Analysis of competitiveness of lowland rice farming in indonesia: Case study of Bolaang Mongondow District, North Sulawesi Province

Abstract

Further development through the application of technological innovations may result to rice export in North Sulawesi. It is necessary to do a study on the competitiveness level of this commodity, especially if there is a local policy to export rice. The aims of this research are: (1) to analyze the profitability of rice farming in Bolaang Mongondow District; (2) to analyze the comparative and competitive advantages of rice farming in Bolaang Mongondow District; (3) to analyze the impact of government policy on competitiveness of rice farming in Bolaang Mongondow District. Primary data were collected from 100 rice farmers. Data obtained was analyzed using policy analysis matrix (PAM). The results revealed that private and social profitability of rice farming are IDR 3,870,106 and IDR 3,493,646, respectively. Private cost ratio of rice farming was 0.69. Domestic resources cost ratio of rice farming was 0.68. The output transfer and nominal protection coefficient output indicated that the total value of input was 7% higher than the social price. The transfer input, nominal protection coefficient on input and transfer factor indicated that there is a protective policy to input tradable and non tradable producers. The results of effective protection coefficient, net transfer, profitability coefficient and subsidy ratio to producers of rice were 1.16, IDR 376,460.51, 1.11 and 0.03. Conclusively, rice commodities in Bolaang Mongondow have comparative and competitive advantages. In addition, the government policies of rice were protecting and beneficial to farmers in Bolaang Mongondow District of North Sulawesi Province.   Key words: Comparative and competitive advantages, rice farming, policy analysis matrix (PAM).