A System Dynan1ics Sin1ulation of Rice Agroindustry Develop1nent by Divestn1ent Pattern for Increasing Rice Production and Farmer Income

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Joum.11 of lnfomi.11100 fJl¥inttring and Apphc;uion' ISSN ＲｾｾＴＭＵＷＱ＼ｾ＠ !print) IS<;"l 2225--0506 fonlmt:l

Vol.4, No.12. 2014

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A System Dynan1ics Sin1ulation of Rice Agroindustry

Develop1nent

by

Divestn1ent Pattern

for Increasing Rice

Production and Farmer

Income

Abc;tr.ict

faqih U<lin1

*.

ｾｬ｡ｲｩｭｩｮ Ｒ_{Ｌ＠ Sukardi}2

, Agus Buono' and I lariyadi Halidi

I. ａｾｲｲｯｩｮ､ｵｾｴｲｩ｡ｬ＠ ｔｾ｣ｨｮｯｬｯｧｹ＠ Study Program. Graduate S1.hool of Bogor Agrkulrural University. 2. Department cl ｾｾｲｯｩｮ､ｵｳｭＮｩｬ＠ Ti:chnoll>gr, Faculty of A£ricult11ml lechnology.

Bogo1 Agricultural Univc1 l>il}

3. Department of Computer Science, Faculty of ｍ｡ｴｨ･ｭ｡ｴｩｬＮＮｾ＠ and Natural Science, Bogor Agricultural University

-t

:'\ational Logictics Board, Jakarta

*

E-mail of the corresponding author: fauihudin58Cn'y::ihoo.wm

About 60 pe11.cnt of world ｰｯｰｵｬ｡ｴｩｯｮｾ＠ and most of Indonesian people, rice i' a staple food that ｭｵｾｴ＠ be available thrnughout the year. TI1erefore the exilttem:e of a rice milb for rice production become vital. The rice mill\ need to be developed continually in order to support an increasing of ､ｯｮｾｴｩ｣＠ rice production. To increase rice

produclioo. postharvest loss can be reduced b:. replacing the old rice

mills

with the

modem

ones. By

divestment pattern. a group of farmers can own and operate a rice ₁mill. so they get an additional income from the opcr:ition of the rice mill. ＱＱｾ＠ main objectiYe of this research was 10 findout tilt: best scenario for a rice agroinduc;lr) dc\'elopment through dne,tmcnt ol 0\\11cn.hip to the group of

farmers.

A system dynam.ics -;imulation methodology wa-; applied in thi.., re-.earch. with a ca.,o;;c 'tud> in CianJur Di,trict as a one of m:un area nee producer m \\bt Ja\'a. The result from syMem dynamic, simulation c;howed that the imestment of 10 units of nee mill per year along 10 years by divestmcn1 paucm will developed 2 12 ｵｮｩｾ＠ of rice mill that enough to mill the padd) produced by Cianjur Oi,llict farmer\ groups.

Kt!}\\Ords: rice, rice agroindUSlr)'. divestment. system dynamics simulation

I. Introduction

Indonesia is located around equator with wet tropical climate. This condition makes lhis area has long sun sine lhroughout year. and more rain intensity. between 700-4000 mm. This condition support fanner to develop

ｶ｡ｮｯｵｾ＠ of pl.mtation. poultry and fhhcr). TilC lhherman could catch Lhe fish almost in a whole year. ｂｾ＠ on the conditions above. Indone<;ia suppposed to have productive agriculture and strong agroinduslry with various lropical producb.

Dillon (2009). stated lh3t an in\'estment in agroindustrial seccor would douhles agr\cullual ｾｨ｡ｲ･＠ 10 national

economic. fil"llL lht: need of incr.!3Sing import commodity subtitute. When people's income decrease, they will change iu. con5ulllp(ion material to 01her wtuch is cheaper. Second, through increasing the e'(port of agromdu!>t1aJ product-., it will produce more nalional income. The big market opportunity. both in import and export, can be u<;ed to increase economical growth. especially in the rural area.

l11e ､･Ｌ･ｬｯｰｾｮｴ＠ through modernization of agromdu<;trial sector. at lea.c;t it ,,;11 produce more added value of agroindu.,mJI pmdu'"h and ah,orping more employments (Ka..-;em & Thapa. 20 12). Developing of agrnmdusoial sector \\ill ｾｵｲｮｵｬ｡ｬ･＠ bu.,ine'' de,·clopmcnt of both ::igricuhure and agroindusLrial product-..

Ril:e is one of the moM strategic commodity within Indonesian economic. Therefore this rc.:scarch especially conc;emed with rice processing indu!>tr). Rice milling wa., taken as an example. Most of rice are used for fulfill staple food of population. A lirtle portion are abo used a-. raw material of agroindu-;try, such as food industry, ph:trmaceutical and cosmetics.

The urgency ol rice in lndone<;ian econom) and food ｾｷｩｬｹ＠ has been concerned of ｲ｣ｾｰ･｣ｴｩ｜Ｇ･＠ expert re:.carcher and commumt) at large. Rice have been a basic foods which is ｩｌ ｾ＠ needs always increase as the increasing of people population. If the rice b sufficient in the market in affordable price, it will produce safe condition in the

Joum:il of lnform:llion Engi!ICl"ring and ApplicJtiom ISSN 2224-5182 (print) ISSN 2225-0506 tonltne)

Vol.'1, No.t2, 2014

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i.ocicty. In reverse, if !here j, a price volatility. and the stock is limited, therefore will produce a social unrei.t. (Patiwiri, 2006).

Domestic nee production is not sufticient to fulfill domestic ｮ･･､ＮｾＮ＠ had already makes Indonesia become the importer of rice. Even more, otha foods commodity also be imported in high quantity, therefore make this agrarian country become net ｦｯｯ､ｾ＠ impo1 La (Abubakar, 2007).

