Competitiveness analysis of cocoa commodities in South Sulawesi

Abstract

Abstract Cocoa is one of the plantation’s leading commodities which has a considerable contribution to the Indonesian economy, including sources of farmers’ income, producers of industrial raw materials, and creators of employment. The free and competitive facing of free trade, requires that plantation products have competitiveness in order to be able to survive and attract the public compared to similar imported commodity products. This study aims to analyze the competitiveness of cocoa commodities in South Sulawesi and analyze the impact of government policies on the competitiveness of cocoa commodities in South Sulawesi. The analysis method uses the Policy Analysis Matrix (PAM). Through this matrix, the criteria for Private Cost Ratio (PCR) and the Domestic Resource Cost Ratio (DRCR) that can be competitive and comparative advantages can be calculated. The results of this study indicate that cocoa commodities have competitiveness seen from comparative and competitive advantages as indicated by the value of DRCR<1 and DRCR<1. The value of cocoa commodities of DRCR and RBP is 0.20 and 0.22. The smaller the value of DRCR and RBP is obtained, the higher the level of comparative and competitive advantages possessed. Government policies on input-output that have been in effect so far have not been effectively protected by cocoa farmers, which means the government has not had a positive impact on cocoa commodities in South Sulawesi. This can be seen from the private price which is lower than the social price.

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