Analysis of the Effect of Credit on Rice Farming Efficiency in Java Badan Pusat Statistik, IPB University
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Accepted
5 October 2020
Published
1 December 2019
Keywords:
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Credit Access, Financial Institutions, Frontier Stochastics Technical Efficiency
Abstract
Efforts to increase rice productivity through extensification are increasingly difficult, so production efficiency becomes an important alternative. This paper aims to estimate the determinants of production factors and level of efficiency of rice farmers and the impact of access to credit, credit of formal and semiformal financial institutions on technical inefficiencies of rice farmers. Cross section data from 9,127 farmers in Java was obtained from the Survey (Rumah Tangga Usaha Tanaman Padi 2014). Analytical method used is stochastic frontier production function to analyze production and technical efficiency, dual frontier cost function to estimate allocative and economic efficiency and technical inefficiency function to reveal the effect of credit. The result is farmers on Java island have been technically efficient but not allocatively and economically efficient yet. Farmers who receive credit, credit from formal financial institutions and semiformal institutions are more efficient than non-credit farmers.
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Nuryartono N. 2007. Credit Rationing of Farm Households and Agricultural Production: Empirical Evidence in The Rural Areas of Central Sulawesi, Indonesia. Jurnal Manajemen Agribisnis. 4(1):15-21.
[OJK] Otoritas Jasa Keuangan. 2018. Laporan Profil Industri Perbankan Triwulan IV 2017. Jakarta (ID): OJK.
Quartey P, Turkson E, Abor JY, Iddrisu AM. 2017. Financing the growth of SMEs in Africa: What are the contraints to SME financing within ECOWAS. Review of Development Finance. 7(1):18-28.
Qureshi SK, Shah AH. 1992. A Critical Review of Rural Credit Policy in Pakistan. The Pakistan Development Review. 31(4):781-801.
Sarma M, Pais J. 2011. Financial Inclusion and Development. Journal of International Development. 23:613-628.
Satoto, Suprihatno B. 2008. Pengembangan Padi Hibrida di Indonesia. Iptek Tanaman Pangan. 3(1):27-40
Swamy V. 2014. Financial Inclusion Gender Dimension and Economic Impact on Poor Households. World Development. 56:1-15.
Tenaw S, Islam KZ. 2009. Rural Financial Services and Effects of Microfinance on Agricultural Productivity and on Poverty (Discussion Papers series). Helsinki (FI): University of Helsinki Department of Economics and Management.
Tinaprilla N. 2013. Analisis Efisiensi Teknis Usahatani Padi di Jawa Barat Indonesia. Jurnal Agribisnis. 7(1):15-34
Wati DR, Nuryartono N, Anggraeni L. 2014. Akses dan Dampak Kredit Mikro terhadap Produksi Padi Organik di Kabupaten Bogor. Jurnal Ekonomi dan Kebijakan Pembangunan. 3(2):75-94.
Afrin S, Haider MZ, Islam MS. 2017. Impact of Financial Inclusion on Technical Efficiency of Paddy Farmers in Bangladesh. Agricultural Finance Review. 77(4):484-505.
Abdallah AH. 2016. Agricultural Credit and Technical Efficiency in Ghana: Is There a Nexus?. Agricultural Finance Review. 76(2):309-324.
Aigner, DJ, Lovell CAK, Schmidt P. 1977. Formulation and Estimation of Stochastic Frontier Production Function Model. Journal of Econometrics, 6(1):21-37
Ambali OI. 2013. Microcredit and Technical Efficiency of Rural Farm Households in Egba Division of Ogun State Nigeria. Journal of Agriculture and Sustainability. 2(2).
Anggraini N, Harianto, Anggraeni L. 2016. Efisiensi Teknis, Alokatif dan Ekonomi pada Usahatani Ubikayu di Kabupaten Lampung Tengah, Provinsi Lampung. Jurnal Agribisnis Indonesia. 4(1):43-56.
Ashari. 2009. Optimalisasi Kebijakan Kredit Program Sektor Pertanian di Indonesia. Analisis Kebijakan Pertanian. 7(1):21-42.
[BI] Bank Indonesia. 2016. Laporan “Pilot Project Skema Pembiayaan Pertanian melalui Penerapan Konsep Pembiayaan Rantai Nilai”. Jakarta (ID): [DPU] Bank Indonesia.
[BPS] Badan Pusat Statistik. 2011. Struktur Ongkos Usaha Tani Tanaman Pangan 2011. Jakarta (ID). Badan Pusat Statistik.
[BPS] Badan Pusat Statistik. 2013. Proyeksi Penduduk Indonesia 201p-2035. Jakarta (ID): BPS.
[BPS] Badan Pusat Statistik. 2019a. Produksi Padi di Indonesia menurut Provinsi Tahun 1993 – 2015 dan Tahun 2018. Jakarta (ID): BPS.
[BPS] Badan Pusat Statistik. 2019b. Pendapatan Nasional Indonesia 2014-2018. Jakarta (ID): BPS.
[BPTP] Balai Pengkajian Teknologi Pertanian Sulawesi Selatan. 2016. Teknik Perbanyakan Benih Padi Bermutu. Makassar (ID): BPTP.
