FEASIBILITY STUDY OF SERICULTURE BUSSINES AND DIVERSIFICATION PRODUCTS (INNOVATION ADOPTED) IN WAJO REGENCY, SOUTH SULAWESI
Jun Harbi, Dodik Ridho Nurrochmat and Clara M. Kusharto
Program Studi Pengelolaan Sumberdaya Alam dan Lingkungan 28
Sekolah Pascasarjana 29
Institut Pertanian Bogor 30
Bogor (Indonesia)
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ABSTRACT
In average cocoan production in the Walennae Village about 65-70% of the Wajo production, therefore that Walennae Village production may represent Wajo production. However, cocoan production levels in the Walennae Village still fluctuated annually. Production levels are likely to rise in the2013 and declined dramatically in 2014. This research aims to assess and analyze the feasibility status of sericulture business and diversification products by using financial analysis. Results of financial feasibility analysis showed that at the minimum production, NPV is Rp 3.229.402, IRR 48% and Net B/C 2.71 (currently). Whenever, the innovations adopted, such as NPV is Rp 3.503.903, IRR 33% and Net B/C 1,91. Making diversified products in the form of of silkworm pupa powder (Tepung Pury) by adoted innovation is the immediate vital to optimize profits. With selling price of Pury powder is Rp 22.580/kg, net profit that can be generated is Rp 596.899 (optimum production) and Rp 3.780.099 (minimum production). The conclusion of this study is the sericulture business and products diversification (innovation adopted) on Walennae Village is feasible to implement.
Keyword : Feasibility, sericulture, diversification products, innovation adopted
ANALYSIS OF DISASTER PREVENTION FOR SMOKE
CAUSED BY LAND AND FOREST FIRES USING ECONOMIC INCENTIVES IN RIAU
Usamah Khan
SPIRIT International,
Soceity Partnersip toward Resilience for Disaster Reduction, Riau, Indonesia
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ABSTRACT
This time for the benefit of plantations in Riau, most people who clear the land and forests by burning. Burning on a vast scale can lead to disaster of smoke. This condition is increasingly disrupt the lives of people, both from health and economic. The most dominant impact of smoke is very annoying entire community activities, such as education processs and transportation systems in wide area coverage up to neighboring countries. This study aims to figure out a holistic solution for smoke disaster caused by land and forest fires by using economic incentives. Incentives are given to the owner of land that clear land without burning. The method goes to rapid rural appraisal at selected sites in Rokan Hilir District, Riau. The collection of data and information conducted by direct observation, informal interviews with people who live near the plantation, local leaders or officials concerned and discussion with some relevant professionals. The results find that people who clear the land by burning. because they do not have money to clearing land manually or using heavy equipment. It indicates that economic situation become a basic reason to burn. The economic incentives for land clearing will reduce the risk of land and forest fires. Economic incentives need approaching of require regulation from the government. Financing schemes from Professionals and banking institutions must be discussed for proper implementation.
Keywords : Disaster Prevention, Land and Forest Fire, Economic Incentives
ANALYSIS OF INDONESIA’S PEPPER IN THE SUPPLY AND DEMAND
Ermi Tety, Eliza, and Hamdani
Science Agribusiness / Agricultural Economics of Agriculture University of Riau
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ABSTRACT
Indonesia is second biggest producer and exportir of pepper commodity in the world. The purposes of this research are: (1) to analyze of Indonesian pepper in the supply and demand; (2) to analyze the impact of exchange rate, price of world pepper, and combination among its to Indonesian pepper in the supply and demand. Analysis method used simultaneous equation with time series data from 1990 till 2013. The results showed that determinant coefficient (R2) of every equations are 0,51 till 0,86 and F value are 4,67 till 20,16. Indonesian pepper production significantly influenced by real price of Indonesian pepper, Indonesian pepper export, real interest rate of Indonesia, and Indonesian pepper production last year. Indonesian pepper demand significantly influenced by Indonesian population. Indonesian pepper export significantly influenced by growth of Indonesian pepper demand and Indonesian pepper export last year. Indonesian pepper price significantly influenced by Indonesian pepper production, real exchange rate of IDR to USD, inflation rate of Indonesia, and Indonesian pepper price last year. Real price of Indonesian pepper isn’t responsive to Indonesian pepper production in short run and responsive in long run. Indonesian population is responsive to Indonesian pepper demand in short run and long run. Other exogenous variables aren’t responsive to endogenous variable in short run and long run. The exchange rate depreciation, the increase price of world pepper, and combination among its impact to increase of Indonesian pepper price, export, and production and degradation of Indonesian pepper demand. Development of pepper agroindustry must intensively to improve domestic demand and give economic value to pepper commodity.