Rice based agroindustry development u<.ing 1he divestment p:lllem ｩｾ＠ expected to be easier for implememation, improvo:: farmer income, dome)\tic rice production and more efficem in development financing. As the resume, re1'earch aboul rice bac;cd agroindw..try development with di\'eStment pattern is very urgent to be started, to produce the system model of agroindusrry de,·etopment that can improve farmer income. domestic rice production. and rice based agroindustry de\'elopmcm at minimum cost.

Titc develpoment of modem rice mill owned by farmers group with divestment mchod, will influence the farmer

income and rice production. Many p:u-ameters will dynamically interact according to time and condition. To predict fucure values sever.ii methods can be used such as time series method (Herman et al., 2014) and by using dynamics simulation model (Stennan. 2000). Several researchers have been done on system dynamics simulation to lindout a solutions of dynamics problem. Somantri and TI1ahir (2007), used thi!> technique to dete1mine a dynamics system analysis of rice a\'ailability in Merauke, East Indonesia. Basith (2012), de\'eloped a system dynamic!> modeling for national rice ｾｴｯ｣ｫ Ｎ＠ Amk and Scoorvogd (2006) worked with a topic of agricultural systems. with nature a complex and d)11amic, being made up of interacting bio-physical and human sub-systems. The main objective of this re!>earch wai. to find the best scenario for rice agroindustry development.

The

detailed objectives were:

I . To simulate the increasing of modem rice mill number when divestment pattern applied.

2.

To simulate

the

increasing

of

additional farmer income and rice production follo\\fog

the

rice mill development with diYestmem pJuem.

2. Methodology

2.1 Framework of Research

Rice is as the main staple food of Indonesian populaLion. and therefore it is a strategic commodity that need special auention in cultivation. supply. distribution. price and quality. In term of volume. it must always be

sufficient to avoid a social and economical problems. It is a risky policy to depend on import. The rice exporter countries have high surplus of rice not automaticaUy will to export its rice to international market. They

are

also will maintenance rice stocks to anticipate their domestic immediate needs.

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0

Joum:il of lnfonm11ion Fngml'\.'nng and ａｰｰｨｾｴｩｯｮﾷ＠

IC\C\N 2224-S7R'2 l.J1fin1) ISS'I/ Ｚｭｾ Ｍ ｏＧｩＰＶ＠ (onhn<!) Vol.4. No.12. 2014

ｾｩ ｩ Ｇｴ＠ ... &N !,.

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ｬｮ｣Ｑ･ＺｮｾｾｾｾｯＭ

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Rice based

ｾ Ｍ ｯＭ ､ Ｍ ･［［［＠

, - la..,oindusuv with green, l>ost harvest loss reduction & mcreas'l

L _____

....

ＭＭＮＭ ｾ

Ｓ＠

ｾ［･ＱｾＮ＠

,, ___

J

. . . ..

-

----

.,

Incre:i.sing fanner income b\' rice

j

I

nulling

urut O"-

nershlp

i

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-·

: ｾ＠ • I

j

technology

l

,

I

I

I

!

Hard work for fanneri

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ｾＭＭＭﾷＭＭＭＭＭＭ Ｍ ＭＭＢﾷ Ｇ＠

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Di,·esution Pattern , K'rod';m - nee mill O\'\ned by.famm: 1

• F:i.nners income ii1crea se 1

ｾ＠

...

ｾｾ･＠

ｰｲｯ､ｵｾ｣ｲｾ

ＭＭＮｊ＠

Fig.urc I. The research frame\\ork

2.2 S)'stem Dynamics Si11111/c11i1m

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System dynamics was originally designated 10 ..;ol\·e problem faced by indu,lfies (Daalen and Thissen. 200 I: :\fuhammdi et ul, 2001 ). ａｾ＠ iL<; name. dynamic o;ystem dealc; with complex and dynamic system, whether thi-; :.ys1cm i:. stable or not. nuc.1uatc. gro·wth. de-growth. or ｾｴ｡ｹ＠ in the equilibrium condition. Dynamic problem 1s the problem th:it corel:ite to quantity ｜ｏｉｊｴｩｬＱＱｾ＠ of a Ya.ri:ible lh:u's obsen·ed with lhe ch:inge of time. In nddiuon, the problem have feedback corel:ition or feedback system.

ll1e dcvclopmnet of a sy tcm ､ｹｮ｡ｭｩＨｾ＠ 'imulJtion follow'> a generic four-\teps. chcrc are: conceptualization. formufation, verification and Yalidation. and poliq implemcnwcion (Sterm.in 2000 Daalen and This.sen, 200 I).

2.2. I Cnnct'ptuali:orirm

Currently. the rice posthane:-.t lo-,, i'> ｾｴｩｬｬ＠ high. This loss happen since har\'C!>ting. threshing, transporting. drying, milling. nnd s1orage. ToLal domestic Yolume of rice in 20 10 w:is 38 million tons. if lhe los.' can be ､｣｣ｲ･｡ｾ･､＠ by

$<:'(-. it means can produce more ＮＬｵｰｰｬｾ＠ in rice :ihout 1.9 million tons. ll i-. a huge 'olume of rice.

Efforts to reduce the po\lharvcSl loss can he done by two ways that support each other, they are rice fam1cr cmpowcm1ent and rice ba.-.ed agroindusl!) dcvclopmenL The empowem1ent is a cruci:il i.tep to increase the farmer proi.pcrity. Through thii. cmpowcm1cnc, farmers will be able 10 apply certain ｭ･｡ｾｵｲ･ｳ＠ 10 reduce and aware of the importance lO decrease lhe ｰｯｾｬｨ｡ｲｶ･ｳ ｴ＠ loss. The farmer are requested to work more carefully in lhe post ｨ｡ｲｶｾ ｴ＠ handling.

