Shallot is a national strategic commodity in Indonesia, but it is development has a fundamental technical, socioeconomic, and policy support problems. Therefore, it is essential to know the competitiveness of shallot in Indonesia and the incentive policy to implement the comparative advantage to become a sustainable competitive advantage. The purposes of this study are to (1) analyze the profitability of shallot farming privately and socially, (2) analyze the competitiveness of shallot farming from a competitive and comparative advantage perspective, (3) review the impact of government policy on shallot farming, and (4) formulate incentive policies in the development of shallot commodities. The empirical results of the Policy Analysis Matrix revealed that shallot farming in production centers in Indonesia has both competitive and comparative advantages. The highest competitive and comparative advantages were found in the dry season in the upland of Malang district with the coefficient values of PCR (Private Cost Ratio) of 0.268–0.508 and DRCR (Domestic Resource Cost Ratio) of 0.208–0.323. The lowest competitive advantage was found in the lowland of East Lombok district in the dry season with a coefficient value of PCR 0.728–0.844. The lowest comparative advantage in the dry season was found in East Lombok district with a DRCR of 0.448, while in the rainy season, it was found in Wonosobo district with a DRCR of 0.522. These results mean that it is more profitable for Indonesia to increase domestic shallot production than to import. Improving shallot competitiveness can be carried out by implementing advanced technology, agricultural infrastructure, capacity building of farmers’ resources, and government incentive policies to increase productivity and competitiveness sustainability.
Indonesian chili faces some problems in increasing production, added value, and competitiveness of chili products, mainly in terms of quantity, quality, and continuity. The objectives of this study are (1) to analyze the private and social profitability of chili farming, (2) to analyze the chili competitiveness from both competitive and comparative advantage perspectives, (3) to examine government policy impact on chili performance, and (4) to formulate strategies to encourage chili development in Indonesia. The results of the policy analysis matrix revealed that chili farming in Indonesia’s production centers is profitable, both privately and socially. It also has competitiveness, both competitive and comparative advantages. The highest competitiveness occurs in Bandung district, West Java, with a coefficient of private cost ratio (PCR) of 0.416 and a domestic resource cost ratio (DRCR) of 0.269. Meanwhile, the lowest competitiveness occurs in Tabalong district, South Kalimantan, with a PCR coefficient of 0.857 and a DRCR of 0.556. This study also concluded that for Indonesia, it is more profitable to increase domestic chili production than importing from abroad. Strategic policies for chili development can be implemented by using hybrid seeds, complete and balanced fertilization, improving irrigation infrastructure and farming roads, increasing the capacity of farmers’ resources, and expanding the objectives and market segments.
Indonesia's government is currently developing garlic commodities in several areas of highland dry land production centres to reduce dependence on imports (94%) from domestic needs. This paper aims to: (1) analyse the benefits of garlic farming financially (private) and economically (social); (2) analyse the competitiveness of garlic farming, both from the perspective of competitive advantage and comparative advantage; (3) review the impact of government policy on garlic farming system; and (4) formulate incentive policies in garlic development. The analysis method was conducted using the Policy Analysis Matrix (PAM) to see Indonesian garlic's competitive position globally. The study area includes Cianjur Regency, West Java; Karang Anyar, Central Java; Pasuruan, East Java; and East Lombok, West Nusa Tenggara. The analysis results showed that garlic farming is financially profitable, but economically less profitable or not profitable. Garlic farming has a competitive advantage but less or no comparative advantage. The value of DRCR >1 shows that Indonesia does not have a comparative advantage in producing garlic. The policy implication is that if Indonesia continues to reduce dependence on imported garlic, it will require breakthroughs in advanced innovation, integrated regional development, agricultural infrastructure support, institutional strengthening of farmers, and farmers' incentive policies.
Fundamental issues in sustainable development of competitive potato production in Indonesia are production and distribution inefficiencies. This study aims to examine the potato production competitiveness through competitive and comparative analyses as well as evaluating the impacts of government policy on potato production. This study employs Policy Analysis Matrix (PAM) to analyse the cross-section data collected from six regencies in Indonesia. Potato production in Indonesia was profitable privately and socially. The highest value of competitive advantage was indicated by PCR value in the dry season in Wonosobo Regency, Central Java Province. The lowest values were found in Bandung Regency. Highest comparative advantage was revealed in Tanah Karo Regency, North Sumatra Province, during the rainy season. Highest comparative advantage was found in Bandung Regency, West Java Province, in the dry season. However, the social profit was lower than the private profit indicating the potato farmers dealt with disincentives due to imperfect market. It implies that increasing domestic potato production will be more profitable rather than import. The policy makers need to evaluate the recent policies on input and output markets as well as the supply chain of potato to cope with imperfect markets in order to increase farmers’ income.
<p>Changes in strategic environment of economic globalization including disruptive innovation require agribusiness actors’ view adjustment. This paper discusses role of agri-entrepreneurs dealing with distrubictive innovation in agriculture. There are three elements of disrupsi innovation, i.e. (i) improvement levels acceptable to customer; (ii) improvement path when new agricultural commodities are introduced and refined through technological innovations; (iii) importance of different understanding between continuous and disruption innovations. Professional managers are encouraged to grow a new business expected to compete with the established ones. Agricultural business models for the upper-middle class consumers run by young entrepreneur produce new products with premium prices but the sale volume is limited. It is important to inspire young agri- entrepreneurs who accustomed to disrupted innovation to develop business based on their goals and market segments.</p><p> </p><p>Abstrak</p><p>Perubahan lingkungan strategis berupa globalisasi ekonomi termasuk disrupsi inovasi memerlukan cara pandang baru pelaku usaha agribisnis. Tulisan ini membahas peran kewirausahaan agribisnis menghadapi era disrupsi inovasi. Ada tiga unsur disrupsi inovasi yang penting, yaitu: (i) tingkatan penyempurnaan yang dapat diterima oleh pelanggan; (2) jalur untuk penyempurnaan melalui terobosan inovasi; (iii) pemahaman yang berbeda antara inovasi berkelanjutan dan disrupsi inovasi. Para manajer profesional didorong untuk menumbuhkan bisnis baru yang dapat bersaing dengan bisnis yang telah mapan. Para wirausahawan muda menjalankan model bisnis pertanian dengan sasaran konsumen golongan ekonomi menengah-atas dengan introduksi komoditas kualitas prima dan harga premium, namun volume pasar terbatas. Implikasinya adalah perlu menyiapkan wirausaha pertanian muda yang memahami disrupsi inovasi untuk menghasilkan produk pertanian berdasarkan tujuan dan segmen pasarnya.</p>
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