Policy and Competitiveness of Integrated Agricultural-Based technology for Cocoa Production in Indonesia: Application of a Policy Analysis Matrix

Abstract

Purpose: The research aimed to evaluate the competitiveness of smallholder cocoa plantations and the efficiency of input use in cocoa farming by strengthening farmer groups Indonesia. Theoretical framework: The research design includes the steps taken in conducting research, data sources, and how to obtain data and data analysis. The research clearly describes the variables, data collection, and data analysis methods to have a clear picture of the competitiveness of cocoa farming. Design/methodology/approach : Measuring the competitiveness of cocoa in Bali using the Policy Analysis Matrix (PAM) method. PAM analysis is used to calculate private profit, which is a measure of farm competitiveness at the market price level or the actual price Findings: Competitiveness at the social price level is placed on the second row of the PAM table, Indonesia is an agricultural country and the development of the main agricultural sector, especially cocoa commodities which are managed through community plantations in rural areas, shows the ability to be comparatively competitive, even competitive, even though some components such as private farmer profits can be achieved at 69% compared to what cocoa farmers should receive. Farmers can receive social benefits of up to 40%. Even though cocoa production receives output subsidies, cocoa farmers are only able to obtain a price of 79%, or 21% lower than the world cocoa price, but it is still competitively profitable for farmers. The inputs needed by farmers in cocoa production can be managed by farmers so that the price of tradable inputs at the farmer level shows the same price at the economic level so that it is said to have comparative and competitive competitiveness. Research, Practical & Social implications: Competitive cocoa in Indonesia provides benefits to farmers at small-scale plantations of up to 69 %, and the profits received by farmers are 40% when measured comparatively. Originality/value: Originality/Value: This research is original. Implemented in smallholder cocoa plantations in Indonesia with integrated crop-livestock farming patterns to produce outputs that can compete at social prices and to motivate other cocoa farmers to develop farming system innovations that can increase cocoa production based on local resources.