Carrying capacity and food self-sufficiency of paddy field resources: NDVI analysis in Batang Regency, Central Java Province, Indonesia

Food self-sufficiency policy in Indonesia relies on the sustainability of productive land that meets the requirements for carrying capacity of agricultural land. But the fact is that in various regions, the existence of agricultural land resources is increasingly being degraded in terms of quantity and quality. This study aims to evaluate paddy field with NDVI analysis with extensive GIS calculations and integrated with the food self-sufficiency formulas. Monitoring of paddy field area using remote sensing and mapping techniques has been well recognized and efficient. The research was conducted in Batang Regency, Central Java Province, Indonesia, that annually produces 104,211ton rice on average. The results showed that the production of lowland rice is sufficient to meet the daily rice needs of 897.19 gr per capita. The regency also showed a surplus of rice production of more than 342 gr per capita above the daily needs, fulfilling the criteria of food self-sufficiency. Food self-sufficiency classification is associated with the carrying capacity analysis found ca. 4.179 (α>1), revealing that rice production can fulfil the needs of the population of Batang Regency. JEL Classification 013; Q00; R11

The traditional clothing industry of Banjarmasin Sasirangan: A portrait of a local business becoming an industry

Sasirangan is a traditional fabric typical of the Banjar tribal community and has now been developed into an industrial product in Banjarmasin. Sasirangan's business development shows a significant development and it becomes very essential to pay attention to how to maintain its business. This article aims to describe the business operations and distribution patterns in the Sasirangan clothing industry. The qualitative approach was used in this study coupled with data collection through interviews, observations, and documentation. The results showed that Sasirangan fabric products are produced by artisans who work individually or in groups and marketed by traders. Marketing of Sasirangan cloth products uses a direct distribution pattern to consumers, and indirectly uses a merchant intermediary who then resell them to consumers. The collaboration of Sasirangan artisan and traders can be further enhanced to develop a convection industry based on local culture. The findings of this study provide a further description of how local culture-based businesses require support from the government and other parties to maintain business sustainability.JEL Classification J24; M31; O14

Information and communication technology, inequality change and regional development in Indonesia

Although the advancement of technology provides numerous opportunities to boost economic growth and development, equal distribution may not be guaranteed. Thus, this study seeks further elaboration as to whether ICT development has a role to play in the inequality in Indonesia. Using municipal level data from 2018, the study provides both linear and non-linear models to be estimated using OLS and 2SLS. Major findings include: (i) the availability of basic ICT infrastructure is strongly linked to the reduction of inequality; (ii) the actual ICT use is positively associated with inequality, albeit at a diminishing rate, revealing a non-linear relationship similar to Kuznets' curve; (iii) the ICT skill variable comprising the education level has direct correlation with ICT use instead of inequality, with an additional score on ICT skill being associated with an increase in ICT use; (iv) the relationship between ICT use and inequality differed depending on the level of economic development, with lower-income regions experiencing the inverted U-shaped relationship as in the original Kuznets curve and higher-income regions experiencing the U-shaped curve.JEL Classification: D63; I24; O10

Spatial modelling of multidimensional poverty in rural area: Evidence from Malang Regency, Indonesia

Poverty is a multidimensional phenomenon that causes difficulty for people to meet their needs. The research aims to scrutinize physical and social infrastructures concerning multidimensional poverty levels using the spatial approach. Jabung District, Malang Regency, Indonesia has 35% poor households in this case study. The objectives are to measure multidimensional poverty levels, social capital indices of the rate of participation (RoP) and density, and scrutinize neighborhood relationships among 15 villages using spatial regression analysis. Data collection is through a questionnaire survey of 274 heads of households. The research identified four poverty levels (very low to high), where five villages with high poverty levels (Jabung, Taji, Kemiri, Gunungjati, Slamparejo) became the targeted areas. The majority of the villages had a medium level of both the RoP and density, and the community had moderate social relations among community members. The spatial regression analysis indicates that the attribute of the RoP and weight matrix have a significant impact on the poverty level. It is recommended that poverty alleviation programs should focus upon the cluster of poor villages through social infrastructure development as the action to end poverty.JEL Classification A13; I32; R58

Socioeconomic and demographic characteristics as sources of social capital: A study of Indonesia

Over a decade, the development in Indonesia has achieved a good performance in macroeconomic indicators: stability in the economic growth and declining trend of poverty rate; however, this development tends to ignore the social phenomena in terms of social capital, in which the social capital index decreases dramatically during the past ten years. This paper aims to examine the sources of social capital in Indonesia. Consequently, the policymakers obtain some information to improve the social capital index in Indonesia. The present study utilizes the Indonesian Happiness Measurement Study (SPTK) 2017 covering 72,317 households around Indonesia and involves trust and tolerance, collective action, and group and network dimensions as a proxy of social capital. This study employs Ordinary Least Squares (OLS) analysis and finds that education is essential in predicting social capital. Besides, this study confirms that gender and location significantly affect social capital, where males and rural residents are likely to have higher social capital than females and urban residents in Indonesia. Eventually, based on research findings, this study offers some policy implementation for enhancing the social capital index in Indonesia: expanding the free educational program, encouraging women's participation in the community, and continue the village funds program.JEL Classification: B55; I25; O10

The portrait of the underground economy and tax evasion: Descriptive analysis from border region