Boris E, Ant BU, Pinheiro OE. 1997. Technical, Economic, and Allocative Efficiency in Peasant Farming: Evidence from the Dominican Republik. The Developing Economies. 35(1):48–67
Chandio AA, Jiang Y, Gessess AT, Dunya R. 2017. The Nexus of Agricultural Credit, Farm Size and Technical Efficiency in Sindh, Pakistan: A Stochastic Production Frontier Approach. Journal of the Saudi Society of Agricultural Sciences. 18(3):348-354.
Coelli TJ, Rao DS, O’Donnell CJ, Battese GE. 2005. An Introduction to Efficiency and Productivity Analysis Second Edition. New York (US): Springer Science.
Demirgüç-Kunt A, Beck TH, Honohan, P. 2008. Finance for all? Policies and Pitfalls in Expanding Access. Washington DC (US): World Bank.
Duy VQ. 2015. Access to Credit and Rice Production Efficiency of Rural Households in the Mekong Delta. Sociology and Anthropology. 3(9):425-433.
Dong F, Featherstone AM. 2006. Technical and Scale Efficiencies for Chinese Rural Credit Cooperatives: A Bootstrapping Approach in Data Envelopment Analysis. Journal of Chinese Economic and Business Studies. 4(1):57-75.
Fazri M, Siregar H, Nuryartono N. 2017. Efisiensi Teknis, Pertumbuhan Teknologi dan Total Faktor Produktivitas pada Industri Menengah dan Besar di Indonesia. Jurnal Ekonomi dan Kebijakan Pembangunan. 6(1):1-20
Farrell MJ. 1957. The measurement of productive efficiency. Journal of the Royal Statistical Society. Series A (General). 120(3):253-290.
Fadwiwati AY. 2013. Pengaruh penggunaan varietas unggul terhadap efisiensi, pendapatan, dan distribusi pendapatan petani jagung di Provinsi Gorontalo. [Disertasi]. Bogor (ID). Institut Pertanian Bogor.
Junaedi M, Daryanto HK, Sinaga BM, Hartoyo S. 2016. Technical Efficiency And The Technology Gap In Wetland Rice Farming in Indonesia: A Metafrontier Analysis. International Journal of Food and Agricultural Economics. 4(2):39-50.
Junaedi M, Daryanto HKS, Sinaga BM, Hartoyo S. 2017. Efisiensi dan Kesenjangan Teknologi Usahatani Padi Sawah di Pulau Jawa. Jurnal Aplikasi Statistika & Komputasi Statistik. 8(2):1-19.
Kusnadi N, Tinaprilla N, Susilowati SH, Purwoto A. 2011. Analisis Efisiensi Usahatani Padi di beberapa Sentra Produksi Padi di Indonesia. Jurnal Agro Ekonomi. 29(1):25-48.
Koopmans TC. 1951. Activity Analysis of Production and Allocation. Di dalam: Alchian A, Dantzig GB, Georgescu-Roegen N, Samuelson PA, Tucker AW,editor. Cowles Commission for Research in Economics Monograph No.13; 1951; New York, United State of America. New York (US): The University of Chicago. Page 33-97.
Machmuddin N. 2016. Analisis Efisiensi Ekonomi Usahatani Padi Organik dan Konvensional [tesis]. Bogor (ID): Institut Pertanian Bogor
Nicholson W. 2004. Mikroekonomi Intermediate & Aplikasinya Edisi 8. Jakarta (ID): Erlangga
Nuryartono N. 2007. Credit Rationing of Farm Households and Agricultural Production: Empirical Evidence in The Rural Areas of Central Sulawesi, Indonesia. Jurnal Manajemen Agribisnis. 4(1):15-21.
[OJK] Otoritas Jasa Keuangan. 2018. Laporan Profil Industri Perbankan Triwulan IV 2017. Jakarta (ID): OJK.
Quartey P, Turkson E, Abor JY, Iddrisu AM. 2017. Financing the growth of SMEs in Africa: What are the contraints to SME financing within ECOWAS. Review of Development Finance. 7(1):18-28.
Qureshi SK, Shah AH. 1992. A Critical Review of Rural Credit Policy in Pakistan. The Pakistan Development Review. 31(4):781-801.
Sarma M, Pais J. 2011. Financial Inclusion and Development. Journal of International Development. 23:613-628.
Satoto, Suprihatno B. 2008. Pengembangan Padi Hibrida di Indonesia. Iptek Tanaman Pangan. 3(1):27-40
Swamy V. 2014. Financial Inclusion Gender Dimension and Economic Impact on Poor Households. World Development. 56:1-15.
Tenaw S, Islam KZ. 2009. Rural Financial Services and Effects of Microfinance on Agricultural Productivity and on Poverty (Discussion Papers series). Helsinki (FI): University of Helsinki Department of Economics and Management.
Tinaprilla N. 2013. Analisis Efisiensi Teknis Usahatani Padi di Jawa Barat Indonesia. Jurnal Agribisnis. 7(1):15-34
Wati DR, Nuryartono N, Anggraeni L. 2014. Akses dan Dampak Kredit Mikro terhadap Produksi Padi Organik di Kabupaten Bogor. Jurnal Ekonomi dan Kebijakan Pembangunan. 3(2):75-94.
Authors
AbubakarD., Anggraeni lukytawati, & FariyantiA. (2019). Analysis of the Effect of Credit on Rice Farming Efficiency in Java: Badan Pusat Statistik, IPB University. JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN, 8(2), 120-144. https://doi.org/10.29244/jekp.8.2.2019.120-144
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