Menyajikan beberapa artikel di Journal nasional dan Internasional
Welfare implications of intertemporal marketing margin manipulation
Thomas Kopp, Bernhard Brümmer, Zulkifli Alamsyah, Raja Sharah Fatricia
This study investigates the price transmission between international prices and the factories’ purchasing prices on a daily basis. An Auto-Regressive Asymmetric Error Correction Model is estimated to find evidence for asymmetric price transmission. In a subsequent step the rents that are redistributed from factories to farmers are calculated. The study then provides estimations of the size of this redistribution
under different scenarios. The results suggest that factories do indeed transmit prices asymmetrically, which has substantial welfare implications: around three million U.S. Dollars are annually redistributed from farmers to factories. If the price transmission was only half as asymmetric as it is observed, the majority of this redistribution was re-diverted.
Welfare implications of intertemporal marketing margin manipulation
Land-use change and livelihoods of non-farm households: The role of income
from employment in oil palm and rubber in rural Indonesia
Jonida Bou Dib, Vijesh V. Krishna, Zulkifli Alamsyah, Matin Qaim
Many tropical regions are experiencing massive land-use change that is often characterized by an expansion of oil palm at the expense of forests and more traditional forms of agricultural cropping. While implications of such land-use change for the environment and for local farm households were examined in previous research, possible effects on the livelihoods of non-farm households are not yet well understood. This study analyzes the role of different types of agricultural and non-agricultural employment income for non-farm households in rural Jambi, one of the hotspot regions of Indonesia’s recent oil palm boom. Data from a survey show that employment in rubber and oil palm are important livelihood components for non-farm households. Employment in oil palm is more lucrative than employment in rubber, so involvement in the oil palm sector as a laborer is positively associated with total household income. Regression models show that whether or not a household works in oil palm is largely determined by factors related to migration background, ethnicity, and the size of the village area grown with this crop. These results suggest that further expansion of the oil palm area will likely benefit non-farm households through gains in employment income. As non-farm households belong to the poorest segments of the rural population, these benefits should not be ignored when designing policies towards sustainable land use. Possible negative environmental and social externalities of further oil palm expansion are also discussed.
Land-use change and livelihoods of non-farm households
The Economics Behind an Ecological Crisis: Livelihood Effects of Oil
Palm Expansion in Sumatra, Indonesia
Christoph Kubitza, Vijesh V. Krishna, Zulkifli Alamsyah, Matin Qaim
While the negative ecological effects of the rapid expansion of oil palm in Southeast Asia are far-reaching and relatively widely studied, the socioeconomic consequences have received much less attention in the literature.We examine whether local farmers in Indonesia benefit from cultivating oil palm. We also look at the impact dynamics and possible spillover effects on other farmers. Our analysis builds on panel data collected from 680 farm households in Jambi Province, Sumatra. We show that oil palm cultivation has significant positive effects on farmers’ livelihoods. The economic gains allow farm households to increase their consumption. Oil palm has lower labor requirements than alternative crops. Hence, oil palm farmers can cultivate larger areas and also reallocate saved labor time to non-farm economic activities, which contributes to additional secondary gains. Policies aimed at regulating further oil palm area expansion will have to account for the economic benefits of this crop for the local population.
Livelihood Effects of Oil Palm Expansion
Land Property Rights, Agricultural Intensification, and Deforestation in
Indonesia
Christoph Kubitza, Vijesh V. Krishna, Kira Urban, Zulkifli Alamsyah, Matin Qaim
The expansion of agricultural land remains one of the main drivers of deforestation in tropical regions. Stronger land property rights could possibly enable farmers to increase input intensity and productivity on the already cultivated land, thus reducing incentives to expand their farms by deforesting additional land. This hypothesis is tested with data from a panel survey of farm households in Sumatra. The survey data are combined with satellite imageries to account for spatial patterns, such as historical forest locations. Results show that plots for which farmers hold formal land titles are cultivated more intensively and are more productive than untitled plots. However, due to land policy restrictions, farmers located at the historic forest margins often do not hold formal titles. Without land titles, these farmers are less able to intensify and more likely to expand into the surrounding forest land to increase agricultural output. Indeed, forest closeness and past deforestation activities by households are found to be positively associated with current farm size. In addition to improving farmer’s access to land titles for non-forest land, better recognition of customary land rights and more effective protection of forest land without recognized claims could be useful policy responses.
