Sustainability of Post-Eruption Socio Economic Recovery for the Community on Mount Merapi Slope through Horticulture Agribusiness Region Development (Case Study in Boyolali District)

Abstract

Merapi eruption occurred in 2010 resulted in damage to a variety of community-owned assets on the Mount Merapi slope. Paralysis of profitable activity, further exacerbate the socio-economic conditions. Therefore, it is necessary to recover socio economic condition by optimizing the potential resources in there. One of them is the development of the horticulture agribusiness region. Agribusiness development of horticultural crop's purposes are to (1) stimulate the growth of geographical investment potential by involving all actors of agribusiness, government, farmers/agribusiness and private groups, (2) formulate a mutual work program between the groups in the central areas of agribusiness with other relevant parties on the joint development of a regional, integrated and sustainable. The study aimed to (1) determine the comparative advantage of selected horticultural commodities in Boyolali, (2) formulate the development effort selected commodities.Determination of commodities was conducted in stages, namely (1) the selection of candidates for local commodities through field observation and consultation with the Ministry of Agriculture, (2) the determination of selected commodities by the Policy Analysis Matrix (PAM). The method was used to analyze the comparative advantage of a commodity in terms of the resources used to produce these commodities, the resulting output, the prevailing economic policies and market distortions that occur.Carrot and chili have comparative advantage and can be developed further to secure the future of community on Mount Merapi slope. The non-tradeable inputs have been used efficiently and give added value to the farmers.Domestic demand of carrot and chili were more profitable provided by domestic production rather than import.Farmers received prices of carrot and chili lower than they should. Carrot and chili farmers did not get product price protection. Both carrot and chili farming have not received adequate protection.