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An Economic Study of the Indonesian Rice Sector: Toward Title Harmonization of Structural Adjustment and Food Security( Dissertation 全文 )

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An Economic Study of the Indonesian Rice Sector: Toward Title Harmonization of Structural Adjustment and Food Security( Dissertation 全文 ) An Economic Study of the Indonesian Rice Sector: Toward Title Harmonization of Structural Adjustment and Food Security( Dissertation_全文 ) Author(s) Ernoiz, Antriyandarti Citation 京都大学 Issue Date 2016-09-23 URL https://doi.org/10.14989/doctor.k20004 学位規則第9条第2項により要約公開; 許諾条件により本文 は2018-12-30に公開; Chapter III published by ©THE Right ASSOCIATION FOR REGIONAL AGRICULTURAL AND FORESTRY ECONOMICS Type Thesis or Dissertation Textversion ETD Kyoto University An Economic Study of the Indonesian Rice Sector: Toward Harmonization of Structural Adjustment and Food Security 2016 Ernoiz Antriyandarti i TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... ii LIST OF FIGURES .................................................................................................................... v LIST OF TABLES ................................................................................................................... vii Chapter I: Introduction ............................................................................................................ 1 1.1. Background of the Study ..................................................................................................... 1 1.2. Research Subjects and Originality ....................................................................................... 3 1.2.1. Competitiveness and Cost Efficiency of Rice Farming in Indonesia ........................ 3 1.2.2. Economies of Scale in Indonesian Rice Production: An Economic Analysis Using PATANAS Data .............................................................................................. 5 1.2.3. Constraints of Farm Size Enlargement in Rice Sector of Central Java: A Case Study ......................................................................................................................... 6 1.3. Organization of the Study ..................................................................................................... 7 Chapter II: General Situation of Rice Sector in Indonesia ................................................... 8 2.1. The Structural Change of the Indonesian Economy and the Income Gap between the Agricultural and Non-agricultural Sectors ........................................................................... 8 2.2. Overview of the Agricultural Sector with Special Focus on the Rice Sector .................... 10 2.3. The Importance of Rice Sector in Indonesian Agriculture ................................................ 14 2.4. Rice Production and Productivity ...................................................................................... 15 2.5. Technology of Rice Production in Main Rice Producing Area ......................................... 20 2.6. Rice Policy ......................................................................................................................... 22 Chapter III: Competitiveness and Cost Efficiency of Rice Farming in Indonesia ............ 26 3.1. Introduction ........................................................................................................................ 26 3.2. Method of Study ................................................................................................................. 27 3.2.1. Estimation of Technical Inefficiency Using Stochastic Frontier Cost Function ..... 27 3.2.2. Measurement of DRC and Estimation of Impacts of Technical Efficiency ii on DRCs .................................................................................................................... 30 3.2.2.1. Trading Cost ............................................................................................... 31 3.2.2.2. Shadow Price .............................................................................................. 32 3.2.2.2.1 Shadow Price of Input-Output .................................................... 32 3.2.2.2.2 Shadow Price of Labor ............................................................... 32 3.2.2.2.3 Shadow Price of Land ................................................................. 32 3.2.2.2.4. Shadow Price of Exchange Rate ................................................ 33 3.3. Results and Discussion ....................................................................................................... 34 3.4. Conclusion .......................................................................................................................... 41 Chapter IV: Economies of Scale in Indonesian Rice Production: An Economic Analysis Using PATANAS Data ............................................................................................. 43 4.1. Introduction ........................................................................................................................ 43 4.2. Method of Study ................................................................................................................. 44 4.2.1. Cost Elasticity of Scale ............................................................................................ 44 4.2.2. Cost Function Approach .......................................................................................... 45 4.2.3. Profit Function Approach ........................................................................................ 46 4.3. Results and Discussion ...................................................................................................... 47 4.3.1. Cost Elasticity of Scale ............................................................................................ 47 4.3.2. Cost Function Approach .......................................................................................... 48 4.3.3. Profit Function Approach ........................................................................................ 52 4.4. Conclusion and Recommendation ...................................................................................... 54 Chapter V: Constraints of Farm Size Enlargement in Rice Sector of Central Java: A Case Study ............................................................................................................................ 55 5.1. Introduction ........................................................................................................................ 55 5.2. Study Area .......................................................................................................................... 57 5.2.1. Geographical Condition ......................................................................................... 57 5.2.2. Agriculture Condition ............................................................................................ 57 5.2.4. Farm Household Characteristic ............................................................................. 58 iii 5.2.5. Current situation of farmland liquidation in study area ......................................... 59 5.3. Scale Economy and Economic Surplus of Rice Production .............................................. 60 5.3.1. Marginal Productivity of Land ................................................................................ 61 5.3.2. Surplus of Rice Farmers ........................................................................................... 62 5.3.1. Production Cost/Unit ............................................................................................... 63 5.3.1.1. Seed Cost/Unit ............................................................................................ 63 5.3.1.2. Fertilizer Cost/Unit ..................................................................................... 64 5.3.1.3. Pesticide Cost/Unit ..................................................................................... 66 5.3.1.4. Labor Cost .................................................................................................. 66 5.3.1.5. Tractor Cost and Draft Animal Cost .......................................................... 67 5.3.1.6. Land Rent ................................................................................................... 67 5.4. Investigation of Constraint of Farm Size Enlargement .................................................... 68 5.4.1. Surplus Labor ................................................................................................................ 68 5.4.2. Characteristics of Land Tenure System ........................................................................ 68 5.4.3. Land Fragmentation....................................................................................................... 69 5.4.4. Land Law ....................................................................................................................... 70 5.4.5. Expectation for Conversion of Agricultural Land to Non-agricultural Land ................ 70 5.5. Conclusion ........................................................................................................................ 71 Chapter VI: Conclusion .......................................................................................................... 73 6.1. Major Findings ................................................................................................................... 74 6.4. Policy Recommendation .................................................................................................... 76 References ...............................................................................................................................
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