Land Property Rights, Agricultural Intensification, and Deforestation in Indonesia
Land-use change and income inequality in rural Indonesia
Jonida Bou Dib, Zulkifli Alamsyah, Matin Qaim
Many regions in Southeast Asia are experiencing massive land-use change. While areas covered with tropical forests and traditional agricultural crops, such as rubber, are shrinking, oil palm plantations are rapidly gaining ground. Recent studies have analyzed environmental effects of this land-use change. Relatively little is known about the socioeconomic implications. A few studies have examined economic effects of oil palm cultivation for particular groups of households, such as farmers, but broader effects for different types of rural households are not yet well understood. We address this research gap with data from farm and non-farm households in rural Jambi, one of the hotspots of Indonesia’s recent oil palm boom. On average, farm households have significantly higher incomes than non-farm households that often work as agricultural laborers on rubber and oil palm plantations. Both farm and non-farm households are better off in villages with a large share of the land under oil palm than in villages where relatively more rubber and other crops are grown. Oil palm does not seem to have significant effects on overall rural inequality. While oil palm cultivation contributes to increasing inequality among farmers, it tends to decrease income inequality among non-farm households through labor-market and employment effects.
Land-use change and income inequality in rural Indonesia
The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
Kuswanto Kuswanto, Zulkifli Alamsyah, Armandelis Armandelis, Zulfanetty Zulfanetty
This study aims to analyse the level of technical efficiency of rubber production and its impact on the welfare of rubber farmers in Jambi Province. The research was conducted in central area of rubber plantation in Jambi Province, namely Batanghari, Sarolangun, Tebo and Muaro Jambi. To explain the determinants of productivity and to analyse the efficiency of rubber production and the factors that influence it, Cobb-Douglas production function model using the stochastic frontier production function approach is used. Measuring the welfare of farmers using the farmers’ household income rate (FHIR) approach. The results showed that the average rubber farmers in the study area have not been efficient in allocating inputs and not yet prosperous production. Improving the technical efficiency of rubber production through increasing the number of young farmers up to 23% and increasing the farming experience by 5% can increase the FHIR of 1.33.
The impact of the efficiency of rubber production on welfare
Can the Tripartite Rubber Council manipulate international rubber prices?
Thomas Kopp, Bernhard Dalheimer, Zulkifli Alamsyah, Mirawati Yanita, Bernhard Brümmer
In contrast to the trend of a generally increasing liberalization of markets, agriculture remains one of the most protected sectors. In globally distributed production networks the effects of sector specific policies may spill over to other sectors and other countries. While the effects of these policy spill-overs are likely to be substantial, both conceptual and empirical work is surprisingly limited in the literature. This paper suggests an extension of the Gardner Model by two policy interventions to theoretically predict effects of exogenous policy shocks in one input market on price relations towards its substitutes. The economic model is then applied to the markets for natural and synthetic rubber which is an insightful example because the natural rubber market has been dominated by three big exporters who have collectively introduced policies to gain price control for decades. Results of a vector error correction analysis indicate that prices of natural rubber, synthetic rubber and crude oil are cointegrated. Both policies under consideration {an export tax and several measures to restrict supply}partly detached the natural from the synthetic rubber price in international markets. However, one of the policy measures might have produced effects detrimental to the intended targets.
Can the Tripartite Rubber Council Manipulate Rubber Price?
Agrarian change, livelihood dynamics and welfare outcomes: Evidence from plantation crop farmers in Indonesia.
