To Output Keunggulan Komparatif dan Kompetitif Industri Feedlot Indonesia

is positive, then government subsidy to output sector wiped off the overall impact of tax to inputs and the government subsidy to input, vice versa. - Effective Protection Coefficient EPC EPC reflects the impact of policies to value added Edwards and Jacque, 2007. It compares the value added measure at the private price and social price. It is written as: EPC = �� � − � �� − Thus, if: EPC 1: Both tradable input and output are protected by policy and give incentives to producer. The value added created in actual price is higher than the social price. EPC 1: Both tradable input and output are not protected by policy and give disincentives to producer. The value added created by feedlots under government policy is lower than the value added created without government policy. - Profitability Coefficient PC PC is the expansion of EPC which taken into account the domestic factor cost. The ratio of private and social profitability is the indicator of overall transfers to private profit. It is written as: PC = П � П Thus, if: PC 1: feedlots gain greater private profit than its social profit PC 1: feedlots gain smaller private profit than its social profit - Subsidy Ratio to Producer SRP SRP reflect the effect of transfers to the revenue level which obtain by comparing the net transfer to output’s value in efficiency price. It is written as: SRP = П �� Thus, if: SRP 1: feedlot pays higher production cost than they should have without policy SRP 1: feedlot pays lower production cost than they should have without policy Sensitivity Analysis and Policy Scenario Government has set several policies to promote competitive and comparative advantage of Indonesian feedlot industry. The assessment of policy impact to input and output in the previous part only consider general policies that have been applied. However, to take a look whether specific policies are affecting the competitiveness indicator, policy scenario were set. The first policy scenario is to observe the change in competitiveness if there is abolishment of 5 percent import tariff on feeder cattle and beef import. Thus, if this border protection is removed, the prices of imported feeder cattle and beef theoretically below the domestic price and have an impact to competitiveness of Indonesian feedlot. The second assessment is to examine the change in feeder cattle population as the impact of quota policy. As the part of sufficiency program, the government gradually decreases the import quota of feeder cattle and beef. In 2011, the quota for feeder cattle is 600.000 head and 93.000 tons for beef. This huge reduction of feeder cattle import decrease the number of cattle raised in feedlot down to 25-30 percent of the initial population because the substitution stock from the local feeder cattle are insufficient. As a consequence, the competitiveness of Indonesian feedlot is hypothetically reduced. The measurement of the feedlot budget were initially in IDR per cattle, but the impact were invisible. Therefore, the total cost for all feedlots in a province were measured collectively. Nevertheless the adjustment of competitive and comparative advantage indicator were all set at the constant price, in practice, the prices are changing. As follows, the change in price might leads to the stimulation or depression of cost effectiveness of the feedlot. Thus, with the uncertain impact of price changing to the variables, the sensitivity analysis is employed. The first analysis is to assess the 10 percent change of the feeder cattle CIF price and exchange rate of Indonesian Rupiah to US Dollar. As Indonesia still imported some of the feeder cattle for foreign country, the input price change are believed to affect production costs and profitability. Further, concerning that the price of feeder cattle are on USD based, the devaluation of rupiah will hypothetically influence the purchasing power of the importer or producer. In other words, the producers pay more of Indonesian rupiah for each dollar of feeder cattle price. As follows, the comparative advantage might be affected. 6 RESULTS Characteristic of Feedlot Feedlot size The beef finishing feedlot firms is being the subject in this study. The firm size is measured according to its cattle number owned. From Table 8, we can conclude that in Banten has the highest number of feedlot with bigger herd size. West Java and Lampung are characterized by firms with less than 5.000 cattle. Table 8. Number of firms according to cattle ownership Cattle Ownership Banten Lampung West Java 5000 8 6 25 5000 - 10.000 10000 4 1 3 Total 12 7 28 Education Level The education level will leads to productivity rate. Most of the feedlots, especially in Banten and West Java, have workers that earn a bachelor degree in Animal Husbandry and Veterinary. Though, Table 9 shows that feedlot in the three provinces is dominated with workers equipped with standard education. The unit value is person.