The scope of fanner CnlpO\\Crment con'>ht of three aspects, they are: I. Capacity building or incre:i...e the farmer capacity.

'.!. Hardskill irnprO\cmem. lo ｭｾｴ･ｲ＠ the technique of rice han•csting. thre!>hing, drying. milling.

packaging, storage. and lramportrng

3. Sof1,kill eruichmi.:m. lo ｾｮｨ｡ｮ｣｣Ｚ＠ the management of busines' capa1.:i1y including c'tablishrnent of nee milling industry.

The ne»t 111ep i' 10 de\elop Lhc rice 1'J--cd ｡ｧｲｯｩｮ､ｵＮｾｯＺ＠ which b de,1gned by adopting green technology prin.:ipal'>:

I. Fconomic profitJhili1y.

2. Quality impro\ emcnc of rice. and 3. Environmental prott:ctiun.

These green technology pnnciple' can be applied in lhi' agroindu .. 1ry de\'elopment: I. The main activi11e.;

[image:4.622.13.558.55.339.2]

Jot1mal of lnlonn311on h11f1necring und Application' ISS1' :U'..'.4 57li:? lpnno ISSN :?:u.5-(1506 (1"1lmc)

\',.1 J l'n 12. 101.1

b. Production of

nee

flour. which produced from 'phunl

nee.

c.

Selling of rice bran. a.\ rau. material of feed ｩｮ､ｵｾｴｲｹＮ＠

d. Co:npo!>ling

or

husk 10 producing organic lcr111t1cr.

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2. The utililalion of \\'Usll.: ht:at of driving engine. The ｵｾｧ｣＠ of waler cooling ｾＩＧｬ･ｲｮ＠ a' a cooler nf engine

will be replaled b} radiator. The heat relca.,ed will be flew lo the paddy dryer.

3. The ulilization of the green hou.'e effect heat. The di;. ing room of padd} with greenhouse effect heat '' needed to be provided to solved the drying problem especially duiing rainy season. By pro\'iding the drying f:ldlitics '1l> ｾｴ｡ｴ･､＠ in point 2 and 3. it is cxp;:cleli the drying process \\ill no longer ob-.1ruc1ed

especially during ramy ｾ｡ｳｯｮＮ＠ Actuall)', to build a fam1cr based agroinduslry is not an ca'} one, there would be ｾｯｭ･＠ ｣ｯｮｾｴｲ｡ｩｮｩｮｧ＠ ｯ｢ｾ ｴ ｡｣ｬ･ｳＮ＠ The divescacion pattern would eliminate the problem and lhc

limitation. This paucm is initiated by non profil bodies 01 ｩｮｶ･ｳｴｯｲｾ＠ to build the agroindustry.

l\kanwhile, the fam1en. mll!>t be prepared to conduct farmer empowerment program. After agroindustry ha'c been wdl established and beneficial, then ｦ｡ｮｮ｣ｾ＠ can take O\'er the owncn.hap. The inve::.tor will c:i::il and then move to another location \\ith more modem design. With thi-; pauem agroindustric-; can gradually be developed that O\\ ned ｢ｾ＠ nall\'c ｦ｡ｲｭ･ｲｾ＠ m I.he spec11ic locauon. In

bnef. the din!Sl:lllon paucm preference 1s done by ha.(cd on:

I The ｦｯｮｮ･ｲｾ＠ are pre:in:d lo participate for owning, oper.1ting, and taking the bcm:fil of the agromdumy.

2. ｬｭ･ｾｴｯｲ＠ can ex11 (relea.;e a part of whole 'hare'-) to the farmen- and paralcll) move Lo other

ｬｯ｣｡ｴｩ ｯ ｮｾ Ｎ＠

3. The co<;t 10 build modem agroindustry unit can he more easy nationally.

4. The cost of fam1cr empowcnnent program is e\pccicd 10 come from local government

ｾ＠ diveswuon mechanism can be seen in the Figure 2.

Im· est or \ p:cm !To fit Bod\")j

-

.

puring

Rice ｾｦｩｬｬｩｮｧ＠

H

ｓ｜ＢｳｴｴｭａｮＡＡＺＮＭ｟ｾＭ

ｾＱｯ､ｵｮｒｩ｣･＠

Mills

!

I

ｆ｡ｮｮ･ｮ

Ｇ ｾｦｯ､･ｭ＠

l

L _

｟Ａｩｾ｣＠

ｾ

ＭＭﾷ＠

ｲＭＭＭ ﾷ Ｍ ｲｾ Ｍ

..

1

; Empowerment

I

ｾ＠

...

ＡＡＡ＿Ｎｾｾ＠

_j

ｉｮｮｾｯｲ＠ exit and mon to other locationj

ｾＱｴｨ＠

more modem design

;

L.. ... -

... - .... ·- ... -... _ .. _____ .]

Figure 2. A di\e!>tment pauem for modem rice mill development

1.1.1 Mude/ Fonnu/a11011

Rice milling unit quantity vai i.ihle ''hich i-. built ､ｨ｣ｾｴ｡ｬｩ｜Ｇ･ｬｹ＠ corelatc to increasing of farmers income \artablc

ane nee producti\'it}. This corel:11ion ｣ｨ｡ｮｾｩｮｧ＠ ｢ｾ＠ time variable. Therefore dynamics system simulation can be

[image:5.626.9.577.31.635.2]

Journal ot lnlormalion ｬＺＮｮｾＱｮｲ｣ｲｭｪＺＧ＠ and Applicat1041, ISSN 2224-:>?b.! (pnntl ISS'.'l 2225-0506 (onhncl

Vol.J, No. ｉｾ＠ 201.1

Figtuc:' ｾＮｃ｡ｷＮ｡ｬＭｬｯｯｰ＠ diagram of rice agroim.lu,tl") de,elopmem ｢ｾ＠ diYestment pattern

W\\ \\ ,11 ＢｴｨＡＮｏｦｾ＠

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The conditions of a modem nee mill design, rough rice tr:ll1'-UCtion. inve,tmem and d1vesunenl and asumptions

are as follows: • Raw Material

lllere are two terminologies of rough rice, name ly dry-at-hane'-1 rough rice (dhr) and dry-to-mill rough rice (drnr}. A dhr contain high mo1:-1ure contcnL about 25 '}. and dmr contain of 14 'k moisture CPatiwin. 2006.

