Determinants of Micro and Small Enterprise Food Industry Market Expansion in Indonesia

One of the indicators that might upgrade micro and small enterprise is the ability to expand their market target outside their location or district. The objective of this article was to analyze the determinants of market expansion for small and medium enterprise especially in the food industry in Indonesia. Market expansion is defined as selling products or services outside the district where the enterprise is located. Secondary data were utilized in the research by using the Micro and Small Enterprise Survey conducted by Statistics Indonesia in 2014 with the data of 21,380 firms. Two analysis were conducted, firstly using the logit analysis in order to differentiate between enterprises selling their products inside and outside the district. The second analysis used Tobit analysis of which the dependent variable is the share of product sold outside the district. Independent variables used in both equations are similar. The results indicated that higher education level, number of labor, value of production, number of enterprise with external finance, number of enterprise located in Java and male-owned firms resulted in higher probability of selling their product outside the district. Moreover, the same variables will also increase the share of product sold outside the district. From the two equations, it can be concluded that the government policy must be addressed in two aspects in order to upgrade the small and medium enterprises, the first is increasing the scale of the enterprises and secondly, fostering financial inclusion for these enterprises.Keywords: micro and small enterprise, logit analysis, tobit analysis, food industry, market expansio

PUBLIC SPENDING AND RURAL POVERTY IN INDONESIA

Indonesia has achieved relatively high economic growth from 1960 until 1997 just before the crisis. During the crisis, the most affected area was the rural area. In 1999, people living under the poverty line in the rural area increased to 26 percent, this number was higher compared to urban area which was 19.4 percent. Public spending has a crucial role in the poverty reduction. The objective of this paper is to investigate the role of public spending, especially agricultural research and development, education and health, in reducing the poverty in Indonesia, especially in the rural area. The result showed that in order to decrease rural poverty the government must focus its effort in increasing TFP by improving literacy rate. Increasing government expenditure on agricultural research will have no effect on rural poverty; meanwhile increasing government expenditure on education will have more effect in increasing agricultural wage rather than non-agricultural wage

THE IMPACT OF TAPIOCA IMPORT ON CASSAVA PRICES IN THE DEVELOPMENT OF TAPIOCA INDUSTRY IN INDONESIA

Indonesian governments needed to import tapioca because Indonesia’s tapioca production was unable to meet the high domestic demand. The presence of imported tapioca made it hard for the local tapioca industry to compete. In the development of the tapioca industry, cassava price holds an important role as it is the main component in tapioca production. It is also an important element in determining cassava farmers’ income. This study aimed to analyze the impact of tapioca import policy on Indonesia’s cassava price determination and to formulate a proposal of tapioca industry development involving cassava prices. The Error Correction Model was used in this study with monthly time series data collected from January 2011 until December 2016. Results showed that the import of tapioca does not affect Indonesia’s cassava price either in the short-term or long-term. However, the price and value of imported tapioca affected Indonesia’s cassava prices. The government has to keep cassava prices low to boost tapioca industry growth. In order to keep getting a high income when the prices are low, cassava farmers need to increase their cassava production and productivity, which can be achieved through extensification and intensification programs. Keywords: tapioca industry, tapioca import, price determination, cassava, EC

