REVEALED COMPARATIVE ADVANTAGE OF WATERMELON TRADE IN ASEAN 5 COUNTRIES

Watermelon Citrullus Lanatus (Thunb) is an important commercial fruit crop in ASEAN. One way to improve economic growth is through trade and comparative advantage. There are very some researches regarding with comparative advantage of watermelon trade in ASEAN. The purpose of this article is to determine the comparative advantage of watermelon trade in five ASEAN member countries. This article uses secondary data only. Watermelon trade data covering the six years period 2014-2019 were obtained from the United Nations Commodity Trade Statistics Database. This article applies the original index of the revealed comparative advantage (RCA) and revealed symmetric comparative advantage (RSCA) to find out the level of comparative advantage of watermelon commodity. Results show that Lao Peoples Democratic Republic, Myanmar and Viet Nam have a comparative advantage of watermelon trade in the global market. This study suggests that ASEAN 5 member nations should try to maintain its comparative advantage of watermelon exports in the international market.

Farmer Preference to High Elevation Rice Technological Packages for Accelerating Technological Dissemination (A case Study in Humbang Hasundutan Regency)

Accelerating the introduction of a new technological package is needed to increase the productivity of high elevation puddled rice in Humbang Hasundutan. The objectives of the study are to find out the perception of the existence of technological packages and farmers' preference for a new technological package. The study used a survey method with primary data gathered using questionnaires. The criteria of locations and respondents were used to obtain relevant respondents and data concerning their knowledge of high elevation puddled rice cultivation. The collected data were processed by using Importance Performance Analysis in order to find out the level of Importance and Satisfaction of the indicators and the valued aspects in the technological package components. The results of the study showed that the socio-economic aspects had to be heeded in organizing the technological package. Indicators having a high level of importance and a low level of satisfaction consisted of production cost, quality of seeds, farmer groups empowerment, technology information institution, capital cost, agricultural tools and machines, pest control, sales price, irrigation canals, and farm roads. On the other hand, introducing new superior seeds, productivity attribute and planting age were important indicators for local farmers as to improve the quality of existing seeds. Farmers group expected that the technological package had a high level of productivity, better access to input, low cost, and good user-friendliness in its application.

Asymmetric Information, Transaction Costs, and Farmers Decision To Participate In Tobacco Voor-Oogst Kasturi Contract Farming

Contracts participation between tobacco farmers and traders is still low even benefit of contract is huge. This is related to factors that affect to the contract, demographics, farm characteristic, and other related factors. Contracts that initially became a tool to prevent market failure because it regulates how economic actors act against other, turns out to cause transaction costs as a result of asymmetric information that makes the contract does not function ideally. Therefore, this study attempts to explain asymmetry information during the transfer product and the potential transaction costs incurred using the New Institutional Economy approach. Beside that, this study also attemps to explain factors that underlie farmers decision making partnership, that were analized by using the analyst logistic regression.Respondents in this study were 100 respondents, 50 tobacco contract farmers, and 50 independent farmers from December 2018 through January 2019. The results showed that asymmetric information caused adverse selection and moral hazard, as many as 30% farmers had sold products to other parties and 8% of farmers had used pesticides that prohibited by traders. Contracts that are not ideal due to asymmetric information must be re-enforced by using additional costs called transaction costs which are divided into three typess, namely search and information costs, cost to design, negotiate and conclude and the monitor and contract enforcement costs. Monitoring costs have the potential to absorb the largest portion compared to other types of transaction costs. The greater the asymmetric information generated, the greater the transaction costs incurred. Then the factors that significantly influence the decision making of tobacco farmers to partnership are long time farming experience, land size, risk aversion level, certainty of price and source of capital.