Thahir, 20 I 0). • Milling Capacit}

Thi!> rice mill is ､｣ｾｩｧｮ･､＠ at miliing capacity of I ton dmr p.-:r hour or 8 tons dmr per day (operation time i!> 8 hour

per

day).

So the milling

capacity

is 2-tOO

tons

dmr

per year, or

2755

tons dhr

per year.

• Rou2h Rice Tran-.action

The rough rice 1::. supplied by local farmer group m the fonn of dhr. The market pnce of dhr wa!> ｒｾ ＬＭ per kg. An incentive prod11ction ot Rp500,- per kg dhr will be ghen lo farmers. a'> stimulant for lifling up rough rice production.

• tmc,unenc and ｄＱｙ･ｾ ｴｭ ･ｮＱ＠

A non-profit bod) develop::. a mcxlt:rn rice miU wilh iota.I tn' e'tment .ind working capital of Rp 5.4 billion per

unil TI11-. n.:e mill will he ｊｬ｜･ｾｴ＠ 10 local fanner group \\ith ｲｊｾｭ･ｮｴ＠ inqJflment of 4 years without ｩｮｴ･ｲ･ｾｉ＠ The wun:c tund to PJ) thh Jl\c,unent ban mccnti\C' rrodu.:uon of dhr.

• ａｾｵｭｰｵｯｮｾ＠

A modem machinery will he '"'tall.!d to lhe rice mill. l-0 poh-.hed rice yield v.ill increase. a:.umed the figure ｩｾ＠

2 't-. and by better po-;lharvest handling reduce a rough rice lo-.s by 5 <fl-. In the end of fiscal year, all net profit of rice mill operation will be trano;fer 10 farmers as an additional income From the financial analyses (profit and lost balance statement) of the rice mill. the profit reach Rp 800 nu Ilion per year.

Joum;il ot lnrorm.111on F11gincrnn• .mJ Appli(ation' ISSN ＲＲｾＴＭＵＷ｢ｾ＠ iprmt) l!:>S:-. ::!!l)·ll5061oohncl

Vol.4 No.12. :?O 11

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[image:7.622.21.588.80.792.2]

...

.. .

Figure 4. Forrc!>ter diagr.un of inlerrelaLion between rice mill number. increasing of additional farmer income, increasing of rice produclion and another variables

The descripuon of

parameter

or variable

arc as

follows:

adhrr_nnn : adJilional of dry-10-harvest-rough rice al Ile!\\ nee mill. ｬｯｮｾｹ･｡ｲ＠

ad1TUT frm : addiuon.:tl of dry-al-harvest rough rice al farmeTh' rice mill. tons/year afi_frm

afi_nrm

apr

:l\'_dhrr _nrm

3\_dmrr 1m1

C!>

dhrr_lrrn

fm1

in\

iy_pr n_im

nrm

odnn

p_nrm pay_m, plr

: additional for farmer income al fam1ers' rice mill. billion rupiahs/year : additional farmer income at new rice mill. billion rupiahc;/year : addit1unal of polished rice, tons/year

· adJi1iorul value of dry-at-harwst rough rice a1 OC\\ nee mill. billion rup1ahvyc:ir

: addnionJI \'3luc of dry-a1-harvei.1 rough ｮｾ ･＠ at farmer<.' nee mill. billion rupiahi./year : ch:inge of rice mills ｓ ｬ｡ｴｬｌ ｾＮ＠ uni IS/year

: ､ｾ＠ -at-har.c:.l rough rice at farmers' rice mill. 1ori:-. farme1ori:-.1ori:-.,,· rice mill. ｵｮｩｾ＠

· imestment. u111ts/year

: ｩｮ｣ｲ･ ｡ｾｩ ｮ ｧ＠ yidJ of polished rice. tons · ne" tn\'estmenl, units/year

·new rice mill. units

· out of date rice mill. unite;

: profit of new rice mill. billion rupiahs/year : ｰ｡ｾｭ･ｮｩ＠ i11'1allment. year'

JoumJI ot lnfonnation f'nfmet"r ing and Application' ISSN 2214 ·:> 7b:! lpnnl) l'i<\N ＢＧＲＲＮｾＭＰＧｩＰＶ＠ lonlinl") Vol4,l\ol2 ::01.1

pre

r_lll\'

rpi_frm

rpi_m 111

t_adhrr

t_apr

t_dhrr c_dmrr t_pr

1_m1

: polished rice equivale nt, ton-.

