Buku Policy And Productivity Analyses of Indonesian Rice Agriculture

Sinopsis Buku Policy And Productivity Analyses of Indonesian Rice Agriculture

Buku Policy And Productivity Analyses of Indonesian Rice Agriculture | Rice production in Indonesia is important because it contributes more than 50 percent of the total value of the agricultural sector. As a staple food, rice represents the largest caloric intake for more than 200 million people. The discussion of Indonesian rice development provided in Chapter 2 indicates that rice has been a priority in agricultural development. Various programs and investments in infrastructure have been undertaken to modernize rice production. Current policy still gives a priority to rice production through an agricultural revitalization program. This thesis investigates agricultural modernization, consisting of technological change, technical efficiency and allocative efficiency, and its impacts on productivity and the environment on rice agriculture in Indonesia. In Chapter 3, the environmental consequences are analyzed using concepts of biased technological change. Using the concept of production frontier and a data set from the Indonesian Statistical Agency and the Indonesian Centre for Agricultural Socio-economic and Policy Studies, it is clear that agriculture during 1979-1995 underwent technological regress, with environmentally biased technological change. Technological changes in intensive rice agriculture during the Green Revolution were more agrochemical using. Changing to a more environmentally sound policy reduced the intensity of agrochemical use. Analysis of technical efficiency is provided in Chapter 4. Using the concept of the production frontier and a data set from the Indonesian Centre for Agricultural, Socioeconomic and Policy Studies, technical efficiency estimates are obtained. The results show that there is a variation in rice production due to technical efficiency. Household characteristics, composition of labour and tractor use are the sources of variation in technical efficiency. Javanese rice agriculture is the most technically efficient, and technical efficiency of rice agriculture in all regions has increased. Overall, technical efficiency is low. Therefore, there is still considerable room for improvement in rice production, given state-of-the-art agricultural technology. In Chapter 5, further analyses of efficiency related to the use of environmentally detrimental inputs and social efficiency are provided. The results show that there is an indication of low environmental efficiency, leading to significant agrochemical waste. Large-scale farms lead to greater amounts of waste because of large amounts of agrochemicals used. Rice production also fails to allocate all inputs at the correct level. Land is still under-utilised and other inputs are overused. Chapter 6 analyses productivity growth decomposed into technological change, efficiency and scale effects. The productivity growth is also adjusted by the environmental costs associated with the use of agrochemicals. The results show that the total factor productivity growth is driven by technological change and allocative efficiency effects. This is good as the adopted technology is more advanced and the allocation of inputs more efficient. Taking environmental costs into account lowers the productivity growth. But, the environmentally adjusted productivity growth is a fair measure. Productivity growth, as well as environmentally adjusted productivity growth, has increased dramatically over time. The policy implications of the study should ultimately contribute to sustainable increases in rice production and conservation of the agricultural environment. Environmentally friendly technology should be continually developed and applied to reduce agrochemical intensity, and the rate of efficiency improvement should be enhanced. Special attention should be paid to deal with the problem of agrochemical pollution caused by the inefficient use of agrochemical inputs. It is expected that these will bring about a sustainable increase in productivity growth.

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