Decision-Making Process Of Corporate-Farming Innovation In Bantul Regency

Corporate farming is an agricultural innovation to answer narrow land tenure problems due to widespread land conversion and land fragmentation. The principle of corporate farming is land consolidation with one joint management. This research attempts to determine the decision-making process for corporate farming innovation in Bantul Regency, using an exploratory approach with the Social Network Analysis (SNA) method and ego-centered network analysis. The ego in this study is the innovator and chairman of the corporate farming team. The results of the study were presented in a sociogram using Pajek software. The actors involved in the corporate farming innovation decision-making process are the head of farmer groups, administrators, team leaders, member farmers, Bantul Regency Agricultural Service, local extension agents, and stakeholders including the Research Team of the UGM Faculty of Agriculture, Bank Indonesia Regional DIY, and BPTP DIY. The introduction stage was carried out in a farmer group meeting, and the UGM Faculty of Agriculture Research Team acts as the innovator. It is followed by the persuasion stage, which explains the benefits of implementing corporate farming during subsequent farmer group meetings. The decision stage is indicated by providing direction, assistance, and financial support, which relied on group agreement to commit corporate farming. The farmer groups’ heads dominated the persuasion stage, the decision stage, and the implementation stage. The differences between corporate farming and individual farming lie in some aspects, such as working together rather than individual work, semi-organic cultivation systems, and optimizing the use of agricultural machinery. At the confirmation stage, 62% of informants disagree to continue corporate farming due to significant drops in production yields. The change in the cultivation system from chemical to semi-organic is one reason for the decline in production.Keywords: corporate farming, ego-centered network, decision-making process, social network analysis

The Factors That Affect The Satisfaction of Local Coffee Shop Customers in The 4.0 Industry Era

Customer satisfaction is the opinion of consumers, in the form of the performance of a product or service that meets their expectations. Generally, successful businesses highly care about customer satisfaction as profit. Therefore, this study aims to analyze the effects of: (1) perceived quality, (2) price, (3) industrial application 4.0, and (4) products innovation on customer satisfaction in the local coffee shop business in the Special Region of Yogyakarta. The data were collected using online questionnaires sent through direct message on instagram account of each customer who posted a photo with a tag or a hashtag from one of the 31 local coffee shops whilst they were enjoying a cup of coffee drink. All customers had the same opportunity to be sampled according to a representative proportion at each local coffee shop. The determination of the minimum sample used was 165 respondents. The samples analyzed were 173 respondents collected from 450 questionnaires completed by customers in which only 176 questionnaires were returned, and three questionnaires happened to be outliers that needed to be eliminated. The data were analyzed using the Structural Equation Modeling (SEM) provided in the AMOS application. The results indicated that customer satisfaction was positively influenced by perceived quality, industry 4.0 implementation, and products innovation, while price negatively affected customer satisfaction. It is highly recommended to maintain and improve perceived quality, industry 4.0 implementation, products innovation, and consider in determining extremely crucial prices for the local coffee shops to acquire customer satisfaction.

Factor Analysis on Rice Product Labels as a Consideration for Consumer's Purchase Decision In Yogyakarta

Rice is one of the staple foods consumed by most Indonesians causes rice products to grow in line with consumer demand. As a widely consumed product, rice production labeling is a concern following the latest health issues. Labels are expected to provide useful information in determining products to be purchased by consumers, so it is necessary to know the information that consumers expect. This study aims to determine the attributes on the label that consumers consider when making purchasing decisions. The online questionnaire was filled in by 125 random respondents in Yogyakarta City and Sleman Regency, considering the current conditions (the Covid-19 pandemic). Determination of the factors taken into consideration using the Confirmatory Factor Analyze (CFA) method and appropriate statistical tools were used to analyze the data. The results showed that 74% of the respondents purchased labeled rice products in the last month. As many as 98.65% of respondents who bought labeled rice read the labels before making a purchase decision, and 78.38% considered labeling rice products important. Two factors are considered when making a purchasing decision: product specifications (price and production code) and product quality (organic labeling, net weight, nutritional content, BPOM registration number, and SNI label).