Efisiensi Perusahaan Crude Palm Oil (CPO) di Indonesia

Crude Palm Oil (CPO) is an important Indonesian agricultural product as a raw material for cooking oil and an export commodity. In order to achieve maximum profit, the companies producing the CPO need to produce it efficiently. This study used the data from the 2013 Annual Manufacturing Survey conducted by the Statistics Indonesia. In this survey, there were 547 factories producing CPO. The efficiency measurement utilized the Data Envelopment Analysis (DEA) approach using value of production as the output and two inputs, namely the number of workers and raw material value. The results showed that there are 17 factories out of 547 factories which are efficient indicated by the efficiency value of one. Factories owned by the private national companies have the highest average of efficiency followed by the foreign and government-owned companies. In regards to location, factories located in Kalimantan Island have higher average efficiency compared to those located in Sumatra Island and other islands. Meanwhile, factories with local market orientation have a higher efficiency compared to those with export market orientation.Keywords: CPO, efficiency, data envelopment analysis (DEA)ABSTRAKCrude Palm Oil (CPO) merupakan salah satu andalan produk pertanian Indonesia baik sebagai bahan baku minyak goreng maupun komoditas ekspor. Untuk mencapai keuntungan maksimum, maka perusahaan penghasil CPO perlu berproduksi secara efisien. Penelitian ini menggunakan data-data perusahaan sawit yang berasal dari Survei Perusahaan Industri Manufaktur 2013 yang dilakukan oleh Badan Pusat Statistik. Pada survei ini terdapat 547 pabrik yang merupakan penghasil CPO. Pengukuran efisiensi menggunakan analisis Data Envelopment Analysis (DEA) dengan satu output, yaitu nilai produksi serta dua input, yaitu jumlah pekerja dan nilai bahan baku. Hasil yang diperoleh menunjukkan dari 547 perusahaan terdapat 17 perusahaan yang efisien yang ditunjukkan oleh nilai efisiensi sebesar satu. Dari nilai efisiensi tersebut dapat dilihat bahwa perusahaan swasta nasional memiliki rata-rata efisiensi tertinggi diikuti oleh perusahaan asing dan pemerintah. Sedangakan dilihat dari lokasi, perusahaan yang berlokasi di Kalimantan memiliki nilai efisiensi yang tertinggi dibandingkan dengan yang berlokasi di Sumatera dan daerah lain. Apabila dilihat dari orientasi pasar, perusahaan yang mayoritas CPO-nya dijual di dalam negeri memiliki rata-rata efisiensi yang lebih besar dibandingkan yang mayoritas diekspor.Kata kunci: CPO, efisiensi, data envelopment analysis (DEA

The Structural Change in the Supply Chain of Oil Palm – A Case of North Sumatra Province, Indonesia

In this paper, we analyze the structural change in the supply chain of oil palm in North Sumatra, Indonesia, especially after the financial crisis of the late 20th century. We first describe the past and present market structure and conduct of oil palm industries in North Sumatra with an industrial organization approach based on our field study. The analysis reveals that the supply chain of oil palm in North Sumatra has changed such that farmers had more power to determine FFB prices over crushing companies, especially from 2001 through 2004. However, farmers lost bargaining power during 2007-2008 due to a decrease in palm oil demand, plunging of palm oil prices, and a regulation imposed upon crushing companies by the Ministry of Agriculture. To analyze such structural changes empirically, we test the existence of Asymmetric Price Transmission (APT), in which the speed of adjustments of the output price after the input price increases or decreases is different; the existence of APT implies the existence of market power. We apply the (Momentum) Threshold Autoregressive ((M-)TAR) model to estimate APT. According to the estimation results, crushing companies had more power to determine FFB prices over farmers until around March 2002. This situation changed such that farmers had more bargaining power from around April 2002 to around April 2007 before the power became balanced. The structural change test also shows these time points as optimal structural change points. The APT estimation, however, has little rigorous theoretical background, and the concept of APT is not necessarily related to market power. Hence, we next analyze the market power of crushers and farmers both theoretically and empirically. The estimation result of market power indicates that the farmers had no market power before the third quarter of 2002, but they did have market power from the next quarter to the first quarter of 2008, after which time they again lose market power. These empirical results are consistent both with each other and with the descriptions of the structural change. Finally, we conclude and draw some implications for farmers, crushers, and consumers of palm oil.Indonesian palm oil, market power, Asymmetric Price Transmission (APT), (Momentum) Threshold Autoregressive ((M-)TAR) model., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,

Kelayakan Bisnis Peningkatan Produksi Lalat Black Soldier Fly Pada PT Biomagg Indonesia

The business development of BSF insect have problems especially in maggot production. The purpose of this study is analyze the feasibility of best alternatives business strategy to increasing production of black soldier fly. This research was conducted in December 2019-February 2020. The type of data used is primary data of financial and non-financial aspects. Data collected by quantitative method through interviews with Mr. Aminudi as CEO of Biomagg Indonesia Ltd and Prof.Dewi Astuti as an expert of BSF flies. The business feasibility analysis in this study includes aspects of financial visibility (NPV, IRR, profitability index and payback period) and non-financial aspects (legal, technic and operating aspects, management, socioeconomic and nature). The analysis shows that all scenario was worth from non-financial and financial feasibility aspects The problem of deficiencies in supply of organic waste can be solved by running scenario two which Biomagg Indonesia Ltd buy organic waste from traditional market and Islamic school. the financial feasibility of third scenario was worthy to run because it has the best NPV , IRR , profitability index and payback period . the logistic problem can be resolved by running the first scenario to move cages close to the source of organic waste was in urban areas. Biomagg Indonesia Ltd in first scenario made cooperation with Institute of Research and Development Ornamental Fish Culture to built the cage. Biomagg Indonesia Ltd does not need cost to built it. Keywords: business feasibility analysis, black soldier fly, food waste, maggo

