Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013
Palembang, South Sumatra -Indonesia, 24-25 October,2013
28 Farmer groups is a sum of farmers ranchersgrowers are formed on the basis of shared interests, equality
under the condition of social, economic, resource and familiarity to improve and develop members
[5]
. Institutional farmers farmer groups has a function as a place of learning, a vehicle of cooperation, provider
of tools and supporting unit production, unit production, processing and marketing units and supporting servises services
[6]
. The performance of an institutional system is the result of a complex process in a system of interaction. Institutional performance is determined by the pattern of interactions, that in the sistem was
contained the action situation variable and the actors variable
[7]
. Institutional analysis is help to identify the constarins within organizations that can undermine policy implementation.The contrains may exist at the
level of internal proceses , relationship concerns among organizatiom eg between ministries or be a product that the way the system is organized reporting hierarchies or operates the financial year is not
folowed in practis and accaunt are not closed‖. Institutional analysis was studied the formal institutional as well as power of soft instrumentation on many levels, such regulations and power structure at various level
[8]
. Institution that related to Integration System of Beef Cattle and Oil Palm is the institution of farmer
groups and cooperative. Institutional performance could be measured from two aspects, namely organization management and administrative management. Organisation Management of cooperative
consisted of the establishment of the structure, the presence of members at the meeting, and the duty participation of tasks. While aspects of administrative management consisted of the meeting intensity, the
existence of the principal books, supporting book, work plans, and facilities owned. Similarly, for the farmer groups performance, aspects of organizational management are working distribution, members task
agreement, and the idea contribution for solving the problems . By knowing the potency and performance of institutions in the Integration Systems of Beef Cattle and Oil Palm, as well as faced the problems, it is
expected to formulate a strategy to empowering the farmers through SISKA program for improving the national beef cattle population.
3. Method
The research was conducted at the around area of PT Andira Agro, at
Kumbang Padang Permata
village of Banyuasin I District, Banyuasin Regency, that all of farmer of palm oil population was had partnership
with PT Andira Agro. The research was based on survey method, and simple random sampling. There are 30 farmer was taken as responden for representing of 350 oil palm farmers. Primary and secondary data was
collected in July-August 2013. The data was processed and analyzed by tabulation and descriptive analysis for meeting the appropriate research objective. The measurement of institutional performance variable was
done by assigning scores to the indicator variable, then analyzed descriptively.
4. Result and Discussion
4.1. Socio-Economic Conditions Community on SISKA Development Area
The village of
Kumbang Padang Permata
, Banyuasin I District, Banyuasin Regency, was located at 30 m above sea level, 60 km from the capital city of South Sumatra Palembang. It could be reached within 1.5-2
hours by speedboat, or 2 hours through land road by car. The villages was covering an area of 1485 hectares, consisted of peat land which was suitable for oil palm plantations. The majority 88.78 of land was used
for agriculture, and 8.23 for the settlement, and the remaind area was for buildings, roads, cemeteries, and village economic activities. The population was amount of 1,221 people, consisting of 644 men and 577
women, with 350 families. The majority of the population is Muslim 99.4 . Supporting infrastructure development in this region were educational facilities consisted of one Elementary School, one Junior High
School and one Senior High School. Places of worship was consisted of 4 mosques, 5 praying house, and 1 church. There was health facilities with one midwife, and the economic supporting service facilities
consisted of 23 retail shoping house. Transportation sevices was taken care by sea transportation consisted of armpit
ketek
, boat and
motor rivers
, while rural transportation was taken care by bicycles, motorcycles, cars, and traditional transportation such as
gerobak
or modified special car for local and intern transportation in plantation area.
Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013
Palembang, South Sumatra -Indonesia, 24-25 October,2013
29
4.2 . Potency and Institutional Performance at SISKA Area
Potential and development of SISKA research area could be seen by performance of the of oil palm plantations PT Agro Andira, performance of Cooperatives Institution and perperomance of farmer groups.
4.2.1. Performance of PT Agro Andira
PT Agro Andira was an oil palm plantation company, located in
Dusun
Teluk Naning, Karang Anyar Village, Muara Padang District of Banyuasin Regency, South Sumatra. The company was initiated to
construct at 1995 with a land area of 21,750 m² and building area of 345 m². The core plantation area of PT Agro Andira was 5033.85 hectares, while the area of plantation society namely
plasma
was about 4,000 ha. In addition business of oil palm cultivation, the company of PT Andira Agro was also developing the beef
cattle husbandry business.
4.2.2. The Partnership of PT Andira Agro with The Farmer’s
Plasma
Implementation of the partnerships was aimed to solve the limitations of capital, lack of technology, marketing guarantee, increase the farmers income, and also had benefited others in partnership. The greatest
souerce of motivation for farmers to participate in the partnership was assured marketing, provided seeds, fertilizers, pesticides, coaching or companion, and the types of high productivity plants. Knowledge of
farmers was also determine how to accept innovation partnership that will be implemented, of course, it was espected the benefit from the partnership. According to Purnaningsih 2006, the knowledge of the
partnership consisted of the type of plants, cultivation techniques, the parties and characteristics of partner, partnership rules or procedures, and sanctions implementation.
