationships between farmers and modern retailers observed in Indonesia is a direct response to risks and quality uncertainty. In the vertical relation, large-scale retailers may earn a monopsonistic rent, and there are risks of exclusion of small-scale farmers from the emerging food value chain. However, there are alternative channels through which farmers may sell their products, albeit at a lower price compared to the modern channels, and measures can be instituted to protect them against monopsonistic rents. The findings have important policy implications for developing countries.supermarkets, retailing, Indonesia, food value chain

APLIKASI PEWARNA BUBUK ALAMI DARI EKSTRAK BIJI PINANG (Areca catechu L.) PADA PEWARNAAN SABUN TRANSPARAN

ABSTRAKPewarna alami merupakan alternatif pewarna yang tidak toksik, dapat diperbaharui (renewable), mudah terdegradasi dan ramah lingkungan. Penelitian ini memanfaatkan biji pinang (Areca catechu L.) sebagai pewarna alami. Biji pinang diekstrak kemudian dikeringkan menggunakan pengering semprot (spray drier) menghasilkan pewarna bubuk. Biji pinang mengandung polifenol yang bermanfaat untuk kulit sehingga pewarna bubuk ekstrak biji pinang yang dihasilkan diaplikasikan pada sabun transparan yang biasa digunakan sebagai sabun perawatan dan kecantikan. Tujuan penelitian ini adalah untuk mengetahui pengaruh penggunaan bubuk ekstrak biji pinang dan jenis minyak terhadap karakteristik sabun transparan yang dihasilkan. Bubuk ekstrak biji pinang yang digunakan adalah bubuk ekstrak biji pinang tanpa bahan pengisi dan bubuk ekstrak biji pinang dengan bahan pengisi (gum arab 2% b/b). Minyak yang digunakan untuk membuat sabun transparan terdiri dari dua jenis, yaitu minyak kelapa dan campuran minyak kelapa dengan kelapa sawit (15:5 b/b). Kontrol yang digunakan adalah sabun transparan tanpa penambahan bubuk ekstrak biji pinang. Semua kombinasi perlakuan jenis minyak dan jenis pewarna bubuk ekstrak biji pinang menghasilkan sabun transparan pada kisaran warna merah kuning. Jenis minyak berpengaruh terhadap stabilitas busa dan kekerasan sabun transparan pada semua jenis pewarna bubuk ekstrak biji pinang yang digunakan dimana campuran minyak kelapa dan minyak kelapa sawit (15:5 b/b) menghasilkan sabun transparan dengan stabilitas busa yang lebih tinggi dan kekerasan yang lebih rendah dibandingkan dengan perlakuan menggunakan minyak kelapa akan tetapi tidak berbeda nyata pada kadar air dan nilai pH. Jenis pewarna bubuk ekstrak biji pinang tidak berpengaruh nyata terhadap kadar air, kekerasan dan nilai pH tetapi berpengaruh terhadap stabilitas busa sabun transparan. Keberadaan bahan pengisi gum arab pada bubuk ekstrak biji pinang meningkatkan stabilitas busa pada sabun transparan yang menggunakan bahan baku minyak kelapa. Penggunaan gum arab pada bubuk pewarna ekstrak biji pinang dapat menurunkan perubahan warna pada sabun transparan selama penyimpanan enam bulan.Kata kunci: Pinang, pewarna alami bubuk, sabun transparanPENDAHULUANPinang (Areca catechu L.) merupakan salah satu tanaman palma yang dapat menghasilkan warna. Biji pinang mengandung senyawa golongan polifenol, yaitu flavonoid dan tanin (Amudhan et al.

