An Analysis of Technical Efficiency Variation in Indonesian Rice Farming

Tri Haryanto, Basri Abdul Talib, Norlida Hanim Mohd Salleh

Abstract


Rice farming in Indonesia has an important role as a sector producing staple food for almost all of the population and provides a livelihood for millions of people in rural areas. Conditions of rice farming in Indonesia are quite unique because it is scattered in many island with diversity of social and economic characteristics of farmers, environmental conditions, and potential production. This study apply two-stage Data Envelopment Analysis (DEA) to estimate technical efficiency and analyses the determinants of technical efficiency rice farming based on farm level data collected by the Central Bureau of Statistics the Republic of Indonesia. The results showed that the average technical efficiency in all the rice-producing regions in Indonesia is moderate to High. This study suggest that policy to increase the technical efficiency in Indonesian rice farming should be prioritized on the use of certified seeds, control of pests and diseases, government assistance, education and irrigation.


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DOI: https://doi.org/10.5539/jas.v7n9p144

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Journal of Agricultural Science   ISSN 1916-9752 (Print)   ISSN 1916-9760 (Online)  E-mail: jas@ccsenet.org

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