: reinvestment. uniL<Jyea1

. m.c pto<lUl.tion incentive: al ｦ｡ｲｭ｣Ａｲｾﾷ＠ ric.e mill , billion rupiahs/year

. rkc: prodction incentive at new nee mill, bil lion ｲｵｰｩ｡ｨｾｹ･｡ｲ＠

: tow I of add1uonal dry-at-harvest rough rice.ton'

; totJI of additional polished rice, ton' : lllt.il of dry-at-harvest rough rice, ton' : tot:il dry-to 111111 rough rice, ton!>

: lOtJI of polished rice, tons

: 1<11;.il of nee mill. un1b

TI1e implemented cquauon'\ into the simulation software of this model arc as follo\\S:

init frn1 = 0

now fm1

=

-dt*o<lrm +dt*cs

init nrm

=

0

now nrm

=

-dt•c, +dt"ill\

aux cs= nnn/pay_ins aux inv = r_in\'+n_inv

aux adhrr_nm1

=

plr*nm1*2755 au.'< admrr_fnn"' ptr•dhrrJrm aux ali_frm = rpi frm+av_dmrr_rrm

aux ali_nrm

=

111i_nrm+a\ dhrr_nrm+p_nnn-5.4*r_inv au.\ apr

=

l)_pr• t.

rr

au.x a\_Jhrr_nrm

=

adhrr_nnn*0.00-15 au.x av_d mrr_frm

=

admn-_frm•0.()()..15 au.x dhn _frm

=

frm*'.!755

au.x p_nm1

=

nnn*O.S

aux pre= t_adhn' 2-lCXJ/2755*0.67 au.'< r_inv

=

nmllpay_ins

au:< rpi_fm1 = fm14 _{I A}

allx rpi_nrm

=

nrrn• 1..i allx t adhrr = plr*1_dhrr au."< t _apr = pre+apr aux t_:1hrr

=

um•'.!755 aux t_Jmrr

=

t_dhrr*:!-lOOf.!755

au"I: t_pr = t_dmrr•0.67

au"\ t . nn

=

nml+fm1 Const OOffil = 0 corut iy pr= 0.02 const n_ill\

=

15

ｃｏｾｴ＠ ｰ｡ｾ｟ｩｮＬ＠

=

4

｣ｯｮｾｴ＠ rlr

=

0.05

2.2.3 I 'cnfirnw111 a11J I hliJa1io11

\\ ｜｜Ｇ｜｜Ｌｬｴ｜ｬｾＮＨｬＨｾ＠

I ' II

HSlE

The abo'e cotKeptual mo<l.:I!> have been \alidated ｢ｾ＠ face method. Bcfon.: the models operationally n ltdated, the model must be verified. A cht!ck mu:,,t be perfom1cd to en,ure that no errors have been mad!.! in representi ng

the model in the computer. AnOLher very important check is the dimensional consbtency check. The right-side

and the left-side of C\ery equauons must match in 1he tem1 of the dime nsions (D.ialen & Th1s-.cn. 200 1 ). All of equauon' and di1nen,1on' in this model have been checked carefully. and no ･ｲｲｯｾ＠ have bt.--en made in the model. TI1creforc. validatl\1n l l l the model have been done with facing method by se\'eral experts that match in their

Journal of lnlomw.1100 F.ngin«r ong and Applic:uinn' ISSN ＲＲＲＴ ＭＵＷｾ＠ lprin1) ISSN 2225.zy;06 (onlinl!) Vol.4. l\o.12. 201-l

cxperlt\c and :.rnpc of thh research.

3. Rcsu ll'i und ｄｩｾｾｩｵｮ＠

Lll l

as

TE

A rice ba,ed agioindu,trial development needs abundant financial support. In other-hand, fanncr.. that inserted in this agroindu\lry, haw lack of capital (Sumaiy:mto and Nurmana.f, 2007) and managerial skill. To 'ohe ｴｨｩｾ＠

problem . .i dc\'clopment "ith dive:.tment method can be used. One unit of modem rice mill is de\'clopcd. and to be di\'C!'-ted to local farmer group when operation is running well. The payment of the divcstation ｩｾ＠ used to develop anOLher rice mill. namely rollmg method in inestment or reinvestment

Cianjur District a<; one of mam nee production region 111 West Ja\'a, have potential rough rice production about 600 000 ton' per ye3!. Thi' region need about 200 units of modem rice mill. \\ith milling capacit) of 3000 ton' rough rice per unit per year. If the rice mill de\'eloped by ordinary method. with allocation of 5 unit'> per }Car. ill>

take too long umc m compleuon. about 40 ycras. By divestment method, the completion lime can he fasten. due to the u'e rollini? in,·c,tment method. There arc two factorl> that have highl> and ､ｩｮ｡ｭＱ｣Ｎ｡ｬｬｾ＠ interaction.,, namely fund alkxation and co111pletio11 ume.

Con,.ider 10 the mentioned conJitions. that funding allocation is critical and limiting factor. llircL of !>Ccnarim. \\ere arr.mi!ed. ｮｊｭ｣ｬｾ＠ <.eenario with 'mall. medium and ma.c;c;i\e ｩｮｶ ･ｾｴｭ･ｮｌＧ｜Ｌ＠ with allocauon of 5. JO and 15

ｵｮｩｴｾ＠ of nee null per year respectively.

J.l Scnumn I

ln thil> scenario. fund for developing rice mill ts allocated for

5

units per year. or equivalent with 5 ｴｩｭ ･ｾ＠ Rp 5.4

billion. totally Rp 27 billion per year. Tiie developed rice mill divested to a local farmer grnup \\ilh payment mi.tallmcm for 4 ｹ･｡ｲｾＮ＠ Ai.sumcd that all of net profit the nee mill operation given to the f.i.nner rroup. To individual fam11:r also given an incentive of RpSOO.- per kg rough rice as stimulant for increasing rough rice production. Fmm both -.ource of income ... farmer group' pay the divestment of rice mill. For th1'\ <;cenario. the simula11on result ill sho" n in Fig. 5.

'

_ 1_ ｮ｟ｲ ｾＮ＠

.,_

-2- .. '

! J I S

Figure 5 The growth of rice mill numlxr al the allocation of 5 unit.:. p.!r ｾ･｡ｲ＠

.'

