Competitiveness effect of the UPSUS Program on rice production in West Java Province, Indonesia

Abstract

The sustainability of rice self-sufficiency and export are expected from the implementation of the UPSUS Program on rice and the attention to the issues affecting the rice competitiveness become very important. Using rice farm household survey data, the study employed the Policy Analysis Matrix (PAM) and Kernel Density Estimation method of analysis. The study aimed to analyse the effects of the UPSUS Program on the global competitiveness of rice production and estimate the proportion of rice farms that produce competitively and the proportion of the total production that is produced competitively from the implementation of the UPSUS Program in West Java. Rice farming in the study sites was both financially and economically profitable before and after the implementation of the UPSUS Program and showed a slight decline in competitive and comparative advantages after the program. In 2020-2025, to increase rice competitiveness and achieving the target, the government should: (1) Maintain the area of rice planting and give more focus on higher productivity target; (2) Improve the adequacy and effectiveness of the various components of the program; and (3) Improve the provision of other services outside the program components that affect competitiveness of rice production.