Determinant Factors of the Chrysanthemum Consumers’ Willingness to Pay: Case of Pasopati Cultivar

This study aims to: (1) determine the characteristics of chrysanthemum consumers in three cities in Java, namely Yogyakarta, Semarang and Surakarta, (2) compare the willingness to pay (WTP) of chrysanthemum consumers, especially Pasopati cultivar in the three cities, (3) analyze the determinant factors of the chrysanthemum consumers’ WTP. There is a total of 120 respondents who participated in this study, i.e., 40 in each city selected with accidental sampling. The consumers’ WTP was assessed using contingent valuation method, and its determinant factors was analyzed using multiple regression. The results showed that the majority of chrysanthemum consumers in the three cities were 17-25 years old, were female, held a bachelor degree, owned a job, were single and had no dependent. The value of wilingness to pay from the three cities shows higher results than the market price of IDR 30,000. The highest WTP value is in Semarang City and the lowest WTP value is in Yogyakarta City. Based on the results of the regression, the determinants that influence the value of WTP differ in each city, but income is a significant determinant in all cities. The value of willingness to pay chrysanthemum Pasopati cultivar can be used as a reference to set the selling price of chrysanthemum flowers. Chrysanthemum such as Pasopati cultivar in Indonesia, needs to be developed more by looking at the willingness of consumers to pay.

Economic Impact of Sugarcane in Inodonesia: An Input-Output Approach

Sugarcane revitalization is both a challenge and an opportunity in Indonesia. Demand for sugar tends to increase from year to year that fulfilled by domestic production and imports. Thus, it is necessary to increase domestic sugarcane competitiveness to balance national sugarcane production and consumption. This study’s objectives were (1) to determine the forward linkage and backward linkage of sugarcane in Indonesia, and (2) to know the output, income, and employment multiplier. The linkages and multipliers of sugarcane were calculated by the input-output analysis of 66 sectors from 1975 to 2005 by Statistics Indonesia (BPS). Estimation values for 2010, 2015, and 2020 are obtained from the linear forecasting method. T-test was used to compare linkages and multipliers between sugarcane and the average of all sectors in the economy. The results showed that the backward linkage, output, and employment multiplier of sugarcane were lower than the average of all sectors in the economy. Besides, the forward linkage of sugarcane was equal, and the income multiplier was higher than the average of all sectors in the economy.

Farmers’ Willingness To Pay For Livestock Insurance Programs In Kulon Progo District

Livestock Insurance is one of the insurance products supported by the government with PT Jasindo as the organizer. Livestock insurance will provide the potential for cattle ranchers who can get risk threats such as cattle deaths due to illness, accidents, losses caused by theft, and deaths due to breeding. This study aims to determine the value of the willingness of farmers to pay the insurance and the factors that affect the willingness of farmers to pay insurance. This research was conducted from February to March 2020 in the Kulon Progo district. Location determination is done by purposive sampling based on data from the farmer following the insurance program. Primary data obtained from 53 farmers with the help of a questionnaire and analyzed by the method of contingency value (CVM) and multiple linear regression. The research shows the average value of willingness to pay insurance is IDR45,660 per head per year above the value of the insurance premium assessment. Factors that significantly influence a Farmer's Willingness to Pay (WTP) for the Insurance program are the variable number of family dependants and income, while the age, duration of raising, and education have no significant effect. Based on the value of the EWTP obtained, which is very low, the expectation of farmers is not to demand too low a price.

Characteristics and Preferences of Chicken Meat Consumers before and during Covid-19 Pandemic in Sleman Regency

People purchase and consume poultry meat to fulfill their animal protein needs. In early 2020, COVID-19 spread globally as well as in Indonesia that changes the social and economic conditions, which further affect people’s behavior in purchasing chicken meat. There are two types of this meat—broiler and free-range chicken—with different characteristics (attributes) that affect consumer preference. Consumers can choose chicken meat according to their needs and desires by considering its attributes. This study aims to determine chicken meat consumers' characteristics before and during the COVID-19 pandemic and determine the differences in consumer preferences for broilers and free-range chickens. The research was conducted in Sleman Regency from April to May 2020. The primary data collected through an electronic form from 100 respondents chosen by random sampling. The descriptive analysis examines chicken meat characteristics, and the Fishbein Multi-attribute determines consumer preference for chicken meat. The results showed that consumers continued to buy chicken meat during the COVID-19 pandemic but changed the amount of purchase and the purchase location. Two main attributes affecting consumer preferences, both for broilers and free-range chickens, are the aroma and freshness. The third attribute affecting consumer preference for broilers is the meat color, while in free-range chicken, it's the halal status.