The 1me ... t.ment 11' conducted at 5 units of rice mill IX' year coni.tantly. 8) ､ｩｙ･ｾｵｮ･ｮｴ＠ and reir1,·e-.tment method. the numh.:!r of nc:'' ｮｾ･＠ mill inaeased (line no.2 m Fig 5). and the nwnbcr of total rice mill inc1eased rapidly. To reach of:!()() umh rice null \\ 111 be completed in I 5 yea1 \, which is faster than ordinal) meLhod of 40 ycan.. The rate of aJJitional fanners in..:omc b shown in Figure 6. The term of adJ11ional farmers mcomc b more simpl} than total ｦ｡ｲｭ･ｲｾ＠ income. Garcia-Alon\O

er al.

(2009) stated thaL the ｰｲｯ｣･｜ｾ＠ of fam1 gros!-. margin detennina1ion i' complicated and expensive because it j, ｮ｣｣･ｾｳＺＮ｡ｲｹ＠ to find the value of all the input), and

ｯｵｴｰｵｴｾ＠ produced.

JoumJI of lnfr11 nu1i1>n ｆｮｾｩｭｷｩｮｧ＠ and Arr>lu::uu.>n' bS1' ＲＺ＿ｾＴＭＵＷＱＱＺＡ＠ lpnnll ISSI\ 1225..0"i06 (ool1ne ) Vol.4, l\o.12, 2014

ｾ｜｜＠ ｩｩＧｬ｜Ｎｬｬｦｾｾ＠

1.1 I I

usTE

abundam i.uppty m lhe market. They 5ell their produce in unhusked form, wi1hom 1.toring an} qocks for their own need. ·1 he low revenue f101111 ice p1o<luction impliel> the difficulties in lultilling their everyday living needs. So. an) additional incomes is vcr) impo1tdnt for them. TI1e existence of modem nee nllll ｩｾ＠ ､｣ｾＱｦｮ｣､＠ to create a secure addition:it incomes for them as an cl tort to improve their wdfare.

·1 he magmcude of individual formcri. aJd1tional im:omei. bai.ed on rough rice production' and rice mill status. In the lir!-.l year. they mthl pay their rice null di\e\lauon. so in ｴｨｩｾ＠ period they recieve only partial Jdd1onal income. After ll1ur year:-•. therdore lhe nee mill ｷ｡ｾ＠ fully paid. they recieve lul additional ｩｮ ｣ｯ ｭ･ｾＮ＠

0 5 10

Y e a r \

15

_

1_afi_nnn

ｾ＠ 3fi_fm1

Figure 6. The additional fam1cr ｩｮ｣ｯｮｾ＠ profile at the allocation of 5 units rice mill p.:r year

Total additional farmers income alwayi. ｩｮ｣ｲ･ｾ･ Ｎ＠ and at the end of development period. after 15 years. the magnitudes of ｡､､ｩｴｩｾＩｮ｡ｬ＠ incomes reached of Rpl 10 billion per year for the

nev.

rice mill group. and Rp266 billion per year for the fam1ers' rice mill group.

ｐｯｾｴｨＮｩｲｶ･ＺＭｬ＠ ｊｯＬｾ｣Ｇ＠ ul rile in Indonesia i' \llll high. ll is assumed that by practicing bener har;c,ting. lhrcshing. tran,pon1ng .rnd drying wilt reduce lhe lo,,es of 5c"· similarly by improvement of milling ｰｲｾ･ＺＮＡＮ＠ iTh.:rease the yield of 2nc. Thus. the production impro\ emenl, obtained an additional product m the fom1 of polished rice :l'>

showed in Figure 7. The magnitude of addjtion.il polished rice will increase. corelated v.ith the growth of modem rice null number. At the end of development period. the magnitude of additional poliiihcd rice Wiii reach

23 206 ton' per year.

-

..

ｾ＠

Y e a r s

Figure 7. The i;ro,,1h ot additional poli:.hed rice production

.it th.: alloca1ion of 5 units per year

Al tli.: emi of th.! program. in the ｾ･｡ｲ＠ uf I

5"'.

:.irn:c the ye.lr, the in\'ested fund can be withdra'' •II and then bring 11 for ､･ｙ･ｬｯｰｭｾﾷｮｴ＠ funding in another ri:gioni.. This is the advantage of the dc,·elopmcm by divcMment pattern, the fund can be wilhdrawal after completion the program

J.2 &e11ano II

In thi' 1;cena1io. the invesunem fund j, allocated t\\ice of <,ccnario l. there will be 10 time<, Rp5.4 billion. totally Rp54 billion per year. the completion 11me is ｦ｡ｾ ｴ ･ｲ Ｎ＠ 10 )ears onl). The gro\\th of modem rice null number. the increasing of additional ｦ｡ｲｭ･ｲｾ＠ iocomc. and additional of rice production b. shown in 1he Fiuurt!!> 8, 9 and IO respectively. Starting from the year of 11 "'. the: rice milling became stable. equilibrium ,,·ith ｲｾｧ ｨ＠ rice supply.

Ｑ｣ｾＱＱＱＱ ｊ ｉ＠ 111 l11f1• mJ11on ｅｮｾＱｮﾫｮｮｧ＠ anct Applicaltoo'

IS'iN ＲｾｾＴＭ ｾ ＷＸｾ＠ (printJ l'i'iN ＲＲＲＵＭＰｾ＠ lonhnc )

Vol.4, t-=o.12. ＺＺＡＰＱｾ＠

"'\'\\ ,l• \ l'l!.l'l_a!

I I 11

asTE

:cc I

［｣ｾ＠

..

_! _ n_ir..·

=

Ｚ･ ｾ＠

=

-3 -ilf'.:.

100

c:'

0 .

IC

[image:11.616.143.502.70.483.2]

)" t l I S

Figure 8. The growth of rice mill number al the allocation of lO unih per year

:,;

,

=-':I

""'-;?. .. v.

0 10

[image:11.616.161.443.309.477.2]

Y r a r s

Figure 9. The formation of additional fam1er income at the allocation of I 0 uni LS per year

/

ＧＧＢｾ＠

,.

