Study of Rice Distribution in Regional Jakarta through Cipinang Rice Market Center

Abstract

DKI Jakarta is classified as rice consumer area based on its deficiency in rice production as compared to the number of population. Therefore, its dependency to other food producer area, particularly rice producer area, is relatively high. This condition leads to a mutual interaction in food/rice distribution between DKI Jakarta and its surrounding areas. Government of DKI Jakarta has appointed Pasar Induk Beras Cipinang/Cipinang Rice Market (PIBC) as the rice distributor in Jakarta Area. PIBC is managed by a local-owned enterprise, PT. Food Station Tjipinang Jaya, that maintains food security (rice) in Jakarta Area. As a main rice market in Jakarta Area, PIBC controls rice price stability in Jakarta and it will influence the price directly or indirectly in other areas. Price fluctuations often occur and tend to be seasonal due to supply and demand pressures during certain period. Because of inefficiency in rice distribution channels, there is a large disparity between producers and consumers prices. This study aims to: 1) analyze the rice distribution in Jakarta area through PIBC, 2) analyze the spatial interaction of rice distribution between regions, that is from the hinterland to PIBC in Jakarta, to identify the producer area that having the highest driving force, 3) analyze the land carrying capacity in the producer area, 4) analyze the patterns of price data and the level of revenue distribution obtained by farmer in the highest driving force areas, and 5) formulate the policy direction of agricultural sector and rice distribution in DKI Jakarta. Rice distribution mapping was made based on income and expenditure data of PIBC in 2011 and 2012 and treated with spatial analysis using geographic information system applications, while marketing flow and the involved institutions were obtained from interviews with entrepreneurs in PIBC and literature study. Analysis of interaction between regions is carried out using gravity model analysis. The information on the area that has the highest driving force to send its rice production to Jakarta was obtained from the analysis of interaction between regions. Based on these results, an analysis of the land carrying capacity in the rice production area was conducted to determine its ability to further supply the rice to Jakarta. The analysis of price data patterns was performed to reveal the price fluctuations and the price disparity between farmer and consumers prices. The analysis of marketing margins and the farmer's share was used to determine the efficiency of the rice marketing from producers to consumers. The analysis result shows that the marketing flow/rice distribution in Jakarta through PIBC involving various marketing institutions such as local merchants as supplier to PIBC, an agent in the Jakarta area, and retailers consisting of retailers in the supermarket, housing, and traditional markets in Jakarta. The rice supply to the PIBC comes mainly from West Java namely Karawang, Bandung, Cianjur, Cirebon, and Serang-Banten. The rice distribution from PIBC to Jakarta area reached 49 percent of PIBC total expenditures in 2012 with the highest spread in East Jakarta, followed by West Jakarta, South Jakarta, North Jakarta, Central Jakarta and the Thousand Islands respectively. Based on spatial interaction analysis, the rice marketing in PIBC is strongly influenced by rice production and the number of farmers in producer areas. Although population in destination area could be one of the tractions for rice marketing, but its influence is not significant. On the other hand, the distance reduces the marketing interaction between regions. Karawang, as one of the rice producer areas, has the highest interaction value of 0.56. The value indicated that Karawang has the highest driving force for sending its rice production to PIBC Jakarta. Although the price trend in PIBC for medium quality rice tends to increase, price fluctuations of medium rice often occur in the period of February to April. In the period of January 2008 until August 2012, the price of medium quality rice (IR-64 II) in PIBC increased approximately 0.66 percent per month. However, from all existing marketing channels, the comparison between the price paid by consumer and received by farmer has relatively low share, which is about 47.04 percent. From the results, it was shown that channel 8, which is the line via traditional market is the shortest line, has the lowest margins of Rp 1 306 and the highest farmer's share of 50.43%. In general, it can be concluded the PIBC‟s marketing channel has a lower margin than other marketing channels via agents outside the PIBC. The analysis of the land capacity in producer areas showed that 11 sub-districts in Karawang Regency have surplus land carrying capacity. It is Pangkalan, Tegalwaru, Talagasari, Rawamerta, Tempuran, Kutawaluya, Cilebar, Cibuaya, Tirtajaya, Batujaya, and Pakisjaya, while the other 19 sub-districts have deficit land carrying capacity. In general, Karawang Regency has deficit land carrying capacity (0.63). Especially, for rice land carrying capacity Karawang, however has surplus 3.78 points. Agricultural areas in Jakarta lies on several sub-districts i.e North Jakarta (Cilincing, Marunda, Kamal and Kamal Muara), West Jakarta (Pegadungan), and East Jakarta (PasarRebo, Cakung, Ciracas, and Cipayung). The area should be able to be protected, given the function of agricultural land in Jakarta as a green open space (RTH), as well as livelihood, and source of the availability of rice for most of the population in that area. Property right of the land should be considered due to the most farmers are sharecroppers in Jakarta.