Arief Daryanto

Transformation of the Indonesian Agrifood System and the Future beyond Rice: A Special Issue

INTRODUCTION The Indonesian agricultural and food policy debate, and most research literature on the topic, has for decades been rice-centric. Yet rice is only one part of Indonesia’s food economy, and it is increasingly being eclipsed in consumer food budgets by other product categories. In 2010, urban consumers in Indonesia spent 16% of their food budgets on rice, 15% on fruit and vegetables, and 22% on animal proteins (meat, fish, eggs, and dairy). Rural consumers spent 24%, 17%, and 20%, respectively (Reardon et al. 2014). Yet these important diversification products have received little coverage in the policy debate.1 The policy debate and the literature have tended to focus on two poles of the agrifood economy: farming per se, with much less attention paid to the off-farm components of the agrifood system (such as processors, wholesalers, retailers, and logistics agents), and foreign trade in agricultural products. These poles are important, but they exclude a great deal that is crucial to feeding an increasingly urban and affluent Indonesia. The farm segment accounts for only 30%–60% of the costs and value added of Indonesia’s rural–urban food supply chains; farms account for roughly half of urban Indonesia’s food costs. Seen another way, the performance of processors and distributors is as important to Indonesian food security as the yields of farmers (although food cannot be processed and distributed unless it is grown).

Global Value Chain of Indonesian Pulp and Paper Industry

Global Value Chain (GVC) has been a global phenomenon since 1980s when export values no longer represented the actual benefit of a country’ economic measure. Furthermore, GVC measurement applying input-output table approach has quite rapidly developed. Given the fact that the role of Indonesian pulp and paper industry is increasingly important in the country’s economy, this study aimed at measuring the pulp and paper industry GVC in 1995 and 2011 as well as its position and participation in the global GVC using Inter-Country Input-Output (ICIO). The results show that GVC of Indonesias pulp and paper industry is generally in the form of value-added exports in intermediate absorption by direct importers and indirect final exports and also in the form of foreign value-added return in foreign countries in intermediate exports and also value-added exports in intermediate goods exports to the third countries. GVC Indonesia is also still dominated by domestic value-added compared to foreign value-added and remains in a “downstream” position and has decreased its GVC participation globally. In the future, it is important to strengthen GVC participation by maintaining greater ownership of domestic value- added in Indonesias pulp and paper industry. Keywords: global value chain, pulp and paper, Intercountry input-output, GVC position and participation

Linking Supply Chain Governance and Biosecurity in the Context of HPAI Control in Western Java: A Value Chain Perspective

Despite extensive efforts to control the highly pathogenic avian influenza (HPAI), it remains endemic in Western Java, Indonesia. To understand the limited effectiveness of HPAI control measures, it is important to map the complex structure of the poultry sector. The governance of the poultry value chain in particular, could play a pivotal role, yet there is limited information on the different chain governance structures and their impacts on HPAI control. This article uses value chain analysis (VCA), focusing on an in-depth assessment of governance structures as well as transaction cost economics and quantitative estimates of the market power of different chain actors, to establish a theoretical framework to examine biosecurity and HPAI control in the Western Java poultry chain. During the research, semi-structured interviews were conducted with key value-chain stakeholders, and the economic performance of identified actors was estimated. Results indicated the co-existence of four different poultry value chains in West Java: the integrator chain, the semi-automated slaughterhouse chain, the controlled slaughter-point chain, and the private slaughter-point chain. The integrator chain was characterized by the highest levels of coordination and a tight, hierarchical governance. In contrast, the other three types of value chains were less coordinated. The market power of the different actors within the four value chains also differed. In more integrated chains, slaughterhouses held considerable market power, while in more informal value chains, market power was in the hands of traders. The economic effects of HPAI and biosecurity measures also varied for the identified actors in the different value chains. Implementation of biosecurity and HPAI control measures was strongly related to the governance structure of the chain, with interactions between different chains and governance structures accentuating the risk of HPAI. Our findings highlight that a proper understanding of the chain governance structure is vital to improve the effectiveness of HPAI control measures, by making the interventions more specific and fit-for-purpose given the incentive structures present in different chains.

