Analysis of Garlic Commodity Competitiveness and Impact of Government Policy in Indonesia

Saptana Saptana,Atika Dyah Perwita,Syahrul Ganda Sukmaya,M Senge,M.F Kamarudin,A.A Aziz,Triyono Triyono,Z Rozaki,M.M Tjale

doi:10.1051/e3sconf/202131602016

Saptana Saptana, Atika Dyah Perwita + Show 7 more

Open Access

https://doi.org/10.1051/e3sconf/202131602016

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Abstract

Indonesia's government is currently developing garlic commodities in several areas of highland dry land production centres to reduce dependence on imports (94%) from domestic needs. This paper aims to: (1) analyse the benefits of garlic farming financially (private) and economically (social); (2) analyse the competitiveness of garlic farming, both from the perspective of competitive advantage and comparative advantage; (3) review the impact of government policy on garlic farming system; and (4) formulate incentive policies in garlic development. The analysis method was conducted using the Policy Analysis Matrix (PAM) to see Indonesian garlic's competitive position globally. The study area includes Cianjur Regency, West Java; Karang Anyar, Central Java; Pasuruan, East Java; and East Lombok, West Nusa Tenggara. The analysis results showed that garlic farming is financially profitable, but economically less profitable or not profitable. Garlic farming has a competitive advantage but less or no comparative advantage. The value of DRCR >1 shows that Indonesia does not have a comparative advantage in producing garlic. The policy implication is that if Indonesia continues to reduce dependence on imported garlic, it will require breakthroughs in advanced innovation, integrated regional development, agricultural infrastructure support, institutional strengthening of farmers, and farmers' incentive policies.

Highlights

1.1 Research BackgroundGarlic commodity (Allium sativum L.) is one of the vegetable commodities that serve as a cooking seasoning that cannot be substituted with other seasoning products
Based on the analysis of costs and financial benefits shows that garlic farming in the dry land highlands in Indonesia is still profitable, most of which is only cultivated in the dry season, such as in Karanganyar, Central Java; Pasuruan, East Java; and East Lombok, West Nusa Tenggara
The highest private profit of garlic farming was found in Karanganyar Regency in the dry season with a profit in the dry season of IDR 50,788,316,/ha/season, while the lowest profit found in Cianjur Regency only provided a profit of IDR 17,640,412/ha/season in the wet season

Summary

Introduction

1.1 Research BackgroundGarlic commodity (Allium sativum L.) is one of the vegetable commodities that serve as a cooking seasoning that cannot be substituted with other seasoning products. The Indonesian government is promoting an increase in domestic garlic production to increase dependence on imports reaching 472.92 thousand tons (94%) domestic needs [1]. The total production of garlic in 2019 amounted to 88,817 tons, and the estimated consumption of garlic in 2020 amounted to 498.94 thousand tons [1]. In 2020, the deficit in garlic availability reached 393.65 thousand tons and increased in 2021, the deficit of garlic supply reached 408.02 thousand tons. A considerable shortage of garlic supply from year to year is met through imports from China, India, Taiwan, and the United States [1]

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