RANTAI NILAI PRODUKSI MINYAK SAWIT BERKELANJUTAN

ABSTRACTThe purposes of this study were (1) define problems and solutions of the palm oil production value chain, (2) identify the beneficial sustainable programs of the oil palm production, and (3)  formulate sustainable programs in order to increase green quality and green productivity of the oil palm production. The sample was purposely selected by conducting interviews with estate managers, mill managers, and extension workers of PT Hindoli, chairs of the farmers group and chairs of the cooperative board. The collected data were analyzed using analytical hierarchy process. Research results indicated that PT Hindoli’s oil palm production value chain was started from seed suppliers or seed producers, fertilizer suppliers, agriculture tool and machine suppliers, company plantation (nucleus), plasma farmers, mills, exporters, distributors, to retailers. The criteria recommended strategies recommended to implement a sustainable green palm oil production were (1) the production of green ‘nucleus’ FFB, (2) the production of green ‘plasma’ FFB, and (3) the production of green CPO. Keywords: oil palm, value chain, PT Hindoli, sustainable oil palm, plasma farmersABSTRAKTujuan dari penelitian ini adalah (1) mendefinisikan masalah dan solusi dari rantai nilai produksi kelapa sawit, (2) mengidentifikasi program-program yang berkelanjutan menguntungkan dari produksi minyak kelapa sawit, dan (3) merumuskan program-program yang berkelanjutan dalam rangka meningkatkan kualitas dan produktivitas produksi minyak sawit ramah lingkungan. Sampel dipilih secara sengaja yaitu dengan melakukan wawancara dengan manager estate dan manager pabrik, serta penyuluh di PT Hindoli, ketua kelompok tani, dan ketua pengurus koperasi. Data dianalisis menggunakan analytical hierarchy process. Hasil penelitian menunjukkan bahwa produksi kelapa sawit rantai nilai dari PT Hindoli dimulai dari pemasok benih atau produsen benih, pemasok pupuk, alat pertanian dan mesin, perusahaan perkebunan (inti), petani plasma, pabrik, eksportir, distributor, ke pengecer. Kriteria strategi yang direkomendasikan untuk implementasi produksi kelapa sawit ramah lingkungan yang berkelanjutan adalah (1) produksi TBS ‘inti’ ramah lingkungan, (2) produksi TBS 'plasma' ramah lingkungan, dan (3) produksi CPO ramah lingkungan.Kata kunci: minyak sawit, rantai nilai, PT Hindoli, minyak sawit berkelanjutan, petani plasm

APLIKASI PEWARNA BUBUK ALAMI DARI EKSTRAK BIJI PINANG (Areca catechu L.) PADA PEWARNAAN SABUN TRANSPARAN

ABSTRAKPewarna alami merupakan alternatif pewarna yang tidak toksik, dapat diperbaharui (renewable), mudah terdegradasi dan ramah lingkungan. Penelitian ini memanfaatkan biji pinang (Areca catechu L.) sebagai pewarna alami. Biji pinang diekstrak kemudian dikeringkan menggunakan pengering semprot (spray drier) menghasilkan pewarna bubuk. Biji pinang mengandung polifenol yang bermanfaat untuk kulit sehingga pewarna bubuk ekstrak biji pinang yang dihasilkan diaplikasikan pada sabun transparan yang biasa digunakan sebagai sabun perawatan dan kecantikan. Tujuan penelitian ini adalah untuk mengetahui pengaruh penggunaan bubuk ekstrak biji pinang dan jenis minyak terhadap karakteristik sabun transparan yang dihasilkan. Bubuk ekstrak biji pinang yang digunakan adalah bubuk ekstrak biji pinang tanpa bahan pengisi dan bubuk ekstrak biji pinang dengan bahan pengisi (gum arab 2% b/b). Minyak yang digunakan untuk membuat sabun transparan terdiri dari dua jenis, yaitu minyak kelapa dan campuran minyak kelapa dengan kelapa sawit (15:5 b/b). Kontrol yang digunakan adalah sabun transparan tanpa penambahan bubuk ekstrak biji pinang. Semua kombinasi perlakuan jenis minyak dan jenis pewarna bubuk ekstrak biji pinang menghasilkan sabun transparan pada kisaran warna merah kuning. Jenis minyak berpengaruh terhadap stabilitas busa dan kekerasan sabun transparan pada semua jenis pewarna bubuk ekstrak biji pinang yang digunakan dimana campuran minyak kelapa dan minyak kelapa sawit (15:5 b/b) menghasilkan sabun transparan dengan stabilitas busa yang lebih tinggi dan kekerasan yang lebih rendah dibandingkan dengan perlakuan menggunakan minyak kelapa akan tetapi tidak berbeda nyata pada kadar air dan nilai pH. Jenis pewarna bubuk ekstrak biji pinang tidak berpengaruh nyata terhadap kadar air, kekerasan dan nilai pH tetapi berpengaruh terhadap stabilitas busa sabun transparan. Keberadaan bahan pengisi gum arab pada bubuk ekstrak biji pinang meningkatkan stabilitas busa pada sabun transparan yang menggunakan bahan baku minyak kelapa. Penggunaan gum arab pada bubuk pewarna ekstrak biji pinang dapat menurunkan perubahan warna pada sabun transparan selama penyimpanan enam bulan.Kata kunci: Pinang, pewarna alami bubuk, sabun transparanPENDAHULUANPinang (Areca catechu L.) merupakan salah satu tanaman palma yang dapat menghasilkan warna. Biji pinang mengandung senyawa golongan polifenol, yaitu flavonoid dan tanin (Amudhan et al.