Keywords: Pepper, supply and demand response, simultaneous equation
THE CONTRIBUTION OF SPOT - FUTURES PRICE AND OTHER VARIABLES TO THE INDONESIAN CRUDE PALM OIL (CPO) EXPORT
Athika Budi Prihatini1, Rina Oktaviani2 and Tanti Novianti3
Graduate student of Economics Department, Graduate School of Economics Bogor Agricultural University (IPB)
1Professor at the Economics Department and Director of International Trade Analysis and Policy Studies (ITAPS) Faculty of Economics and Management, Bogor Agricultural University (IPB)
2Lecturer at the Economics Department and Researcher of International Trade Analysis and Policy Studies (ITAPS) Faculty of Economics and Management, Bogor Agricultural University (IPB)
3Chairman of Indonesian Agricultural Economics Association of Palembang
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ABSTRACT
Crude Palm Oil (CPO) plays important role in Indonesian economy, especially as the main export commodities of non-oil sector. As a strategic commodity, the development of exports and the spot-futures price of CPO need to be taken in order to increase the contribution of CPO. In line of the issue, the main objective of this study is to analyse price volatility and contribution of spot price, futures price, export price, production, exchange rate, interest rate, inflation and world oil price to export. The daily data for the period Juni 2010-December 2014 and monthly data of January 2009 to December 2014 are taken as input for the study. The volatility are analyzed by applying ARCH-GARCH and contribution price and other variable series are analysed by applying VECM. The test results indicate that spot price and futures price are volatile. The result also shows that the dummy futures prices, production, exchange rates, interest rate, inflation and world oil prices variables have a significant effect on CPO exports. The CPO economic development should be taken into account those significant factors.
Keywords : spot-futures price, volatility, CPO exports
LAND LIMITING FACTORS FOR OIL PALM DEVELOPMENT IN BOLAANG MONGONDOW REGENCY, INDONESIA
Johannes E.X. Rogi1, Johan A. Rombang2 and Josephus I. Kalangi3
1Agronomy Lab. Faculty of Agriculture, Sam Ratulangi University, Manado Indonesia
2Soil Science Lab. Faculty of Agriculture, Sam Ratulangi University, Manado Indonesia
3Agroclimatology Lab. Faculty of Agriculture, Sam Ratulangi University,Manado Indonesia
Chairman of Indonesian Agricultural Economics Association of Palembang
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ABSTRACT
Without land, palm trees would not be economical to commercial cultivation. Climate elements are parts offactors that determine the level of land suitability. Each type of plant needsa certain range of climatic elements in each phase of growth. Climateelements in certain circumstances can be a limiting factor in crop growth stage and aserious problem since they are difficult to control. Therefore, climate elements play important role in improving crop yield and crop quality. The higher the desired yield andquality of a crop, the moresuitable the climate elements should be. Besides climate elements, soil characteristics also play important role in crop yield and quality.In this research, soil physical and chemical characteristics that were measured and observed consist of drainage, texture, depth, clay-cation exchange capacity, base saturation, pH, C-organic content, electrical conductivity, slope gradient, flood risk, and rock outcrops. Based on USDA soil taxonomy,soil types in the study area consist of Typic Endoaquepts, Typic Hapludalfs, Typic Eutrudepts, and Typic Udorthents. Further result also indicated that soil depth was the predominant, serious limiting factor for the development of oil palm plantation. Another serious limiting factor is the slope gradient greater than 40%. Severalminor limiting factors in the study area are drainage, flood risk, and air temperature.
Keywords: Oil palm,land, climate, limiting factors.
