Efisiensi Teknis Produksi Usahatani Tebu Jawa – Luar Jawa: Pendekatan Stochastic Frontier Analysis

Abstract

Sugar cane is the main ingredient in the production of sugar which is consumed by the majority of Indonesian people. This commodity has a vital role in various aspects such as economic, social, and political. In providing the need for sugar, there needs to be good planning so that various upheavals do not occur. Sugarcane production produced by farmers for a decade has significantly increased to reach an average growth of 0.84 percent. Meanwhile, the sugarcane harvested area, which is the main factor in production, has dramatically decreased with an average growth of -0.05 percent since 2012. The decreasing harvested area is a concern in maintaining Indonesia's sugarcane production. However, the Sugar Factory (PG) requires a large harvest area for sugar production, accounting for 20 thousand ha to produce 10 thousand tons of sugar per day, thus causing a critical concern in population growth. In increasing production with continuously decreasing land conditions, it is necessary to use the Intensification method. The island of Java is dominating sugarcane production in Indonesia, which in the long term, it will no longer be able to contribute to production due to the conversion of agricultural land to non agricultural use and the level of technical efficiency in the current sugarcane farming production which has been almost well-developed. This condition is an alternative for the development of more agricultural areas outside Java Island. There are 10 provinces outside Java, namely Lampung, South Sumatra, Aceh, West Nusa Tenggara, Gorontalo, East Nusa Tenggara, North Sumatra, Bali, South Sulawesi and Southeast Sulawesi and 4 provinces in Java, namely East Java, Central Java, West Java, and DI Yogyakarta which have become targeted areas for the development of sugar cane based on PERMENTAN NO. 18 of 2018. This study aims to analyze and discuss the level of technical efficiency of sugar cane farming in Java and outside Java. The performance of sugarcane farmers in Java - Outside Java is seen from the level of technical efficiency which can indirectly describe the performance of sugarcane farmers in the development of sugarcane areas. The data used in this study is secondary data in the form of cross sections. The research data comes from the results of the 2014 Sugar Cane Business Household Survey which is part of the results of the 2013 Central Statistics Agency Agricultural Census with code ST2013-SKB.S. The research data were analyzed using a technical inefficiency model on the Cobb-Douglas stochastic frontier production function to see the characteristic and socioeconomic factors that influence inefficiency. Based on the research results in achieving maximum output, land, seeds with nitrogen fertilizer, phosphorus fertilizer, potassium fertilizer, and labor have a significant effect on Java Island, whereas the harvest area, seeds, and fertilizer elements of phosphorus become crucial factors outside Java Island. Among the variables concerned, land has the highest coefficient for Java Island. It shows that the increase in harvested area in Java is 4 times greater in producing production compared to outside Java. Increased harvested area is closely related to extensification. This is more likely to be done outside of Java. In this case, for land in the sugar cane area, agricultural land that already exists or is ready for use. The level of technical efficiency in Java is lower than outside Java, marked by technical efficiency in Java of 78.4 percent, while outside Java it is accounted for 93.4 percent. Theoretically, farmers outside Java have almost reached their frontier production, and Java Island still can increase production by 21.6 percent. Three factors have a significant effect among the 6 factors of technical inefficiency. These factors are institutional factors of sugarcane farming in Java and outside Java which are expected to increase the technical efficiency of sugar cane in Java – Outside Java sugarcane areas such as farmer groups, KUD and farmer partnerships. Farmers are advised to join farmer group memberships, KUD and partnerships and play an active role in the institutional organization of the farming business to increase the efficiency of sugar cane farming. In addition, the government also proactively determines policies which can ensure that the farmer institutions have quality in providing facilities to farmers who are members of the institutions. Farmers in the sugar cane area should also apply the suggestions mentioned to increase the amount of production and the success of the development of the sugar cane area based on the farmers’ corporation itself.