IMPACT OF PALM OIL BASED BIODIESEL INDUSTRY DEVELOPMENT ON PALM OIL PLANTATION AND ITS INDUSTRY IN INDONESIA

 ABSTRACT  The increase in crude oil price may disturb Indonesian macroeconomic indicators. As the biggest crude palm oil producer in the world, Indonesia can develop palm oil based biodiesel to reduce the negative impact of crude oil price increase. Palm oil based biodiesel development can influence palm oil plantation and palm oil industry and its downstream industry. By using econometric models, this study found that palm oil based biodiesel industry development will give positive impact on palm oil plantation and palm oil industry and give negative impact on palm oil downstream industry in Indonesia. Simulation can be applied to know the impact of policy on palm oil plantation, palm oil industry and palm oil downstream industry in Indonesia by palm oil based biodiesel industry development. The result of this simulation can be used to formulate the best policy for palm oil based biodiesel industry development. It shows  that when government expenditure and the export tax increase while the interest rate decreases, a higher positive impact will be in favor to palm oil plantation, palm oil industry and palm oil downstream industry. However the rise in export  tax can reduce the area of palm oil plantation. Keywords: palm oil based biodiesel industry, palm oil plantation, palm oil industry, econometric models  

INSTITUTIONAL SYSTEMS ENGINEERING FOR RAW MATERIAL SUPPLY OF GELATIN INDUSTRY TO ENSURE PRODUCT QUALITY

ABSTRACTIn the provision of product for “halal” quality, there are several criteria that must be met in terms of the types of materials or substances, the procedure of preparation, and how to get it. Products being studied were cattle hides, but these products were not automatically considered as halal products, without a tracking process and standard using applied halal standard. To perform a traceability gelatine raw materials, a system was needed which allows the user to obtain information about the origin of raw materials and the quality process at every stage to the finished products effectively. Tracking system (traceability system) involved several parties, who have different needs and goals in the process of providing raw materials. Therefore, institutional systems engineering was needed to manage the tracking process and bridge the procurement of gelatine raw materials, in order to guarantee the quality of products.  It can be used to facilitate the industry and users to create a gelatine standard quality such as standardization of halal quality. The purpose of this study was to formulate the institutional tracking model of raw material for gelatine industry from cattle hide based on various criteria and assessment of experts. The method used in this study were Interpretive Stuructural Modeling (ISM) to formulate an institutional tracking model of raw material for gelatine industry from cattle hide efficiently, Analytical Hirarchy Process (AHP) to select the traceability strategy of raw materials for gelatine industry, and Data Envelopment Analysis (DEA) to analyze optimal performance of the selected model. The results of this study was the provision of infrastructure and information system for tracking raw materials was needed to ensure product quality and levels of halal products, whereas the model using an independent agency within the quality assurance process, the method of procurement contracts with raw material prices according to quality standards, was the most efficient model.Keywords:  gelatine, institutional model, raw material, traceability, quality supply, cattle hid

