Effective management system of rice processing industry in Indonesia

Abstract

Unbalance ratio between rice plant area and number of rice milling unit causes tight business competition on its business so it has low productivity and profitability.Measures for enhancing productivity need to be taken. There are some similarity situations between Indonesia and Korea related to rice consumption and industry. Objectives of this study are to conduct comparative study between Indonesian and Korean rice industry and arrange recommendations about providing stable paddy supply for the rice processing industry in Indonesia. Methodologyof the study are discussion, field observation, data analysis, and arrange recommendations. The results showed that Indonesian Government and Korean Government have different structure on rice processing industry. Therefore, Indonesian Government and Korean Government enacted different policies priority on strengthening and fostering rice processing industry.Based on lesson learn from Korean experiences, some recommendations for sustainable paddy supply for the rice processing industry in Indonesia are Indonesian Government should improve postharvest system and management on rice processing, to revitalize agriculture cooperative, and to conduct business networking among rice processing industries to reduce competition in the rice business.