Analysis of the Rice Commodity Supply Chain Value in Central Java Province, Indonesia

Ardito Bhinadi; Radiani Nurwitasari; Rodhiah Umaroh; Lupita R Yusuf

doi:10.66445/twe.v44i2.270250

Authors

Ardito Bhinadi Universitas Pembangunan Nasional "Veteran" Yogyakarta, Indonesia
Radiani Nurwitasari Bank of Indonesia, Central Java, Indonesia
Rodhiah Umaroh University of Pembangunan Nasional “Veteran” Yogyakarta, Indonesia
Lupita R Yusuf Bank of Indonesia, Central Java, Indonesia

DOI:

https://doi.org/10.66445/twe.v44i2.270250

Abstract

This study examines the rice supply chain in Central Java, Indonesia, focusing on distribution patterns, price formation mechanisms, and the broader implications for food security. The study uses a combination of qualitative and quantitative methods, including descriptive statistics, stakeholder analysis, and network visualization, to map the flow of rice from producers to consumers. The research identifies significant inefficiencies within the supply chain, primarily due to the dominance of intermediaries, which leads to inflated prices for consumers and minimal income for farmers, particularly smallholders. The findings show that rice prices fluctuate significantly, influenced by factors such as weather variability, fertilizer shortages, and limited access to capital. These issues are compounded by inadequate infrastructure and gender disparities in access to agricultural resources. Based on these findings, the paper proposes policy recommendations aimed at strengthening farmer organizations, such as Gapoktan, improving agricultural infrastructure, enhancing access to fertilizers, promoting gender equality in agriculture, and introducing price stabilization mechanisms. These recommendations seek to enhance the efficiency and equity of the rice supply chain, improve farmers' livelihoods, and strengthen food security in Central Java.

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