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ESTIMATION OF TECHNICAL EFFICIENCY OF RED CHILI FARMING ON JAVA AND OUTSIDE JAVA, INDONESIA: A STOCHASTIC FRONTIER PRODUCTION APPROACH Nurmalita, Ika; Fariyanti, Anna; Novianti, Tanti
Agric Vol. 36 No. 2 (2024)
Publisher : Fakultas Pertanian dan Bisnis, Universitas Kristen Satya Wacana

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24246/agric.2024.v36.i2.p231-250

Abstract

The supply of red chili in various regions in Indonesia still relies on production from Java. Different uses of production factors are insufficient to overcome production gap between Java and other regions, so measuring other factors is required. This study aims to analyze the factors affecting red chili production, identify the technical efficiency level of red chili, and analyze factors affecting the technical efficiency of red chili in Java and outside Java. This study used data from the 2013 Agricultural Census (ST2013) and the 2014 Horticultural Crop Farming Household Survey from the Central Statistics Agency (BPS). The SFA (Stochastic Frontier Analysis) method was applied to estimate the technical efficiency levels and the factors influencing it. The results revealed that factors such as seeds, harvest area, N-fertilizer, K-fertilizer, manure, pesticides, and labor affect red chili production in Java. Outside Java, the influencing factors are seeds, harvest area, N-fertilizer, P-fertilizer, manure, pesticides, and labor. The technical efficiency of red chili in Java (0.640) is lower than outside Java (0.691), indicating outside Java more technically efficient than Java. The significant factors affecting the technical efficiency of red chili farming in Java include education, participation in farmer groups, participation in cooperatives, land type, growing season, subsidies, technology, certified seeds, and access to credit. Conversely, outside Java, only cooperative participation, land type, growing season, and technology have a significant impact. Assistance in using subsidized inputs and access to credit in Java and the development of cooperative institutions outside Java are policies that can be taken.
Efisiensi Teknis Cabai Merah di Indonesia Nurmalita, Ika; Fariyanti, Anna; Novianti, Tanti
Forum Agribisnis Vol. 15 No. 1 (2025): FA VOL 15 NO 1 MARET 2025
Publisher : Magister Science of Agribusiness, Department of Agribusiness, FEM-IPB University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29244/fagb.15.1.1-11

Abstract

There is a disparity in red chili production between actual and potential which causes the available supply to be inadequate to cover the high demand. Production problems could not only be identified through production factors but also other factors that contribute to the issue. Technical efficiency is an analytical method that measuring production factors and out-of-production factors simultaneously. This study aims to measure the level of technical efficiency of red chili farming, to analyze the factors that influence red chili production, and to analyze the factors that influence the technical efficiency of red chili farming. This study employs secondary data from the 2013 Agricultural Census Results of the 2014 Horticultural Crop Farming Household Subsector Survey (ST2013 SHR), Central Bureau of Statistics (BPS). Stochastic Frontier Analysis (SFA) is a method of estimating the level of technical efficiency of red chili farming and the factors that affect it. The results revealed that the average level of technical efficiency of Indonesian red chili farms was 0.6525. This level implies that Indonesian red chili farms still have the opportunity to be improved. Seeds, N-element fertilizers, P-element fertilizers, manures, pesticides and labor are factors that can affect red chili production. Education, technologies, participation in farmer groups, planting seasons, land types, cropping systems and certified seeds are factors that can raise the technical efficiency of red chili farming while access to credit and subsidies can reduce the technical efficiency of red chili farming. Assistance in the use of subsidies and credit is a policy the government could take in enhancing the technical efficiency of Indonesian red chili farms besides the technology use and dry season planting.