STRATEGI PENGEMBANGAN NANOTEKNOLOGI DALAM RANGKA PENINGKATAN DAYA SAING INDUSTRI PERTANIAN NASIONAL DENGAN MENGGUNAKAN SWOT-ANP

Nanotechnology is believed to give a significant added value to agricultural industry. Various applications of nanotechnology provide opportunities for improving the global competitiveness of agricultural industry. This study aims to assess nanotechnology development strategy at the national agricultural industry by using quantitative SWOT method and ANP in BOCR (benefit, opportunity, cost, risk) perspective. The results from these two approaches were then compared. There were four stages of research procedure that consists of 1) analyzing agricultural industries that apply nanotechnology using quantitative SWOT, 2) formulating nanotechnology development strategy in the TOWS matrix quantitatively, 3) determining strategy alternative for developing nanotechnology on agricultural industry with ANP in BOCR perspective and 4) assessing comparatively weight value of each strategy alternative using quantitative SWOT and ANP in BOCR perspective. Data was collected by conducting FGD (group discussion forum) for 20 participants and questionnaire to 10 experts in the field of food chemistry, agriculture, nanotechnology and policy. Results show that in formulation of nanotechnology development strategy on national agriculture industry, aspects of opportunities and positive impact are taken to account more than that risk and economic aspects. ANP results indicate that nanotechnology development on national agricultural industry is still in the early stage where strategy that leads to increased mastery of technology is payed more intention than the implementation of research result itself, socialization of nanotechnology safety and governance of policies. Strategy formulation done by ANP in BOCR perspective is slightly difference than that of done by quantitative SWOT method which uses only independent variables. The result of this study can be used as a reference for stake holders for strategic decision making in relation to improving competitiveness of national agricultural industry through the development of nanotechnology.

COMPETITIVENESS OF INDONESIAN TEA IN INTERNATIONAL MARKET

Since 2000, Indonesian tea has experienced a lot of problems such as land use change of plantation, lower selling prices, and low productivity. The objectives of this study are to analyze the competitiveness of tea in Indonesia and formulate priority improvements that can support the increasing competitiveness of Indonesian tea. The methods used to analyze the competitiveness were the Revealed Comparative Advantage (RCA) and the Export Product Dynamics (EPD), and to formulate strategies to increase competitiveness, Importance Performance Analysis (IPA) was applied. Based on RCA, the types of Indonesian tea which have strong competitiveness are HS 090 210 and HS 090240. The EPD analysis showed that only tea of HS 090210 is in the rising star position, while the HS 090220, HS 090230 and HS090240 tea types are on the retreat position. Based on IPA, sub-determinants which are priority to improve are in quadrant A (under act) consisting of five sub-factors, namely the availability of human resources with the capbility of production management, marketing and possess an entrepreneurial spirit; availability and ease of access to capital; strengthening of the structure of Indonesian tea agribusiness; the government policies in improving domestic demand conditions and in encouraging the development of tea processing industry. Keywords: competitiveness, tea, RCA, EPD, IPA

Strategic formulation to increase white tea competitiveness (Case study: Research Institute for Tea and Cinchona)

White tea is a new product in Indonesia’s tea industry. It is a product developed by Research Institute for Tea and Cinchona in order to revive Indonesia’s tea industry. White tea has uniqueness in its relatively high price and high market demand that not affected by its high price. The increasing number from Indonesia’s middle class income could also become white tea’s new potential consumer because they put quality and health first than the price. White tea’s high price and demand attract new players in this industry. The appearence of new competitors make this in-dustry more competitive. That’s why it’s necce-sary to find a way to win the compettion and to keep the domination in the white tea industry through strategic formulation. There were two steps in strategic formulation used to produce the strategies. The first is analyzing the com-pany environment using internal factor evalua-tion (IFE) and external factor evaluation (EFE). The second is using internal and exter-nal (IE) matrix and strength weakness oppor-tunity and threat (SWOT) analysis. IE matrix showed the position of company using infor-mation from IFE and EFE. SWOT analysis resulted strategies using information from the company’s strength, weakness, opportunity, and threat. IFE and EFE showed that the company has strong internal power and good respond to external factors. IE matrix showed that com-pany is in grow and build stage. IE matrix and SWOT analysis showed that the alternative strategies for the company are market pene-tration, market development, product develop-ment, forward integration, backward integ-ration, and side integration.