ROLE OF ECO-TOURISM FOR SUSTAINABLE RURAL DEVELOPMENT AND CLIMATE CHANGE MITIGATION: W.R.T. MAREDUMILLI, ECO-TOURISM PROJECT, ANDHRA PRADESH STATE, INDIA
Teki Surayya
Professor and Dean academic affairs Adikavi Nannaya University (Autonomous body under Government of Andhra Pradesh, India) Rajahmundry-533105, India. website www.nannayauniversity.infoPhone: 91-8121692457 and +91-883-2472616-17,
Chairman of Indonesian Agricultural Economics Association of Palembang
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ABSTRACT
Maredumilli community based eco-tourism project, Vana Vihari (excursion to forest) Maredumilli forest village, East Godavari District, Andhra Pradesh, India. Project was developed by Government forest department and give to communities. A management committee of 18 members manages project on their own. Project is presently self sustaining. Average monthly revenues is INR 0.1 million out of which wages INR 54000, electricity overheads 15000 and 1500 to forest department fee and maintenance 5000 to be incurred per month. Remaining revenue realized from the project is allocated to promote health of forest. Findings of study show that Vana Vihari, provides livelihoods to 68 families. 5th day of every month project community general meeting is being held to make necessary decisions. Impact of project is visible in many folds; a) local communities have become entrepreneurs and 68 households, directly or indirectly getting their livelihood, b) degradation of ecosystem has been decreased through community based ecotourism management c) forest canopy has been improved significantly that is contributing for climate change mitigation and rural development and d) local communities have become safeguards against exploitation of natural forest resources and forest protection force. The main objective of the study was to evaluate impact of project in terms of the project’s role - a) providing livelihoods local rural communities, b) protecting natural forest against exploitation and c) to measure role of ecotourism in mitigating climate change.
Keywords: Community, Eco-tourism, rural development, Livelihoods, Impact
INCENTIVE ON LAND PRESERVATION PROGRAM IN KUNINGAN REGENCY BASED ON SOCIO-ECONOMIC INDICATOR
Danang Pramudita1, Arya Hadi Dharmawan2 and Baba Barus2
1Graduate Student of Rural and Development Planning, Bogor Agricultural University
2 Bogor Agricultural University
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ABSTRACT
Agricultural land conversion in Indonesia has became a major concern since 1980s. Land conversion have a great impact to food production, loss of ecological function, agriculture unemployment, and loss of irrigation infrastructure. Juridical approach is not longer effective to address the issue of land conversion, thus the government need to adopt more operational approach. The aim of this research are to identify socioeconomic characteristics in the area of land preservation program (LP2B) in Kuningan Regency and to determine the incentives for LP2B program. Data were analyzed by descriptive statistics, likert scale and system dynamic. Based on the result, there are nine socioeconomic indicator on land preservation program (LP2B) in Kuningan Regency, namely; land conversion rate, food balance, disparity between farm and non-farm income, agriculture households, agriculture labor, farmers' groups, spatial planning policies and farmers perceptions. Farmers have a positive perception on LP2B program. The dynamic model simulation showed that moderate scenario consist of price policy, tax reduction, irrigation improvement, with fertilizer and seed subsidy reduction gives the best results. Incentives priority should give to Cilimus sub district due to high conversion rate. Meanwhile Ciawigebang and Cibingbin sub district become a next priority. Instead of rely on incentives for farmers, government should make an disincentive to those who convert the agricultural land.
Keywords : incentive, LP2B, perception, socioeconomic
impacts of LAND FOREST CONVERSION TO OIL PALM PLANTATION ON THE indonesian MACROeconomy AND INCOME DISTRIBUTION
Rina Oktaviani1, Eka Puspitawati2, Noer Azam Achsani3 and Sahara2
[1] Professor at Economics Department and Director of International Trade Analysis and Policy Studies (ITAPS) Faculty of Economics and Management, Bogor Agricultural University (IPB),
2 Lecturer at Economics Department and Researcher of International Trade Analysis and Policy Studies (ITAPS) Faculty of Economics and Management, Bogor Agricultural University (IPB)
3 Professor at Economics Department and Senior Reasercher of International Trade Analysis and Policy Studies (ITAPS) Faculty of Economics and Management, Bogor Agricultural University (IPB)
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ABSTRACT
The deforestation and degradation of tropical forests including land forest conversion result in a range of negative impacts, such as soil erosion, biodiversity loss and climate change. However, the loss of forests also results economic benefits, such as the production of food and estate crops. This paper investigates impacts of land forest conversion particularly to oil palm plantation on the national macroeconomy performance and household income distribution. Using a computable general equilibrium (CGE) model of forest, this study results that although land change increases real GDP and real household consumption, the positive impact is very slight. This study also shows a decresing real income of some rural households. Land forest conversion and productivity improvement in oil palm sector can be slightly better impact on Indonesian economic performance. Real Gross Domestic Product (GDP) will slightly increase because of increasing in investment and some household consumption categories. The policy of improving productivity of oil palm sector wil increase the Rural 2, however it is still almost the same impact with deforestration. It must be considered increasing the palm oil productivity to increase the welfare of poor rural household. The partnership between landless and small scale farmer with and large scale plantation is needed in order to increase the welfare of the rural agricultural household income.
