Indonesia is the largest country in exporting crude palm oil (CPO) to the world market. However, the production capacity of the CPO downstream industries in Indonesia must continue to be increased, bearing in mind that Indonesia also imports CPO derivative products. In addition, oil palm plantations in Indonesia still face environmental and social issues, such as: deforestation, damage to peatlands, destruction of wildlife habitat (such as orang-utans) and land tenure conflicts. In this connection, Indonesia needs to continue to develop the CPO downstream industries that can increase added value and foreign exchange, absorb employment, and address environmental and social issues. Therefore we need appropriate government policies to support the development of the CPO downstream industries. The purposes of writing this article were to analyze the factors that influence CPO demand by the CPO downstream industries (ie: palm cooking oil, margarine and soap industry) in Indonesia, and to evaluate the impact of facilitation policy that increasing production capacity of the CPO downstream industries on the CPO competitiveness of Indonesia-Malaysia and the palm cooking oil, margarine and soap competitiveness of Indonesia, as well as the welfare of oil palm farmers in the 2015-2017 period. This article was part of the research of the supply and demand for CPO and its derivative products. The research model specification is a dynamic simultaneous equation, while the model was estimated and simulated using the 2SLS and Newton methods. The results showed that the production capacity of the CPO downstream industries affected CPO demand by the CPO downstream industries. Furthermore, if the production capacity of CPO downstream industries (palm cooking oil, margarine, soap, biodiesel and others) increases, it will increase the Indonesian competitiveness in export CPO and its derivative and welfare of oil palm farmers in Indonesia.
Erosion and pollution in the Citarum River have reached a very worrying stage. To overcome this problem, the government has launched the Citarum Harum program. One of the policies synergistic with the Citarum Harum program is the application of soil and water conservation principles in farming seasonal crops in the upper Citarum watershed (UCW). Historically, policies and programs for developing pro-conservation farming in this area have been carried out for at least three decades but have not been effective. Increasing the effectiveness of policies requires the existence of suitable instruments. Therefore, it is necessary to have a comprehensive and in-depth understanding of the attitudes and behavior of farmers in applying soil and water conservation. This study aims to identify the factors influencing farmers’ probabilities and participation in applying soil and water conservation techniques. A double-hurdle approach is used to identify determinants of farmers’ participation and intensity in applying conservation practices. The data were collected from samples of 244 farm households’ growing seasonal crops out of 499 farm households sample in the Bandung and West Bandung Districts. The results show that the determinants of farmer participation and intensity in the application of conservation lie in the ability to finance, land tenure and utilization, and the physical condition of the land. The level of education only affects participation opportunities, even if the increment is significant. In the future, conservation priorities must be more directed at a vegetative approach through developing synergistic perennial crops with particular efforts to convert vegetables on the sloping lands to perennial crops.
The low quality of fresh milk has become one of the main constraints smallholder dairy farmers face in almost all developing countries, including Indonesia. The low quality of fresh milk has resulted in lower prices received by farmers. It can even result in the rejection of milk by milk processors, which is detrimental to smallholder farmers. This paper aims to analyze the impact of automated and digitized milk collection points (AD-MCPs) on the quality of fresh milk, the price of milk, and smallholder dairy farmers' income in Pangalengan, Bandung, West Java. The data and information of 300 households are part of the baseline survey of 600 smallholder dairy farmers in four districts of West Java between July and September 2017. The results show that AD-MCP facilities have successfully encouraged smallholder dairy farmers to adopt and implement improved management practices to increase dairy cows' productivity and fresh milk quality, resulting in increased prices and farm income.   Therefore, the government needs to endorse, facilitate, and accelerate the development of AD-MCPs to increase domestic fresh milk production, quality of fresh milk, and dairy farmers' income. AD-MCP development is implemented through a partnership between dairy farmers, cooperatives, and milk processors.
Indonesia is one of the main exporters of seaweed in the world market. Seaweed traded consists of raw products and processed products. Processed seaweed products are in the form of gelatin with HS code 130231 and carrageenan with HS code 130239. The high demand and value of processed seaweed products is an opportunity for Indonesia. The total world demand for agar in 2018 was 275,188,000. US$ increased 4.9 percent from the previous year, while carrageenan in 2018 had total world demand amounted to 1,131,820,000 US$, an increase of 8.4 percent from the previous year (ITC, 2019). This research aimed to analyze the competitiveness of processed seaweed and determine policies to increase Indonesian processed seaweed exports in the world market. The data in this study used secondary data. The competitiveness of processed Indonesian seaweed products is measured using Revealed Comparative Analysis (RCA) and Export Product Dynamic (EPD). The results of the analysis showed that processed Indonesian seaweed in the form of carrageenan and agar has comparative competitiveness in the world market. The position of competitiveness in the main destination countries with rising star status has strong competitiveness, but the increasing demand for processed seaweed in the world has caused Indonesia to lose the opportunity to optimize its profits. Indonesia needs to increase the quantity of processed seaweed exports in the form of carrageenan and agar by encouraging domestic investment to develop the seaweed processing industry sector.
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