SHALLOTS PRICE PARADIGM IN INDONESIA AND ITS INFLUENCED FACTORS

Abstract

Shallot is a horticultural commodity that, although it is minor, works as a culinary flavor enhancer in Indonesia. The fluctuations and dynamics of shallot prices contribute to the inflation rate in the Republic of Indonesia. Consequently, the government includes this commodity in the national strategic food group. This study aims to examine the factors that influence the dynamics of shallot prices in Indonesia. It analyzes the causes and provides alternative solutions to stabilize the shallot price. This research is a systematic literature review, which utilizes secondary data available on government information/data websites and several supporting articles. It used descriptive and explanatory methods to analyze the qualitative and quantitative components. The research also used the statistical regression methods, anova by Excel, and R software as differential analysis. This study shows that the most significant factors in determining shallot price are trade margin and transportation margin. Meanwhile, production factors have almost no effect regionally. The consumption factor and the length of the supply chain considerably affect certain areas. Expansion of the planting area, especially in the northern part of Indonesia, can be used as a complementary means to meet the demand for shallots on an ongoing basis. This research is a compilation of advanced analyses of reports on the performance of departments in the government of the Republic of Indonesia, taking into account and referring to the results of research by other academics.