The partnership between PT Andira Agro with farmers are partnering of Nucleus-Plasma. Plasma plantation that joint to the partnership PT Andira Agro consisted of five villages with four
transmigration
villages namely
Kumbang Padang
village,
Sido Makmur
village,
Tirta Makmur
village and
Panca Mulya
village, and one local resident village namely Karang Anyar village. The main requisite for farmers is an honest, reliable, able to work in the team, providing land, and are willing to sign the partnership agreement.
While PT Agro Andira as core provides the means of production seeds, fertilizers, pesticides, capital, technology and marketing of products ensures crops. The early farmers clearing land was on 2001. The
capital lent to farmers was issued on 2002 by PT Andira Agro, and on 2007 was issued bythe Bank, the amount of Rp 52,000,000.00, respectively, per farmer for clearing land area of 2 hectares.
The farmer groups
plasma
of PT Andira Agro was grouped by plantation based plots. There are 13 farmer groups with the members about 26-30 people per group. Farmer groups regularly hold meeting at least once
a month, to provide input and solve problems. They implemented the custom habit that the plantation was managed by the groups management, where the nature of mutual helping was running well. The partnership
of farmer groups with PT Agro Andira was also running well. The production of TBS original palm oil fruit of farmers groups plantation was as much as 2-3 tons per month per heactares, with an average price of
USD 1300.00, including transportation costs as much as USD 45.00 per kg. Income earned by farmers yield per plantation plot was about Rp 2,000,000.00 - Rp 3.500.000.00.
4.3. Individual Characteristics of
Plasma
Farmer Oil Palm Plantation
Majority of respondents farmers were migrants from Java Island. Respondents aged was 31-69 years with an average of 44.8 years. Most 66.7 of them had a formal elementary school, 73.7 experienced
on palm farming more than 11 years, and all respondents 100 had the plantation land of 2 ha, but they never had experienced beef cattle husbandry business. Most of the oil palm production 70 at low
katagori 30 -36 tonnesyear, and most of the revenue 60 was in moderate category Rp 38.75 million to Rp 44,192,983. The results show that allocation of working time for farming businesss of oil palm is low,
namely 41.04 person-days per year for family working time alocation and 54.00 person-days per year for the outside family working time alocation. It means that there are a lot of free time that could be used for
other activities. It is a high potential for development of SISKA program, where the remain working time of farmers could be used for beef cattle husbandry business.
Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013
Palembang, South Sumatra -Indonesia, 24-25 October,2013
30
4.4. Institutional Performance
Institutional performance related to SISKA program consisted of Cooperative performance and Farmer groups performance. PT. Andira Agro have 5 Village Unit Cooperative KUD, namely the KUD Permata
established in 2000 with 350 members, KUD Sumber Makmur Jaya, Jaya KUD Kumbang Jaya initiated on 1998 with 375 members, KUD Subur Mulia and KUD Restu Ilahi. This intitution KUD was acting as
the link between farmers and company. The KUD of PT Andira Agro is also quite active and positive influence to farmers and companies. The KUD itself was also over shadowed some farmer groups.
4.4.1. Cooperative Performance The performance aspect was included organizational management, and quality management. The results
showed that there are high- performance criteria organizations, both from the aspects of organization and management. Aspects of the organization was consisted of the establishment the structure, the presence of
members at meetings, and tasks distribution. From the aspect of the organization, it was showed that most 76.6 of respondents said the formation of the structure has been done and speciafied, the presence of
members exceeds qourum, and the existing tasks distribution was done systematicaly and well-executed. The management aspects was consisted of the meeting implementation, the principal books, supporting book,
work plans, and cooperation with other groups. Achievement scores of each indicator both aspects was stated in Table 1.
Table 1. Permata Cooperative Institutional Performance VariabelIndicators
Frequency of resp.answer Average score
Criteria 1
2 3
Organization management 1.Formation of structure
2.Member presence 3.Task distribution
7 14
23 16
30 8,30
2,77 2,53
3,00 High
High High
High
Administrative 1. Meeting
2. Basic bookmanual 3. Supporting bookmanual
4. WorkAction plan 5. Own toolmeans
Total performance organization
28 4
2 30
30 26
30 13,93
2,07 3,0
3,0 2,87
3,0 22,23
High High
High High
High High
High
Description score: 1,00
–
1.66 = low, 1,67
–
2,33 = medium, 2,34
–
3,00 = high
4.4.2 . Potential and Performance Famer Groups Institutional There were 13 farmer groups from
Kumbang Padang Permata
village in partnership with PT Andira Agro. All of the groups was formed by the farmer community, high levels of partisipation active, and
willingness to be a member of the group. These conditions indicate the existence of a high potential to develop the farmer groups as a unit of production and learning among members of the groups.
