Does Soybean Production in Indonesia Still Have Competitiveness Advantages? A Policy Analysis Matrix Approach Balai Besar Pengkajian dan Pengembangan Teknologi Pertanian, Indonesian Agency for Agricultural Research and Development, Jl. Tentara Pelajar 10 Cimanggu, Bogor Jawa Barat, 16114, Indonesia Abstract The soybean production in Indonesia still faces several challenges causing production depended on import supplies. This paper aims to assess the competitiveness advantages of soybean production in the current phase. Policy Analysis Matrix (PAM) was used to examine its competitiveness using secondary data and deliberating results of previous studies. The results of the study in 2015 showed that domestic production still could afford private and social prices, which constituted 73,684 IDR/ha and 1,013,939 IDR/ha, respectively. Soybean production almost did not show competitiveness advantages reflected from the ratio of DRC by 0.90 and PCR by 0.994 respectively. Government interventions brought various impacts. NPCI was 0.733 indicating that farmers paid cheaper inputs by 26.67% whilst NPCO was 0.991 demonstrating inefficiency of government policy towards the output. EPC was 1.03 whilst PC is close to zero (0.06), which pointed out insufficient government policy to assure profit in the long term. SRP was minus 0.08 described that the government not all farmers received a benefit from the government policy. The sensitivity analysis resulted: (i) the combination of increasing soybean price + procurement price at 8,000 IDR/kg and (ii) the increasing import tariff by 5% + procurement price at 8,000 IDR/kg provided the most favourable impacts. Keywords: soybean production, policy analysis matrix, competitiveness, government intervension Topic: Sustainable Agriculture and Rural Development |
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