by Husin (Dissertation, 2014) Promoted by Robiyanto H Susanto, Benjamin Lakitan, Ardiyan Saptawan, Muhammad Yazid

The development and management of tidal lowlands in Banyuasin District and Tanjung Jabung Timur District which have been carried out since the beginning of 1969 until now have been running for more or less 44 years. However, the production of rice in general has just reached an average of only 2 to 3 tonnes/ha/ year with an average income level of 6 to 7 million rupiahs / ha / year, therefore the trend of conversion of agricultural land into other usage is constantly increasing. This study was conducted to generate recommendations, or models of policy implementation of management and utilization of sub-optimal lowland in supporting of increasing food production and preventing agricultural land conversion. This study uses a descriptive qualitative method and approach and is followed by a quantitative method using PAM analysis tools and SEM analysis. The location of the research is intentionally determined (purposive sampling), and sampling technique used is random sampling with a sample totaling 133 farmers. The data are then presented in the form of tables and figures and narratives to interpret the data.

The results of the study show that agricultural activities in tidal lowlands lack of support in infrastructure availability, such as good water governance networks. The available harvest and post-harvest technology does not correspond with the physical conditions of the environment and productivity of the farm land. The availability of means of production does not match the needs and time of provision. Limited manpower, market, and prices of unhusked rice at the farmers’ level have not been in line with expectations. Institutional at the farmers’ level does not function optimally. The implementation of the programs and activities involves fewer farmers or farmer groups as users and post-implementation is less supported by monitoring and evaluation of the success and the impact of the activities that have been carried out, and lack of assistance provided by the related department to increase production. The average production of Dried Unhulled Rice (GKP) per hectare in Tanjung Jabung Timur District is 2 to 3 tonnes of GKP, while that of Banyuasin District is 3 to 5 tonnes of GKP. The selling price of GKP in the two locations ranges from 3,000 to 3,300 rupiah per kg.

The results of the analysis of the competitiveness of the impact of the policy of development and management of tidal lowlands for rice farming in Tanjung Jabung Timur District and Banyuasin District have a comparative advantage and competitive level. This condition is shown by DCR values (0.30 and 0.55) and PCR values (0.42 and 0.87) which are smaller than one (<1). The smaller the values of DCR and PCR of rice farming, the greater its comparative and competitive advantage will be. The rice farming in Banyuasin District has better comparative advantage and competitive level than the rice farming in Tanjung Jabung Timur District. The results of the analysis of the impact of policies on the traded factors of production (tradable inputs) such as fertilizers and pesticides show that NPCI values (0.71 and 0.32), IT (-736,000 and -821,900) and TF (815,078 and 1,152,795) of farming systems conducted in Banyuasin District and Tanjung Jabung Timur District contain subsidies to farmer’s inputs that cause financial input prices to become lower than their shadow prices (their social prices) so that financial benefit received is smaller than that in the absence of policy. Policy of subsidies implemented by the government to tradable input costs have not been able to provide optimum benefits to the income of the farmers, although the farmers have not paid the full social sacrifices (social opportunity) that should have been paid. TF positive values also explain that there has been a negative subsidy to the non-tradable inputs, which should have boosted the farmers’ income.

The result of the impact of government policy on output (price of GKP) shows that NPCO values (0.82 and 0.76) of rice farming in Banyuasin District and Tanjung Jabung Timur District are worth less than one (<1). This condition indicates that the implementation of government policy has been less supportive in increasing production since the price of GKP received at the farm level is lower than its social price. This results in a reduction in income due to the existence of policies that affect the price of output, and the government’s policy on rice farming in the tidal lowlands is a disincentive to the output. From the results of the calculation of the Effective Protection Coefficient (EPC) it is revealed that the values of EPC of Banyuasin District and Tanjung Jabung Timur District are 0.83 and 0.78 which are smaller than one (EPC <1) and the SRP values of the two regencies are negative, namely -0.27 and -0.19. This condition shows that the government’s policy towards the input-output does not run effectively and influences the rate of increase in production and has an impact on the increase of the costs of production.

Tthe results of SEM analysis show that there is a positive influence between the technical factors and the non-technical factors, but the effects are small and not significant statistically. In fact, technical factors have a positive impact on food production, but the impact is also not statistically significant because it is too small. Nontechnical factors of the production have a positive and significant impact on the increase in rice production. This condition proves that technical factors have both direct and indirect effects on rice production. This condition also indicates that non-technical variables are intervening variables that are good for technical variables. This means that management policies of sub-optimal lowlands will be effective in supporting the increase of national food production if the need for infrastructure, technology, farming systems, and the physical condition of the nature are synergistically managed through the institutions and the socio-economic existence of the society.

Keyword: Pokicy impact, Lowland management, Increased food production