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).
Highlights
Indonesia is a country with a large population in the world
Primary data were obtained from interviews with the farmers, traders at villages and Sub-districts level, while the secondary data were obtained from BPS office of North Sulawesi and Bolaang Mongondow, office of Agriculture and Livestock in Bolaang Mongondow, office of Trades and Industry, Customs office, PELINDO and data searching via internet
3,870,106 / year and the RC-ratio was 1.39, while the economic net income of IDR 5,164,095 / year and the RC-ratio was 1.68. If it includes land component, net profit was IDR 3,446,567 / year and the RC-ratio was 1.37. This implies that rice farming is financially better off than economically
Summary
Indonesia is a country with a large population in the world. Indonesia's population in 2011 is estimated to be 241 million people. The level of rice consumption was up to 139 kg per capita higher than Malaysia and Thailand which was only 65 to 70 kg per capita per year Int. Finance to be the main agricultural commodity in Indonesia. The government has always issued a policy of national rice management
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