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.
The low productivity of domestic soybeans to be one of the problems why the national soybean production can not meet the needs of the domestic market. Besides government policy is not optimal and sometimes contradictory in increasing domestic soybean production contributing to the competitiveness of domestic soybeans to soybean imports this time. The purpose of this study was to analyze the level of financial and economic advantages of farming. Analyze the competitiveness of soybean status. Analyzing the impact of government policy on the competitiveness of soybean in Lamongan, East Java. Analyzing sensitivity on the competitiveness of soybean. In this research using policy analysis the matrix ( PAM ) , the results of the analysis this is used for saw two basic indicators measuring competitiveness , namely private cost ratio ( PCR ) , domestic resource cost ratio ( DRCR ) is an indicator the comparative advantages. The sample of the in this research as many as 120 respondents. The analysis showed that soybean cultivation in Lamongan unprofitable and inefficient financially and economically. Based competitiveness indicators that PCR and DRCR, showed that soybean systems in Lamongan not competitive. PCR coefficient values> 1 and DRCR> 1. This means soybean systems uncompetitive and inefficient. Based on indicators of the impact of government policy divergence to the input-output soybean showed that existing government policies detrimental exploitation of soybean farming in Lamongan. Changes in domestic soybean prices by 15 and 20 percent increases the competitiveness of domestic soybean competitive.
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