Integrasi Spasial dan Vertikal Pasar Jagung di Indonesia

Abstract

Maize plays a vital role as raw material for animal feed, especially poultry, and is an essential commodity in Indonesia. Maize production and consumption centers are spread across several provinces in Indonesia. In addition, differences in harvest seasons result in disparities in supply and demand, leading to inter provincial trade and price transmission. However, a significant price disparity between one province and another indicates that price transmission has not gone well, and the market has not been integrated yet. An understanding of market integration can describe market performance that leads to market efficiency. In addition, the relationship between maize and poultry feed shows a reciprocal relationship possibility. This study aims to analyze the spasial integration of the maize market in Indonesia and the vertical integration between maize at the producer level, maize at the wholesale level, and animal feed. Spasial integration uses monthly data on maize prices for ten years from January 2010 to December 2019 in 13 selected provinces, while vertical integration uses monthly data on maize prices at the producer level, maize prices at the wholesale level, and animal feed prices in Indonesia from January 2017 to October 2020. Data were obtained from the Central Statistics Agency of the Republic of Indonesia (BPS) and internal data from one of Indonesia's major animal feed companies. The secondary data were then analyzed using the Johansen cointegration test, error correction model (ECM), and Granger causality test. The study results prove that there is no full spatial integration of the maize market in Indonesia, but only partially integrated. This illustrates that the maize market in Indonesia is still not efficient, so the existing maize trade policies must be directed to increase marketing efficiency. Banten province has the most influence on prices, showing that the demand side more affects maize prices. The vertical integration analysis proves that the price of feed is influenced by the price of maize, both at the producer and wholesaler levels. The results of this study also confirm that the price level of maize affects the development of the animal feed and livestock industry in Indonesia, so the policies applied to the production and trade of corn will also affect the feed and livestock industry in Indonesia.