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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

The rising price of red chili is associated with the production availability at the farm level. Meanwhile, the price increase has not been sufficient to impact on farmers' income positively. Production problems can not only be explained through production factors but other factors also contribute. Technical efficiency is an analytical method that measures production factors and external factors directly. Spatial measurement may lead to policy bias. Therefore, this study aims to measure and analyze the factors that affect the level of technical efficiency of Indonesian red chili. This study applied the Stochastic Frontier Analysis (SFA) method to measure and analyze the factors affecting the technical efficiency of Indonesian red chili. All production inputs, including seeds, chemical fertilizers, organic fertilizers, pesticides, labor, and harvest areas, affect the improvement of Indonesian red chili production. Inefficiency factors that can increase the level of technical efficiency of red chili are education, technology, farmer groups, planting season, land type, cropping system, and the utilization of certified seeds. While access to credit, cooperative membership, and subsidies can reduce the level of technical efficiency of Indonesian red chili. The average technical efficiency level of Indonesian red chili is 0,6525. A reassessment of subsidy policies and access to credit and development of agricultural institutions are possible policies that could be considered by the government to improve the production and technical efficiency level of Indonesian red chili.