Marlene Kühling, Zulkifli Alamsyah, Kibrom T. Sibhatu
In the tropical belt of Africa, Asia, and the Americas, smallholder farming is undergoing a significant transformation from subsistence-oriented to highly specialized and market-oriented plantation systems. While understanding the transition of livelihoods of plantation farm households over time is an important development goal, available empirical evidence is scant. This study provides the first quantitative evidence on the dynamics, transitions, and determinants of livelihood strategies linked to the crop choices of commercial farm households in the tropics. We use three-wave panel data of oil palm and rubber farmers from Indonesia for the empirics. Particular emphasis is placed on the trade-offs smallholders face in growing these two crops. Employing the dynamic livelihood strategy framework and Latent Markov Model estimations, we reveal that even highly specialized farm households pursue diversified livelihood strategies, and they actively switch between the
identified strategies. Over time, significant changes are observed in the composition of strategies, which continue to be dominated by oil palm-oriented and off-farm-based activities. Inter alia, climate anomalies and a decline in oil palm and rubber prices influence the dynamics and trajectories of the livelihood strategies. We also find that a larger farm size possibly hinders households’ labor allocation to more remunerative off-farm activities, implying that possessing a larger farm-land alone may not suffice for improving farmers’ wellbeing. We conclude by discussing the generalizability of our findings and providing implications for future research and policy making.
Agrarian change, livelihood dynamics and welfare outcomes
The impacts of oil palm plantations on local and migrant smallholders’ incomes
Diana Chalil, Riantri Barus, Zulkifli Alamsyah, Jullimursyida, Mawardati, Isfenti Sadalia.
In Indonesia, oil palm plantations have long affected income levels positively.
Furthermore, Indonesia has developed oil palm smallholdings in 1980 to improve rural incomes. The success of this program has attracted other farmers and migrants to further developed oil palm plantations. Those who collaborated with companies were known as scheme smallholdings, while the others are known as independent smallholdings. In general, the lack of professional assistance has caused independent smallholdings to perform lower than the scheme ones. In addition, on average, the migrants also performed better as they were familiar with the collective actions of group activity management. Using as many as 210 and 219 scheme and independent smallholders from the Provinces of North Sumatra, South Sumatra, Jambi and Riau, such assumption were tested using the ANOVA compare means test of the four groups, namely schemed local and migrant, and independent local and migrant. Comparisons between the smallholders’ incomes and the Regional Minimum Wages of each province were analysed. The results showed that oil palm plantations have significantly improved the smallholders’ incomes in all provinces, although the impacts were observed to be higher for the scheme-migrant smallholders, not only concerning income, but also for productivity and selling price. However, this was likely due to the difference between scheme and independent rather than locals and migrants. This was partly explained due to the collective actions of all migrant-schemed smallholders in both the input purchases and the output sales and around 50% of the local-schemed, while almost all independents did it individually.
Impacts of Oil Palm Plantation on Local and Migrant Smallholders’ Incomes
Oil palm contribution to SDGs achievement: a case study in main oil palm producing provinces in Indonesia
Zulkifli Alamsyah, Armen Mara, Neza Fadia Rayesa, Ernawati Hamid, Mirawati Yanita, Gina Fauzia, Dompak M.T. Napitupulu.
The development of oil palm plantations and their production is not only expected to generate foreign exchange for the country, but it is also expected to have a positive impact on the social and economic development of the community, which must be in line with the sustainable development goals (SDGs). The development of oil palm plantations that involves the people through the Nucleus Estate and Smallholder (NES or PIR) Scheme with its various variations has several weaknesses that are detrimental to farmers, causing various conflicts and weaken farmers’ bargaining position, unclear determination of plantation development costs and unclear criteria in determining the quality and price of fresh fruit bunches (FFB) produced by farmers. This study aims to study whether oil palm development is able to improve socio-economic conditions of the people in Indonesia, mainly in main oil palm producing provinces in accordance with the SDGs targets, including no poverty (Goal-1), reduced inequality (Goal-10), and good health and wellbeing (Goal-3). The research was carried out on a national level, especially in oil palm producing provinces in Indonesia. The data used are time series data for the period of 1990 to 2020. The analysis model used is a regression model where oil palm area as an independent variable and the SDGs indicators as dependent variables. The results showed that oil palm development could significantly reduce the number of poor people in both rural and urban areas, had not been able to reduce income inequality even in 4 provinces significantly increased income inequality, and had no effect on improving people’s health and wellbeing based on the human development index.
Oil palm contribution to SDGs achievement (E3S Web of Conferences_2023)