STRATEGI PENINGKATAN KETAHANAN PANGAN DINAS PERTANIAN DAN KETAHANAN PANGAN KOTA TANGERANG SELATAN

ABSTRACT The aim of this study was to analyze difference and compare the determinants of stunting among under five years children considering different ecosystem in Kupang. It is an observational study using case control of under five children with and without stunting. There were 132 subjects chosen from lowland, middleland region, and mountainous ecosystem zones. Data was analyzed using Multiple Logistic Regression Analysis. The analysis resumes that determinants of stunting in lowland area is energy intake (p=0.002; OR=0.059; 95%CI:0.010-0.359), energy intake is a protective factor, in the middleland region is love and cares (p=0.002; OR=9.247; 95%CI:2.213-38.644) and sanitation (p=0.046; OR=2.832; 95%CI:1.020-7.860). Furthermore, the environmental sanitation as the factor in mountainous area (p=0.034; OR=3.978; 95%CI:1.112-14.230). The impact of stunting if left untreated will cause problems for generation in the future, for example impairment of mental development and physical growth, and it will end in poverty and the threat of life survival, so it need a proper intervention to handle it. Keywords: determinants, ecosystem zone, stunting ABSTRAK Tujuan dari penelitian ini adalah menganalisis gambaran dan membandingkan pengaruh variabel faktor penentu stunting anak balita pada berbagai zona ekosistem di Kabupaten Kupang. Jenis penelitian menggunakan desain observational dengan rancangan case control antara kelompok balita stunting dan normal. Jumlah subjek penelitian ini sebanyak 132 subjek yang terbagi pada tiga zona ekosistem dataran rendah, dataran sedang, dan pegunungan pada bulan Maret 2015. Data dianalisis dengan menggunakan Analisis Regresi Logistik Berganda. Hasil penelitian menunjukkan faktor penentu stunting pada zona ekosistem di Kabupaten Kupang adalah sanitasi lingkungan (p=0,002; OR=2,307; 95%CI:0,120-0,721), dan kejadian sakit (p=0,007; OR=0,294; 95%CI:0,120-0,721); di zona ekosistem dataran rendah adalah asupan energi (p=0,002; OR=0,059; 95%CI:0,010-0,359) asupan energi sebagai faktor protektif; di zona dataran sedang adalah praktik kasih sayang (p=0,002; OR=9,247; 95%CI:2,213-38,644) dan sanitasi lingkungan (p=0,046; OR=2,832; 95%CI:1,020-7,860) dan di zona eksosistem pegunungan adalah sanitasi lingkungan (p=0,034; OR=3,978; 95%CI:1,112-14,230). Dampak yang ditimbulkan dari stunting jika tidak ditangani akan menimbulkan permasalahan bagi generasi di masa mendatang misalnya perkembangan mental dan pertumbuhan fisik terganggu, dan berakhir pada kemiskinan dan ancaman kelangsungan hidup sehingga memerlukan intervensi yang tepat dalam penanganannya. Kata kunci: faktor penentu, stunting, zona ekosistem

