Organization of study The Price Transmission in Rice Market Chain in Indonesia
Table 1 shows that rice production has constant trend for 2000-2012 period. The rice production in 2012 is 32,17 higher than in 2000. Even though the rice
production increase, the consumption of rice increase higher. Therefore there is a gap between rice production and rice consumption. This gap is compensated by
importing rice from world market. Indonesia has been importing rice from Thailand and Vietnam since the 1998 crisis. The rice import of Indonesia since
2000 to 2012 has a declining trend. Even in the period of crisis in 2007-2010, Indonesia imported less than 0,5 MT.
Figure 3 Indonesian Rice Import in 2000-2012 Source: FAS USDA 2000-2012
The Indonesian rice production increases steadily because the harvested area also grow steadily. In 12 years the harvested area only increase 13,97 and the
national average for yield also not really significant increase. The yield in 2012 is still at 5,1 tonha, it is under the ideal yield at 8 tonha. The lack of harvested area
needs the enhancement of yield to compensate it. The enhancement of yield still difficult for Indonesia, there are still many problem to be solved. The
encouragement of new technology to produce higher yield and more stable production along the year are needed. The extention program for farmers to use
new technology also needs to do continuously and massively to support the enhancement of yield and rice production in Indonesia.
0,000 0,500
1,000 1,500
2,000 2,500
3,000 3,500
4,000
imports
Table 1 Harvested area, production, and yield of rice in Indonesia in 2000-2012
Year Harvested Area
Ha Production
Ton Yield
TonHa 2000
11.793.475 51.898.852
4,40 2001
11.499.997 50.460.782
4,39 2002
11.521.166 51.489.694
4,47 2003
11.488.034 52.137.604
4,54 2004
11.922.974 54.088.468
4,54 2005
11.839.060 54.151.097
4,57 2006
11.786.430 54.454.937
4,62 2007
12.147.637 57.157.435
4,71 2008
12.327.425 60.325.925
4,89 2009
12.883.576 64.398.890
4,99 2010
13.253.450 66.469.394
5,02 2011
13.203.643 65.756.904
4,98 2012
13.440.940 68.594.067
5,10
Source: BPS 2012
The rice self-sufficiency of Indonesia always above 90, it means the domestic consumption needs almost can be met by domestic rice production.
More than half of the national rice production is contributed by Java Island as the most fertile land and the biggest farm labor forces. Java produces about 2,5 MT
per year or about 52 of the national rice production. The other islands like Sumatera, Sulawesi, Kalimantan, and Bali with Nusa Tenggara contribute 24,
11, 7, and 5 of the national rice production, respectively. The major rice producing areas are West Java, East Java, Central Java, South Sulawesi, and
North Sumatera. In other hand for the other islands such as Kalimantan, Papua, Maluku, and small islands are not suitable to be planted by paddy. They only
contribute by 1 of national production BPS 2012.
Table 2 Harvested area, production, and yield of paddy per province in 2011
Province Harvested area Ha
Production MT Yield
TonHa North Sumatera
757.194 3.611.244
4,77 South Sumatera
772.803 3.332.799
4,31 Subtotal Sumatera
3.418.891 15.654.258
4,58 West Java
1.959.686 11.467.516
5,85 Central Java
1.748.611 9.429.506
5,39 East Java
1.945.712 10.533.607
5,41 Subtotal Java
6.192.549 34.148.340
5,51 West Nusa Tenggara
416.079 2.056.879
4,94 Subtotal Bali Nusa
Tenggara 757.866
3.473.210 4,58
West Kalimantan 441.920
1.379.411 3,12
South Kalimantan 490.528
2.001.274 4,08
Subtotal Kalimantan 1.289.917
4.557.268 3,53
Central Sulawesi 216.174
1.023.720 4,74
South Sulawesi 907.555
4.514.849 4,97
Subtotal Sulawesi 1.491.480
7.267.672 4,87
Other provincesislands 73.676
284.435 3,86
Total Indonesia 13.224.379
65.385.183 4,94
Source: BPS 2012
In Indonesia with sun shines all year around, farmers can grow paddy three times a year. First crop season lasting from October to March, second crop from
April to August and third crop from August to December. The first crop produces the main harvest. It produces about 60-65 of total national rice production in a
year. The second crop produces about 25-30 and the third crop produces about 5-15 of total national rice production Ellis 1993 in Sari 2010. Farmers manage
their paddy cropping pattern adjusted with the availability of water. Paddy which is planted in Indonesia is wet type; it needs a lot of water for growing. Therefore
mostly all farmers growing their paddy in rainy season October-March. Whereas in the dry season not all farmers growing paddy, some of them growing