Abstract
Over the past 10 years, cassava imports in the form of semi-finished products have tended to increase. This study aims to analyze the comparative advantages and competitive advantages of fresh cassava at the farming and processed cassava level in the processing industry. The research used secondary data covering 2.595 cassava farmers in all provinces in Indonesia obtained from Agricultural Census 2013 - Central Bureau of Statistics (BPS), while data on the cassava processing industry was obtained from the publication of Bank Indonesia. The Policy Analysis Matrix (PAM) method was used to measure cassava's comparative and competitive advantages and further analyzed based on the technical efficiency score of the farm allegedly by the Data Envelopment Analysis (DEA) method. Results from PAM Analysis showed that Indonesian cassava products both in the farming and processing industry levels were not competitive. The technical efficiency of cassava production becomes the determinant of competitiveness the more efficient the production at the farm level, the competitiveness of cassava the higher. The competitiveness of the cassava processing industry is determined by the government's intervention in the price of cassava. The cassava processing industry pays for raw materials higher than it should. The implications of this study are to improve the competitiveness of Indonesian cassava products need to increase the efficiency of cassava farming production and government policies related to the selling price of fresh cassava to protect farmers and the cassava processing industry. Keywords: competitiveness, policy analysis matrix, technical efficiency, cassava
Highlights
Indonesia is one of the five largest cassava-producing countries in the world
A positive private profit value indicated that cassava farming was indicated to obtain a sub-normal rate of return, or in other words, it was financially feasible to run with government policies
The negative value of private profits in this study indicated that the cassava processing industry was indicated to obtain a subnormal rate of return, or in other words, it was not financially feasible to run even though there had been government intervention through policy
Summary
Indonesia is one of the five largest cassava-producing countries in the world. Four other countries are the largest producers of cassava globally, namely Nigeria, Thailand, Brazil, and Congo (FAOSTAT, 2019). Indonesian cassava imports (20092018) tend to increase by around 24.95% per year. The decline in production was largely due to a sharp decline in the harvested area for cassava, namely -4.2% per year. The productivity of Indonesian cassava tended to increase with an average increase of 3.58% per year. Compared to Thailand, Thailand’s cassava production was higher than Indonesia’s cassava production and tended to increase by 3.58% per year. The increase in cassava production in Thailand was due to an increase in harvested area (1.74% per year). The productivity of Thai cassava was lower than the productivity of Indonesian cassava (FAOSTAT, 2018)
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