Keywords: forest land conversion, oil palm, income distribution, CGE
COASTAL VULNERABILITY OF BANGLADESH IN TIMES OF CLIMATE CHANGE
Md. Zahirul Haque Khan, Md. Nasim Al Azad Khan, Md. Saiful Islam, Md. Raqubul Hasib
* Director, Coast Port and Estuary Management Division, Institute of Water Modelling, Dhaka-1206, Bangladesh.
Junior Specialist, Coast Port and Estuary Management Division, Institute of Water Modelling,Dhaka-1206, Bangladesh.
Junior Specialist, Coast Port and Estuary Management Division, Institute of Water Modelling, Dhaka-1206, Bangladesh.
Junior Engineer, Coast Port and Estuary Management Division, Institute of Water Modelling,Dhaka-1206, Bangladesh.
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ABSTRACT
The geographical location and geomorphologic conditions of Bangladesh have made the country one of the most vulnerable due to its extreme vulnerability to cyclones and storm surges with the effects of climate change particularly to Sea Level Rise. In order to understand the seal level rise, the trend of the annual maximum, average and minimum of available time series water level data for three tidal water level stations namely Hiron Point, Khepupara and Rangadia has been carried out applying regression analysis technique. The linear trend for annual maximum indicates increasing trends of 7.8mm/yr, 8.1mm/yr and 5.8mm/yr for Hironpoint, Khepupara and Rangadia respectively along the coast of Bangladesh. One of the objectives of this research project is to use the existing storm surge model for vulnerability assessment of the coastal area and upgrade and updating of available storm surge model with improve modeling system for the coastal region of Bangladesh to investigate the vulnerability of coastal area due to storm surge flooding. The available hydrodynamic model based on MIKE 21 classic system (structured Grid system) for Bay of has been used to assess the combined effects of sea level rise and increase of cyclonic wind speed on cyclonic storm surge level and inundation. Relative Sea Level Rise has also been established considering the global seal level rise in accordance with the Assessment Report-5 of IPCC and local effects based on literature review. The increase of wind speed in the changing climate is considered based on literature review and IPCC reports. The simulation of future climate scenario considers 50cm sea level rise and 10% increase of wind speed in 2050. The simulation result shows that about 19,147 sq. km costal area is inundated by more than 1m water depth due to past cyclone during last 50 years (1960-2009) whereas in 2050, it will be 10% increased owing to sea level rise which indicates that the coast will become more vulnerable. The increase of storm surge height is likely to be in the range from 0.50m to 1.25m in the changing climate.
Keywords: Bay of Bengal Model, Inundation, Sea Level Rise, Subsidence, Tide, Trend Analysis
COFFEE FARMER’S PERSPECTIVE IN RISK AND CERTIFICATION SCHEME
Hanung Ismono1,Fitriani2,Bustanul Arifin1 and Wan Abbas Zakaria1
1Lampung University
2State Polytechnic of Lampung
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ABSTRACT
As well known, certification for agriculture commodities broadly develop recently in global market. Global buyer strongly drives the market. Certification is a part to fulfillspecific requirements for their global supply chain. Environment, economic and social issue as sustainability development outlook usually becomes the basis principal in certification. They determine specific requirements for their global supply chain, including in coffee. Indonesia as 5th coffee producer in the world has been response the consequence. Coffee certification introduced in Indonesia since 2007 initiated by global private sector. This study was aims to know coffee farmer’s perspective in risk related with income household and certification view. Survey approached trough 408 coffee farmers as respondent. It was conducted in Tanggamus Regency, Lampung Province in 2012. Method analysis was through by Chi-square and regression model. The result performed that coffee farmer’s perspective in risk significantly linked withcertainty in land property right, decreasing yield production, and environment condition. Environment conditions were include land degradation, water quality, water shortage, and biodiversity loss. In other side, the estimation of farmer profitability in coffee farming had been determined by coffee acreage, education, experiences, and the participation in certification scheme.
Key words: coffee, certification, risk, environment