/

/

JU ｣ｾﾷ＠

,/

•

_...r

;,..

/

....

ｲｾＭＭ ｊ＠ ....

'"j

/

.. ... ,.

..

/

. --

ｾｉ＠

10

..

t a t s

Figu1e 10. The gTO\\lh of aJd111onal ｰｯｬｩｾｨ･ｊ＠ nee production at the allo.:a1ion of 10 ｵｮｩｾ＠ per year

3.3 Scnu11w I//

For 1his \Ccnano. the allocated in\'esimem fund ｩｾ＠ three limes of scenario l, 101al of Rp8 I billion per >·ear. the

completion 11111e ｩｾ＠ seven ｹ･｡ｲｾ＠ and half only. The demand and i-upply of rough rice ｩｾ＠ balanced. The growth of

foumJI ot In roe malton l::.l11:1nccrin:, .iml Aprl1(Jli<M1' ISSN 2224 ｾＷ｢Ｒ＠ rpnntJ ｬｾｾｎ＠ 2225-H'illfi lmlind \lol.-t. f'u.12. 2014

J.4 Mwwgeria/ Implicatio11s

ｾｾＱＱＮｭｴＮＮＺＮＱｾ［Ａ＠

11 • 1

usTE

The comp:uii.on in te rm of additional nee production and ｦ｡ｲｭ･ｲｾ＠ income: accumulauon. its seen that the best 'cenario w3'> scenano Ill, then scenario II anJ fina lly 11Lenario

r.

a ｾｨｯＢＧ＠ n in Table I.

S=manos

I II Ill

Table I . The ｴＺｕｭｰ｡ｲｩｾｯｮ＠ of additional rice production and

farmer' income accumulations during 15 years

ＮＭ｜｣｣ｵｭｵｬｾｵｃＧｮ＠ of iddmonll

Im·rnment Funds CGmpltnt1n Ti..-nt

Poh!htd PJtt Pro.:tucncn

I

_{ｆｾｮｮｵ＠} ln:omt "Etlhcn Rupiah! ' (l'tar· _!On!)

rBill;on Rupulu)

Ｎｬ ｬ ｪ ｾ＠ 1 ! ＱＺｾＳ＠ 11: 50 19:0-19

ｾｊ ＬＮ＠

1:

:OJ

015

co

: l 3S ｾＶ＠

ｾ ｯ Ｍ Ｚ＠ - < ::: ｾｉｾ＠ 95

:

ｾｾｳ＠ !-I

Thi: implememation of rice ngroindu..,trial development ｢ｾ＠ divestmem paucm. need two ｰｲ･ｲ･ｱｵｩｾＱＱ･Ｌ＠ namely the

funding !.upport and lhe readiness of human ｲ･ｳｯｵｲ｣･ｾ Ｎ＠ They are two ｧｲｯｵｰｾ＠ of humJn resources. ｆｩｾｬ＠ group is 1hc management of non-profit agency. Thi' ngcm:y have a JObs and respon:.ib1 lity 10 plan, design and execute all programs lo develop modem rice mill. Second group 1s farmers ｧｲｯｵｰｾ＠ which will operate mc:xlcm rice mill in the fu ture. A farmer group a' -.ocial 'tructure haYe man) relation.-, to each other by variou' interdepc!nciei: (Bha.c;war & Thakur, 2013). The form of farmers group ｩｮｾｵｴｵｴｩｯｮ＠ io, important factor. ln cac;e of both prercquis11cs are fulfi lled the n the Scenario

rn

is recommended due 10 it:. &ho11er in completion time. only takes seven years and half. Otherwise, if lhe fund and hum;in resources are less a\'ailablc then the choi-.e is change lo Scenario II. The ｬｾ ｴ＠ choice b to run S.:enario I, where\·er the fund and human resource are not suit.able lo run Scenario 11. For further de\'eloprnenl il i<> pos-;ihlc 10 be cosidered for rice field extensificalion (Oladele &WakaLsuki, 2009).

IC.

[image:12.626.134.461.185.265.2]

10

Figure 1 1. The gre>"th ot rice IIllll numt-er at the allocation of 15 uniL'i per year

[image:12.626.176.427.423.579.2]

I

loum.tl of lnf11m1:111on Engineering nnd ａｰｰｬｴ｣｡Ｑｩｯｮ ｾ＠

ISSN 2ll4-57R'.! {pnn1) IC\C\"l ＲＲＲＵｾＰＶ＠ lonltn<!l

Vol.4. :'\o.12.2014

ｾ＠

ｾ＠ • C:t

ｾ＠

____

.

.---c

-·

• l f s

_.,

I!

ＢｾＧＭ｜｜Ｎｴｴ ｩＮＬ ｬｾ ｊｬ ｲ ｾ＠

I I

nsTE

rigure 12. The formJlion of additional fanner income at lhe allocalion of 15 unjts per year

70 CGC

ｾ＠

CCC-! I. CCC·

;>

ｾ｣＠

coo-

>-;

?CCC:

:-2c

｣｣ ｾ＠

10 coc

c

.·

c

IC

Y e a r s

/

I''

/

[image:13.626.41.561.68.766.2]

Ｌｾ＠

Figure 13. The grow1h of addj1jonal polished rice production at lhe allocation of 15 uruts per year

4. Coaclw.ions

Tile current progress in mockm ricd 11t1IA dc"elopmcnt for ｩ ｭＮｮＺｾｩｮｧ＠ farmers income and rice production are constrained by limited fund. The ､Ｑ｜Ｇ･ ｾ ｮｴ＠ panem ｩｾ＠ ｰｲｯｰｯｾ､＠ a,, an alternauve is lower to finance and ｾｨｯｮｩＺｮ＠

to compleuon time. The ca.<;e study in C1:inJur D1stnct as the main rice producer region in ｜ｖ･ｾｴ＠ Java. In thh caf\e scudy, if Scenario Ill is applied, the program needs a budget allocation of Rp 81 billion per year. and the completion t ime takeo; seven yc:m. and hall. \\.rule applying Sccrnlrio II. the compkuon Lime takei. longer time.