INSTITUTIONAL SYSTEMS ENGINEERING FOR RAW MATERIAL SUPPLY OF GELATIN INDUSTRY TO ENSURE PRODUCT QUALITY

ABSTRACTIn the provision of product for “halal” quality, there are several criteria that must be met in terms of the types of materials or substances, the procedure of preparation, and how to get it. Products being studied were cattle hides, but these products were not automatically considered as halal products, without a tracking process and standard using applied halal standard. To perform a traceability gelatine raw materials, a system was needed which allows the user to obtain information about the origin of raw materials and the quality process at every stage to the finished products effectively. Tracking system (traceability system) involved several parties, who have different needs and goals in the process of providing raw materials. Therefore, institutional systems engineering was needed to manage the tracking process and bridge the procurement of gelatine raw materials, in order to guarantee the quality of products.  It can be used to facilitate the industry and users to create a gelatine standard quality such as standardization of halal quality. The purpose of this study was to formulate the institutional tracking model of raw material for gelatine industry from cattle hide based on various criteria and assessment of experts. The method used in this study were Interpretive Stuructural Modeling (ISM) to formulate an institutional tracking model of raw material for gelatine industry from cattle hide efficiently, Analytical Hirarchy Process (AHP) to select the traceability strategy of raw materials for gelatine industry, and Data Envelopment Analysis (DEA) to analyze optimal performance of the selected model. The results of this study was the provision of infrastructure and information system for tracking raw materials was needed to ensure product quality and levels of halal products, whereas the model using an independent agency within the quality assurance process, the method of procurement contracts with raw material prices according to quality standards, was the most efficient model.Keywords:  gelatine, institutional model, raw material, traceability, quality supply, cattle hid

PROSES PENYIAPAN GRITS JAGUNG UNTUK PRODUKSI TEPUNG JAGUNG

Penelitian ini bertujuan untuk mendapatkan kondisi proses penyiapan grits jagung hibrida untukproduksi tepung jagung dan mempelajari fenomena pengaruh penambahan papain terhadap kekerasan,kandungan protein, morfologi, dan sifat rheologi tepung jagung yang dihasilkan. Pemilihan degerminatordilakukan terhadap 3 (tiga) tipe peralatan, yaitu polisher beras (tipe A), penyosoh jagung (tipe B) dan peralatanhasil modifikasi (tipe C), sedangkan lama waktu perendaman biji dilakukan selama 10, 20, 30, 40, dan 50 menit.Grits yang dihasilkan selanjutnya diinkubasi dengan papain pada suhu ruang (30oC), konsentrasi papain 0,1; 0,5dan 1,0% atau 70,9; 354,5; dan 709 U/100 mL larutan, dan waktu inkubasi 3, 6, 12 dan 24 jam. Degerminatortipe C dan waktu perendaman 20 menit memberikan hasil grits terbaik, yaitu kandungan lemak 0,75% danrendemen 61,66%. Kekerasan dan kandungan protein grits cenderung menurun seiring dengan peningkatankonsentrasi enzim dan waktu inkubasi. Penurunan kekerasan grits tersebut diikuti dengan meningkatnyakehalusan tepung jagung yang dihasilkan. Pengamatan dengan (Scanning Electron Microscope) SEMmenunjukkan terjadinya penguraian matriks protein pada horny endosperm. Hasil analisis sifat visco amilografidengan RVA menunjukkan profil amilografi tepung yang dihasilkan memiliki kesamaan dengan profil amilografipati jagung komersial.Kata kunci: grits jagung, degerminasi, kekerasan, papain, tepung jagung, ukuran partike