Underground economic activity is a phenomenon that requires special and continuous treatment. This phenomenon is counterproductive to local revenues and is related to corrupt practices and tax evasion. The research was conducted in Bengkayang Regency, West Kalimantan Province, Indonesia. The qualitative phenomenological method was carried out by interviewing underground economic actors such as liquor producers, "pangku" coffee shops, and street vendors. The findings indicate that corruption activities in the form of collecting bribes and offering bribes are carried out in cash without going through a legal transaction mechanism. The underground economy practices tax evasion, does business without a permit, pays substandard wages, and does not protect workers with insurance. The underground economic activity will contribute to an increase in the circulation of money in society, but do not take into account the regional economy. Such situations call for massive supervision of individuals and the introduction of pentahelix elements to form synergies between actors and to begin to integrate and develop digital structures in every financial activity using e-government systems.JEL Classification D73; E26; O17

Institution reinforcement of mosque in social economic empowerment of small traders community

Historically, mosque is the center for human civilization with various activities covering social, economy, and culture. However, its function have been shifted and specialized into a place of worship. This paper aims to describe the contribution of the great mosque of Attaqwa Pancor in social economic empowerment, particularly small businesses in Pancor, East Lombok, Nusa Tenggara Barat (NTB). The Data are collected through observation, interview, and document study. The result of the analysis shows that mosque involvement in the small-scale economic activities has brought them to be free from the difficulty of capital access and dependence. In the first stage, that is the period of 2019 to August 2020, through Mawar Emas program, total of 80 small-traders in Pancor village was helped to be free from debt problems. The great mosque of Attaqwa which is supported by Indonesia Sharia Economic Community (Masyarakat Ekonomi Syariah, MES) were successfully distributing the total amount of 80 million rupiahs for the small business purposes. The existence of the Attaqwa mosque proves and affirms that religious institutions can contribute to the social economic development. Considering the strategic position, this paper suggests the need for institutional reinforcement of mosque to restore its broad role in addition to religious issues.JEL Classification: A13; O15; Z12

Consumer behavior to Thai fruit consumption during COVID-19 pandemic in Jakarta, Indonesia

Indonesia imports fruits from around the world to serve people’s demand. Thailand as one of the fruit exporters to Indonesia needs to further explore what influences the consumption of Thai Fruits in Indonesia. Moreover, currently the COVID-19 pandemic likely affects all sectors, including the agriculture sector. This study aims to analyze the relation between socioeconomic characteristics and consumer behavior, particularly the pandemic period, that affects the purchasing decision of Thai Fruits. Using a structured questionnaire, random sampling of 1,736 respondents who shop at 5 All Fresh Supermarket branches were interviewed. The data was analyzed using the chi square test and binary logistic regression. The results found that socioeconomic characteristics such as age, gender, education, occupation, and income had a relation with Thai Fruits purchasing decision. In term of product awareness for instance, quality and taste is the utmost concern for customers. However, during COVID-19 pandemic, the level of customers’ consideration for quality and safety is clearly higher. Therefore, a different strategy is needed to convince consumers. The result also found that tasting experience influences purchasing decision significantly. To enhance international economic development, such agricultural products must respond to the customers’ needs and mutual cooperation between trading countries.JEL Classification: F13; Q13; Q17

The contribution of rainfed rice farming to income and food security of farmers’ household

Increasing production from rainfed rice field farming is expected to have direct implications to farmers’ income and food security. Improvement in farmers’ income will ensure the fullfillment of quality food. This study aims to analyze the contribution of rainfed rice farming to the household income and household food security of the farmers who cultivate rice in rainfed rice fields. This research was conducted in Maros Regency in three districts, namely Lau, Maros Baru and Simbang. The sample of this research was 100 farmers in rainfed rice fields. The research used survey method with the instruments of observation, recording and interviews. Data were analyzed using quantitative description coupled with t-test for independent samples. The results showed that the rainfed rice farming contribution to the household income in Lau, Maros Baru and Simbang District was 90.0%, 70.0%, and 57.5%, respectively. In term of farm household food security based on the share of food expenditure, the farmers’ households were food insecure with 73.33%, 83.33%, and 67.50% for each regions. This study suggests that farmers need to diversify their income source to crops other than rice. Such effort will be able to increase the income and food security of farmers’ households.JEL Classification Q12; Q18; R14

The production risk of broiler farm management at plasma breeders: Evidence from Indonesia

The broiler chicken business is essential to providing national meat consumption in Indonesia. However, the business also faces a very significant management risk. The purpose of this research is to study broiler farm management and the effect of its business management on the production and production risk. This research was conducted in Lamongan regency of East Java by interviewing broiler chicken farmers and using descriptive and multiple linear regression analysis. The results of the research show that the implementation of broiler farm management reached 73.48% of ideal situation, with planning reaching 67.64% ideal situation, 65.58% for ideal organizing, 84.18% for optimal direction, 74.43% for ideal coordination, and 77.58% for ideal control. Also, the management had a positive influence on the production of the broiler livestock business, with an elasticity of 0.700. The management had a negative effect on the risk of production of broiler livestock business with the elasticity of 0.237. Production risk was negatively affected by the number of chicks and the amount of feed. To provide support for breeders in their business, it is necessary to have a policy of low cost of broiler cultivation, especially the cost of chicks and feed, by setting DOC prices and cheap or cheaper feed. Besides, it is required to develop cooperation with companies using broiler primary products, as well as certain policies so that there will be businesses that use broiler primary products as their main ingredient.JEL Classification D13; Q02; Q12