The Development of Self-Sufficiency in Rice Industry

(case study: East Kalimantan Rice industry problem)

Ani Retno Mulyowati1 Sindy Firdauzi2 Puguh Akbar3

1.

Fakultas Ekonomi dan Bisnis, Universitas Airlangga,

Jalan Airlangga No. 4 - 6,

Kecamatan Gubeng,
Kota Surabaya, Jawa Timur 60115, Indonesia
Email : aniremulya@gmail.com

Abstract
the agricultural sector is a sector that must first be addressed from all sectors because it is
the primary needs of the people, if there are problems in this sector it will be influential in
the whole economy. problems in the agricultural sector itself is a fundamental level of the
rice production has not been sufficient market demand. one of them in the East kalimantan
local rice production reached only 10 of the 100 scales.This issue raises the rice market in
East kalimantan is dominated by outside suppliers with higher prices. supposedly, if each
area have independence troubleshooting in the region especially its food problem. of
course it will be more influenced the regional economy for the better. because the price of
rice that is produced will be lower, many locals get jobs. Thus all the must move, the local
Government has the authority, non-governmental closer to society as well as the
community itself must be joined to resolve this issue
Key : agricultural sector, rice production problem, local authority policy

Introduction
The agricultural sector as the majority of the labor sector places Indonesia earn first on the
general economy. rice is one of the items from the agricultural sector are highly focused by
the Government because it is the primary food of indonesian people and the high market
demand for sure. But a lot of problems to be solved in this sector, one area of East
kalimantan, East kalimantan area of rice production is low, in addition to not being
supported by a great many land is another factor underlying the low quality rice
production in East kalimantan as the distribution , the transfer of land, crops, and the
quality of rice in accordance with the problems in the agricultural sector which is already
presented above, we have two strategies that can be implemented for the opening of the
ground work for the people of Indonesia in the future. but it cannot be resolved on your
own, local governments should also help in the form of extension and local regulations as
well as the local community should also help in fixing the system or the quality of the rice
that is produced as well as the distributor must also be able to lead the market with local
goods so large and efficient economic turnaround in East kalimantan itself.

Agriculture is one of the sectors where there is the use of biological resources in it to
produce a food materials, industrial raw material and an energy source. The role of
agriculture for the country that most of its inhabitants are farmers is great. Especially for
countries that have an agricultural natural resources abundant, fertile soil, plentiful water
and others. In fact the Indonesian agricultural sector only give its contribution of 14% on
the economy Indonesia. If we can improve the productivity of agriculture, then it does not
need to import because within the country are already fulfilled. Increased institutional role
is also very necessary to achieve the triumph of agribusiness. With these economic factors
could focus on the development of agriculture and plantations by utilizing and managing
natural resources in Indonesia. The Government's partiality is indispensable in order to
support this sector. The provision of incentives from the Government to the world effort
needed to turn the producers and the domestic market. (Suratman, 2004)

combinations of input is good. But farmers usually difficult doing this combination,
according to Soekartawi, (1990) because:
1) the existence of ketidaktentuan about the weather, pests, and diseases of plants.
2) Data used for prediction of production function been indicted for possible
not true.
3) drilling program at the production function is not only defined as average description
an observation.
4 price and cost Data) sacrificed may not be done for sure.
5) each farmer and his farming efforts had special properties.
Therefore the decision the use of factors of production both in
the quantity as well as the required combination in one level of production is dictated by
the farmers. In a study of the factors that usually relatively controllable entered into the
free variables, whereas the factors that are relatively less controlled usually counted as an
error.

Discussion
Crop Failure Factors

The production function is a quantitative relationship between inputs and production.

Inputs such as fertilizer, land, labor, capital, and climate that affect large small production is
obtained. Not all of the affected input is analyzed, it depends whether or not the influence
of important input to production. If the form of the production function are known, then
the cost and price information can be utilized to determine the sacrificial
In the implementation of the logging consumer price survey in particular commodity rice,
rice quality selected must be representative of the type of rice the most widely consumed
by the local community. The problem, of compositions of rice which circulates in every
market is different, in addition between the time the same site also has a different
composition. This occurs because:
1. The existence of a difference in season, i.e. season harvest and the famine.
2. Any change of types of rice are produced from area producers.
3. Any change/difference type and quality of the rice distributed by the Government to the
market.
4. Any change requests of the community.