STRATEGI PENINGKATAN DAYA SAING TEMBAKAU BESUKI NA-OOGST BERBASIS PERBAIKAN KINERJA MUTU

The purpose of this study was to formulate strategies for improving the competitiveness of the industry by recommendations for improvements in the quality performance of Besuki Na-Oogst tobacco of PT IBB. The secondary data were collected from the company archives and judgmental sampling was used to collect primary data from two experienced respondents. The analysis method used was descriptive analysis, Pareto diagrams, fishbone diagrams, and Analitycal Hierarchy Process (AHP). The findings of this study showed that the factor of human resources was the main cause of the declining in BesNO tobacco quality performance in PT IBB. The strategy based on the priority to improve the quality performance is improving the quality of human resources, especially in the division of quality control and production through employee’s skill training. The managerial implications of the study suggested the company to be more focused and concerned with improving the quality of employee’s performance in order to improve the performance of the companys quality and competitiveness of the products. Keywords: Besuki Na-Oogst tobacco, competitiveness, quality performance ABSTRAK Penelitian ini bertujuan merumuskan strategi peningkatan daya saing industri berdasarkan rekomendasi perbaikan kinerja mutu tembakau Besuki Na-Oogst di PT Indonesia Bintang Baru (PT IBB). Pengumpulan data sekunder penelitian diperoleh dari arsip perusahaan dan judgemental sampling digunakan terhadap dua responden ahli untuk memperoleh data primer penelitian. Metode analisis data yang digunakan meliputi analisis deskriptif, diagram pareto, diagram tulang ikan dan Analitycal Hierarchy Process (AHP). Hasil penelitian menunjukkan bahwa faktor sumberdaya manusia merupakan penyebab utama terjadinya penurunan kinerja mutu tembakau BesNO di PT IBB. Prioritas strategi yang dapat dilakukan oleh perusahaan adalah peningkatan kualitas sumber daya manusia, dalam hal ini karyawan pada divisi quality control dan produksi melalui kegiatan pelatihan karyawan. Implikasi manajerial hasil penelitian merekomendasikan perusahaan agar lebih fokus dan memperhatikan peningkatan kinerja mutu karyawan untuk dapat meningkatkan kinerja mutu perusahaan dan daya saing produk. Kata kunci: tembakau Besuki Na-Oogst, daya saing, kinerja mutu

FAKTOR-FAKTOR YANG MEMPENGARUHI SUSTAINABILITAS PERTUMBUHAN FINANSIAL LEMBAGA KEUANGAN MIKRO DI JAWA TIMUR

Since the monetary crisis in 1998, Indonesias economy has not fully recovered as indicated by slow economic growth which has not reached yet 8% each year. These conditions load to growing number of unemployed and hence create many demand from the large number of micro enterprise for loan. There were about 50 million micro entrepreneurs which was served only by 56 thousand units of MFIs (Microfinance Institution). This fact intrigued a deep comprehensive analysis at supply side, i.e. the MFIs. The analysis was to study factors that inhibit the sustainability growth of MFIs in order to increase the number of micro business loans. The research was located in East Java province due to the fact that more than 70% MFIs located in Java island and the largest MFIs is in East Java. The samples were obtained by purposive sampling technique and then analysed using descriptive statistics, ordinal logistic regression and biplot. The result proved that the factors which significantly influence the growth of financial sustainability were Regulation, Institutions, Efficiency, CAR (Capital Adequacy Ratio), ROE (Return on Equity), ROA (Return on Asset), LDR (Loan to Deposit Ratio), loan, NPL (Non Performing Loan), HRD (Human Resources Development) and Interest rates. While the factors that did not have significant effect were competition and income per capita. Keyword : Microfinance Institutions (MFIs), Performance Analyze, Financial Sustainability, Ordinal Logistic Regression

ANALISIS KEBIJAKAN SUBSIDI PUPUK : PENENTUAN POLA SUBSIDI DAN SISTEM DISTRIBUSI PUPUK DI INDONESIA

This study aims to determine an alternative subsidy model and distribution system of fertilizer in Indonesia. The purpose of the research in details are to create a framework of fertilizer subsidy policy, analyze factors that are affecting the fertilizer subsidy policy, and to select the best alternative subsidy model and distribution system of fertilizer. Analitical methods used to answer these purposes is by using the Analytic Network Process (ANP) which is also supported by literature study, focus group discussions and interviews with expert respondents. The result concludes that the conditions that affect fertilizer subsidy policy is the economic condition, The main priority of the fertilizer subsidy objective is availibility of fertilizer, the most prioritized fertilizer subsidy is the subsidy for inorganic fertilizer, Ministry of agriculture is the most important actors in the implementation of the fertilizer subsidy policy, and the most important factor considered in choosing a fertilizer distribution system is supervision. The choice of fertilizer subsidy policy in Indonesia is the indirect subsidy model through the manufacturer and its distribution system is conducted by the manufacturer to the farmer.