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Rice production in Indonesia: policy and performance

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  • Joko Mariyono

Abstract

Rice is a politically strategic commodity in Indonesia. The government seeks to ensure that rice production meets the needs of domestic consumption and, accordingly, is interested in its performance as a matter of considerable policy significance. This study addresses its performance in accordance with several determining factors, underlying which is the concept of technical efficiency. Panel aggregate data on input-output rice production in 23 provinces during 1993-2013 are employed for estimating frontier production functions. The results indicate that variation in rice production across regions of the country is due primarily to technical efficiency. Sources of variation within technical efficiency include intensification, training programmes, land fertility and local culture. Of the regions investigated, rice production in Bali has been the most efficient. Overall, efficiency of production is low and has marginally decreased over time in all regions. The study concludes that there is considerable room for productivity improvements through increases in efficiency. Training in relevant agricultural methods, the creation of wetlands, and an improvement in irrigation infrastructure are the best ways to enhance rice production.

Suggested Citation

  • Joko Mariyono, 2014. "Rice production in Indonesia: policy and performance," Asia Pacific Journal of Public Administration, Taylor & Francis Journals, vol. 36(2), pages 123-134, June.
    • Handle: RePEc:taf:rapaxx:v:36:y:2014:i:2:p:123-134
    DOI: 10.1080/23276665.2014.911489
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    Cited by:

    1. Khanal, Aditya & Koirala, Krishna & Regmi, Madhav, 2016. "Do Financial Constraints Affect Production Efficiency in Drought Prone Areas? A Case from Indonesian Rice Growers," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230087, Southern Agricultural Economics Association.
    2. Sacha Amaruzaman & Douglas K. Bardsley & Randy Stringer, 2023. "Analysing agricultural policy outcomes in the uplands of Indonesia: A multi‐dimensional sustainability assessment," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1937-1950, June.
    3. Girik Allo, Albertus & Sukartini, Ni Made & Widodo, Tri, 2017. "Dynamic Changes in Comparative Advantage of Indonesian Agricultural Products," MPRA Paper 80028, University Library of Munich, Germany.
    4. Grimm, Michael & Luck, Nathalie & Raya, Alia Bihrajihant & Sawhney, Udit, 2024. "Small-Scale Farmers' Willingness to Pay for Information: A Comparison of Individual Purchase Decisions with Contributions to a Club Good," IZA Discussion Papers 17472, Institute of Labor Economics (IZA).

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