Farmer groups institutional performance was measured from the aspects of organizational management and administration. The result showed that there are high criteria for management aspects of the
organization. It was means that there were exiting distribution task regularly among farmer in the group, good deal of task, adequate sharing idea contribution. Aspects of administrative management was stated on
medium criteria, which was shown by the monthly meeting, the lack of basic books, lack of owned facilities own, and sistematically the work plan running. Those description was detailed in Table 2.
Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013
Palembang, South Sumatra -Indonesia, 24-25 October,2013
31 Table 2. Farmer Groups Institutional Performance
VariabelIndicators Frequency of resp.answer
Average score Criteria
1 2
3
Organization Management 1.Taskworking distribution
2.Commitmentdeal of task-working 3.Idea contribution
9 15
30 21
15 8,17
3,00 2,70
2,47 High
High High
High
Administrative 1. Meeting
2. Basic bookmanual 3. Supporting bookmanual
4. WorkAction plan 5. Own toolmeans
Total farmer groups performance
28 28
30 2
1 4
29 26
2
10,17 2,00
1.07 2,97
2,87 1,13
18,34
High Medium
Low High
High Low
Medium
Description score: 1,00
–
1.66 = low, 1,67
–
2,33 = medium, 2,34
–
3,00 = high
4.4.3.Farmers Perception on SISKA Program Potential SISKA program development could also be viewed from the perception of farmers on SISKA
program, which was measured from few indicators, namely the favorability of Siska program existence, aplicability, and motivation to implement Siska. The results showed that the farmers perception of Siska
program was categorized on high criteria. This is demonstrated by the majority of respondents stated that the existence SISKA Program was favorable, the technology can be applied, and can increase the revenue
because of utilization the palm oil waste. This result was supported by Bangun 2010 which showed that SISKA could increase the farmers income
[10]
.
The other research concluded that SISKA was feasible and potential to be developed both from of economic and non-economic aspect
[11]
.
5. Conclusion
1. Socio-economic conditions of farmers was potential for SISKA program development.
2. Cooperative Institutional Performance
Permata
cooperatives was stated on high criteria. 3.
Farmer group institutional performance was stated on medium category. 4.
Farmers perceptions of SISKA program was stated on positive values.
6. References
[1] Uphoff, N. 1986. Local Institutional Development: An Analytical Sourcebook With Cases . Kumarian Press . [2] Syahyuti. 2003. Bedah konsep Kelembagaan: strategi pengembangan dan penerapannya dalam Penelitian
Pertanian. Pusat Penelitian dan Pengembangan Sosial Ekonomi Pertanian. Bogor.
[3] North, Douglass C .2005. Institutional Economics. httpnobelprice.orgeconomiclaureates1993north- lecture.html.27 April. 2005.
[4] Robin, L., 2005. Institutional Economic. http:www.msu.edu.userschimd bromeley.htm . October 25, 2005. [5] Decree of Minister of Agriculture Number: 273KptsOT.196042007. Jakarta.
[6] Suradisastra , K., 2008. Strategi Pemberdayaan Petani. Forum Agro-Ekonomi, Vol.262. PSE-KP. Hal .82-91. [7] Ostrom , E. 2006. The Institutional Analysis and development framework in historical perspective. Presentation
paper . Workshop in Political Theory and Policy Analysis . USA : Indiana Univercity , Bloomington [8] World Bank, 2005b. Social Capital , Empowermwnt , and Community Driven Development .
http:info.worldbank.orgetoolsPresentationview , asp ? PID = 936 EI D = 482 , May 11, 2005 [9] Purnaningsih, N. 2006. Adopsi Inovasi Pola Kemitraan Agribisnis Sayuran di Provinsi Jawa Barat. Disertasi pada
Program Studi Ilmu Penyuluhan Pembangunan Sekolah Pasca Sarjana , Institut Pertanian Bogor. [10] Bangun, R.2010. Pengembangan Sistem Integrasi Sapi dalam Peningkatan Pendapatan Petani di Provinsi Riau.
Jurnal Teroka Vol 10 No. 2 Agustus 2010.
Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013
Palembang, South Sumatra -Indonesia, 24-25 October,2013
32
Dynamic Supply Response of Rice in Jambi Province
Edison
1+
1
Department of Agricultural Economics, Jambi University, Indonesia
Abstract.
Alternative specifications of model of supply response of Jambi rice crop and their economic implications are considered in terms of the existences and nature of production lags, and the choice between
expected price and gross returns as the preferred explanatory of producer‘s response to changing economic condition. The analysis indicates that there are lags which are due primarily to the difficulties and cost of
rapid adjustment rather than to the time required to revise expectations. The statistical results were similar for the alternative specification of gross margins and prices as the economic decision available. However, the
price elasticities derived using the gross margins specification were about a third of those using the prices specification. The gross margin specification yielded additional information in the form of yield and input
cost elasticities.
Keywords:
DynamicSupply response, Production response, Rice, Jambi Province
1. Background
