Technical efficiency of rice productivity in Indonesia

Indonesian Center for Agricultural Socio-Economic and Policy Studies, Ministry of Agriculture, Bogor, Indonesia

^* Corresponding author: juliaforcinasinuraya@gmail.com

Abstract

The government has provided a lot of assistance to increase rice productivity. However, studies in this area are still rare. This study aims to determine the level of technical efficiency of various types of agricultural machinery assistance and subsidised fertilisers for rice productivity. The study method used is stochastic frontier analysis at the provincial level based on realisation data of government assistance in 2017–2021 on rice productivity for 2018–2021. The technical efficiency value of rice productivity in 2018–2021 has been efficient. The technical efficiency average is 0.82 and decreased by 0.44% annually. The variables that have a significant effect are subsidised nitrogen fertiliser, subsidised phosphorus fertiliser, small combine harvesters (CH), vertical dryers (VD), and small and medium-scale rice milling units (RMU). Subsidised nitrogen fertilisers and medium-scale RMU are significant with a positive sign, while phosphor, small CH, vertical dryer, and small-scale RMU are significant with a negative sign. Based on the results, increasing rice productivity can be carried out by adding nitrogen fertiliser assistance, increasing medium-scale RMUs, reducing phosphorus elemental fertilisers, not adding VD (unless integrated with medium-scale RMUs), and small CH due to no longer being effective in increasing rice productivity.