Volatilitas Harga Kedelai Dan Integrasi Pasar Kedelai Sebelum dan Sesudah Pandemi Covid 19

Soybean is one of the main food commodity in Indonesia beside rice and corn, so it is necessary to maintain price stabilization. This study aims analyze the volatility of soybean prices and the integration of Indonesian and international soybean markets before and after the COVID-19 pandemic.The ARCH/GARCH model is used in the analysis of soybean price volatility and the VAR/VECM model is used to analyze the market integration between the Indonesian soybean market and the international market. The result of research show that local retail soybean price have a higher price volatility than international soybean price and imported soybean price. Soybean price volatility after the COVID-19 pandemic also showed a higher level of price volatility compared to conditions before the COVID-19 pandemic. Meanwhile, the result of market integration show that there is market integration between the Indonesian soybean market and the American market, and the impact of the COVID-19 pandemic on the formation of local soybean prices at the producer level.Kedelai adalah satu dari komoditas pangan utama di Indonesia selain beras dan jagung, sehingga perlu dijaga stabilisasi harganya. Penelitian ini bertujuan untuk mengkaji sistem agribisnis kedelai, menganalisis volatilitas harga kedelai dan integrasi pasar kedelai Indonesia dan internasional sebelum dan sesudah pandemi covid-19. Kajian sistem agribisnis kedelai dianalisis secara deskriptif yang menunjukkan bahwa sistem agribisnis di Indonesia belum seluruhnya terintegrasi dan saling terikat. Model ARCH/GARCH digunakan dalam analisis volatilitas harga kedelai, yang menunjukkan harga kedelai lokal tingkat pengecer memiliki tingkat volatilitas harga yang lebih tinggi dibandingkan dengan harga kedelai internasional dan harga kedelai impor. Sementara, model VAR/VECM digunakan untuk menganalisis integrasi pasar antara pasar kedelai Indonesia dan pasar internasional, yang menunjukkan terdapat integrasi pasar antara pasar kedelai Indonesia dengan pasar Amerika Kata kunci : Volatilitas, Integrasi pasar, Kedelai

STRATEGI PENINGKATAN DAYA SAING PASAR RAKYAT MELALUI PENGEMBANGAN MODEL BISNIS (STUDI KASUS: PLAZA BOGOR): TRADITIONAL MARKET COMPETITIVENESS IMPROVEMENT STRATEGIES THROUGH THE DEVELOPMENT OF BUSINESS MODELS (CASE STUDY: PLAZA BOGOR)

The success of urban markets in the city are increasingly threatened as it continues to grow with the proliferation of spending shopping centers and convenience stores. This study aims to identify, to map the factors that play a role in the business model, to identify the role and influence of stakeholders, to conduct a gap analysis, to analyze the business feasibility of the revitalization program and formulate a business model development strategy. The research method of this paper uses the Business Model Canvas (BMC) as an analysis tool, stakeholder analysis, business feasibility analysis and gap analysis. This study has identified the most interested and influential stakeholder groups. The business feasibility analysis shows that the revitalization program is very feasible because all of the ratio values are in good condition. The strategy that needs to be developed to get the right results is to do several things; 1) develop the more effective business processes. 2) developing the effectiveness of the use of market facilities and infrastructure and 3) improving financial performance and transparency in order to achieve good corporate gouvernance. Keywords: BMC, traditional market, stakeholder analysis, feasibility analysis &nbsp

Analisis Pemasaran Nenas Palembang (Kasus: Desa Paya Besar, Kecamatan Payaraman, Kabupaten Ogan Ilir, Provinsi Sumatera Selatan)

Pineapple is one of the commodities that make a significant contribution to the Gross National Product (GDP) Indonesian horticulture. South Sumatra is one of the provinces that have a high volume of pineapple production. Pineapple production center is located in Ogan Ilir regency. There are problems in the marketing of pineapples that affect farmers' income. The problem is the high margin difference between farmers and consumers. Therefore, this study aimed to analyze marketing system of pineapples in Paya Besar sub regency. This study used structural approach, conduct approach and market performance. Based on the analysis, there are three channels of pineapple marketing in Paya Besar sub regency. Every channel has different marketing areas. The third channel is more efficient than the other channels. These channel involves farmers, traders village, local wholesalers, and foreign wholesalers. The third channel has the smallest margin, the largest farmer's share and the most equitable spread of benefit cost ratio. In addition, sales volume pineapple third channel is the highest volume and most widely used by farmers