Changes of technical efficiency and total factor productivity of cocoa farming in Indonesia

Effendy

Abstract: The decomposition of the Malmquist index shows the private category farming during the period 2012-2016 was on the frontier. This indicates that private farming categories were more efficient using inputs in Indonesia. Farming category smallholder was not efficient in using input. Malmquist total factor productivity index for 2012-2016 for farming category is > 1. This means they have experienced positive growth over the past 5 years and vary but there was no defi nite trend for every cocoa farm. Farming category smallholder and government each experienced the smallest and largest productivity growth. The average productivity growth of 33 provinces in Indonesia for the period 2012-2016 was 1.9% per year. The lowest and highest productivity growths of cocoa farming were 0.6% and 35% for Riau and Nusa Tenggara Barat Province. Kepulauan Riau Province did not show productivity growth whereas in Central Kalimantan Province there was the highest decrease of productivity that was equal to 16.3%. To promote productivity growth, policies should be made to improve farmers’ knowledge through extension and training, as well as improving technology and research in agriculture.

Keywords: cocoa farming productivity; farming category; Indonesia; smallholders

Date published: 2018-09-01