5. The occurrence of nuisance distribution of rice from producers to consumers resulting

from
natural disasters such as floods, earthquakes, and so on.
Therefore, the movement of rice prices need to get attention
specifically, in order to make the calculation that is done can reflect the actual state of
affairs.
Distribution Errors
the main problems on rice production in East kalimantan was the disruption of
distribution, purchasing suppliers with low prices, as well as the difference of the harvest
of each supplier. example of A supplier with harvest moon A but does not accept farmers
other than A farmer so that if A crop fails then the market needs will not be met. the
condition of the road infrastructure and the market became the cause of his difficult
haulage of farmers into the market.
to resolve this problem. then the distributor must use cross-docking systems or gathering
the harvest. like the whole harvest is collected in a single distributor. Rice availability so
there will always be a market for it.
for the streets and transport system could be addressed by working with the train so that
the distribution is more quickly. If the station is not in the range of alternative suppliers is
shortening the distribution chain. It is expected that between farmers and the market are
only linked one distributor or one hand until it reaches the market, in addition to
channelling more quickly the price will certainly be cheap.

Changes in market demand

The fluctuation demand by the public is also influenced by the amount and type of rice on
the market. because many types of rice originating from outside the region, automatically,
consumers will buy rice, it is also influenced by a small number of wholesalers that only
4%.
Samarinda is one of the cities that we make a sample city located in East Kalimantan.
according to the data, the city of Samarinda has lots of rice traders, but from 100% rice
seller, only 4%, the wholesalers, and the remaining 27% of traders mix and 69% of
retailers, it was also able to influence the sale of rice in samarinda, with these
circumstances, the potential price increase will be easier because of the small wholesalers,
so merchants were able to dominate the market price which would also affect the price of
retail traders. thus, the price of rice in samarinda threatened experienced ups and downs,
because the retailer's dependence on wholesalers is very high, and when wholesalers
turmoil (eg, crop failure), the rice market will also experience the same thing.
of rice retail sales data in the city of samarinda, we can know that the sale of local rice so is
low compared with rice originating from outside the region, it is because at least local rice
sellers in the markets samarinda. it is possible, if this is the case because of the minimal
number of large traders in East Kalimantan.

From the percentage, the amount of rice imports from outside Kalimantan is very high, but
in Kalimantan itself just 2%. it is also capable of affecting the economy of East
Kalimantan,or rice in East Kalimantan are very dependent from outside the area. this is
something we think about, because in fact most, east Kalimantan residents work as
farmers. This can be addressed by improving the quality and also the production of rice in
East Kalimantan alone, thus, the economy of Kalimantan on rice sales will not be easily
swayed by the conditions of production of rice in the outer islands.

Decrease in Paddy Fields

from the data below, it can be seen that there is a decrease of agricultural land for paddy
and rice production drastically from 2013 to 2014, from 438 to 424 tons. this can trigger a
decline in the number of local rice circulation on the market so many consumers who
prefer rice from outside the region because of the outstanding amount more than the local
rice.
whereas according to BPS kaltim, most work done by many people kaltim is agriculture.
which was ranked second is trade and the third is social services, from these results, it can
be concluded that the majority of the people in East Kalimantan are farmers, but why the
paddy yield in Kalimantan only slightly, it is due to a decrease of the area under rice
cultivation, and changed to oil palm plantations, as rising oil palm farms. this may be why
sales in the East Kalimantan region has decreased, and have increased in sales of rice from
outside the region.

Conclusion
the main problems on rice production in East kalimantan was the disruption of
distribution, purchasing suppliers with low prices, as well as the difference of the harvest
of each supplier, the compositions of rice which circulates in every market is different, in
addition between the time the same site also has a different composition. The fluctuation
demand by the public is also influenced by the amount and type of rice on the market.
because many types of rice originating from outside the region, automatically, consumers
will buy rice, it is also influenced by a small number of wholesalers that only 4%. There is a
decrease of agricultural land for paddy and rice production drastically from 2013 to 2014,
from 438 to 424 tons. this can trigger a decline in the number of local rice circulation on the
market so many consumers who prefer rice from outside the region because of the
outstanding amount more than the local rice.
things that can overcome the above is to improve the quality of agriculture, and the
government as a regulator should provide rules concerning restrictions on the
manufacture of oil palm land so that not too many of paddy land transfer to oil palm. and
also the government can provide maintenance assistance paddy land, and also provides
some experts to guide the farmers to be able to produce rice quality, because the
government can not keep sending rice from outside the area, because it can turn off the rice
market locally, it is also the community's dependency on rice distance will be high so it will
be able to destabilize the economy when the economic turbulence outside the region.

DAFTAR PUSTAKA

Suratman, Eddy 2004, Dampak kebijakan pengembangan kawasan perbatasan terhadap

kinerja perekonomian
Kalimantan Barat: Analisis simulasi dengan pendekatan SNSE, Jurnal Ekonomi dan
Pembangunan Indonesia, vol V No. 1 Juli 2004, Departemen Fakultas Ekonomi Universitas
Indonesia, Jakarta.
Soekartawi, dkk. 1990. Ilmu Usaha Tani dan Penelitian untuk Pengembangan Petani Kecil.
Cetakan ke-3 .Jakarta: Universitas Indonesia
Tambunan, 2003. Perkembangan Sektor Pertanian di Indonesia: Beberapa Isu Penting.
Jakarta: Ghalia Indonesia
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