10 years with budget allocation of Rp54 billion per year. Finall). if applying Scenario I, the completion time take:), 15 years and budget allocation of Rp:!7 billion per year.

By adopting ､ ｩｶ･ｾｴｭ･ｮｴ＠ method. lhe mve,tnient fund can be revol\·ed at the end of the program and to funding 'imilar program in other locauon. Thi' ｾ＠ the advantage of di\e,tment method.

5. Recomendations

ln the implementation of rice agroincu-Lri.11 de,elopment ｢ｾ＠ dJ\t!'Unenr method. the ｲ｣｡､ｩｮ･ｾｳ＠ of farmer group 1-.

vel) important The farmer group ''ill w.k.: O\ er the O\\ ner.h1p. operate. and manage a modem rice mill.

Preparation of fam1er group i:-. ｮ･ ＭＮｾＧＭＭＮｴＮＧＩ＠ rri\.)f

w

implementation. Rela11on with fam1er group rcadJne-.,, the existence of farmer. group tn'-lllUll( m j, ･Ｌｾｮｴｩ｡ｬＮ＠ TI1e form of farmers groups inslltUlion model ｮ･･､ｾ＠ to be

｣ｾｦｵｬｬｽ＠ studied. in ordi:r t\.' find '-'ut ｾ＠ farmer" group rcadine,., for 0\\1lership. management and

opera.-;ionali1ation of modem nee mill.

fou1 nJI of Tnf0tmalion Enc;inco in;; and ａｰｰｬｩ｣ＱＱＱｩ｣＾ＱＱｾ＠

ISSN 2224-5?1!:! (print) ISSN :?225-0506 (onlmel VolA, No.12, 2014

References

｜ｾ Ｎ ｉｴ＠... ｜ｾｾ＠ t. I II

esT1

Abubakar. M. (2007). "Pcrn11 Ju11 Di1w111ikn Per11111 BULOG d<ilC1m Ketalwmm Pcmgrm drm Kesejalrtema11

Pewnt'. Orusi llmiah. /11stit11l Pertw1iw1 Bugm: Bogar.

Antle. J.M. & Stoorvogel, J.J. (2006). "[ncorporating System Dynamics and Spatial Heterogeneity in Integrated Assessment of Agricultural ProducLion SysLems". £11rim11111e11wl and Derdopmmt Economics 11: 39 -58. Basilh. A. (2012). "A dynamics SysLem Modelling for Rice Stock". Dise1taLion. Graduate School. Bogar Agricultural UniversiLy. Bl)gor.

Bhaswar, Y .. & Thakur G.S .. (2013). "Community DeLectiun in Social Nctwo1ling". Journal of Information Engineering and Application!.. 3 (6): 51 -52.

Oaalen, C.V. & Thissen. W.A.H. 2001. '·Dynamic Systems Modelling (\)ntmuous Models".Faculteit Techniek Bestuur en l\tanagement Technische Universit.eit Delft. Delft.

Dillon, H.S.( 2009). "Perrania11 Memba11g11n B(lllgsa". Panebar Swadoya. Bogor.

Garcia-Alonso. C.R., Torres-Jimenez. M .. Hcrvas-Maninez, C. (2009). "Income Prediction in che Agrarian Sector using Product UniL Neural Necwork.C Europian Jou ma/ of Operation Research. 204: 335 - 365.

Herman S, Noor E. Eriya1no & Mulyadi D. (2014). "Prediction of the Trend of Crisi:- Key Factors to Support Policy Formulation of Con•mmption Sall Trade System in Indonesia". Journal of Tnformation Engineering and Applications. 4 (6): 34 - 41.

Kasem, S. & Thapa, G.B. (2011 ). "Crop di\·ersilication in ·Thailand: $1.atu:.., determinants, and effects on income and use of inputs". Land Use Policy 28: 618-628.

Muhammadi, E., Aminullah, B.. Soc:.ilo. (2001). "A11alisis S1sre111 D111amif'. Pe11erblf UMJ Press. Jakarta. Oladele, OJ ., & Wakatsuki, T., (2009). "Effect of Land Tenure in the Adoption of Sawah Rice Production Technology in Nigeria and Ghana··_ Jounwl of Ag1ic11/111ral Science and Technology. 3 (I 0): 47 -53

Patiwiri A.W., (2006). "Teknologi Pe11ggili11ga11 Padt'. Pe11erbit PT Gmmedia P11s1t1kn Utama. Jakarta.

Somanui, A.S., & TI1ahir, R .. (2007 )_ "Ann/isis Sisrem Din(lmik Ke1ersedinm1 Beras di Merauke Dalom Rangkll

Me1111ju Lwnbtmg Padi Bagi Kai1·osm1 Ttmur Indonesia''. Bu/erin ｔ･ｾＷＱＰＯｯｧｩ＠ Pasco Panen Perra11im1. \·vl 3.

Stennan, J .D., (2000). "Bussincss Dynamics: System Thinking and Modelling for Complex World". Irwin McGraw Hill. Boston.

Sumaryanto & Nurmanat, A.R., (2007). "Strategic [)eyelopment of Agriculrural Lnsurance on Rice Farming io Indonesia". Fonun Pe11eli1iw1Agro-Eko11nmi. 25 (2): 89- 103

Thahir, R., (2010). "Revitalisasi Pe11ggi/i11gcm Padi Melalui lnoi:asi Penyo.wlum Mendukung Swasembada Beras

-dan Persainf!an Globaf'. PenJ!embanl!an foorasi Pena11in11. 3 (3 ): 171 - 183.

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