Government subsidies for agricultural inputs, especially fertilizers and seeds, have a long history in Indonesia. Farmers are highly dependent on agricultural inputs, and with specific recommended applications, farmers can continue to work on farms and contribute to national stock. The need to increase agricultural production, especially food crops, is obvious as domestic demand continues to increase along with population growth. Meanwhile, food crop production will always be overshadowed by the availability of agricultural inputs. The Ministry of Agriculture has so far launched many programs with certain mechanisms to help farmers access such inputs. However, government intervention through large agricultural input subsidies is faced with several ineffective logistical procedures, starting from agricultural input production to farmers’ land. Total government subsidies between 2013 and 2020 for fertilizers and seeds amounted to US$ 22.12 billion. Notably, farming performance is not always reflected in increased production amid the application of modern agriculture. Therefore, the inputs policy subsidy needs to be reviewed to ease the government’s burden. With a descriptive type of analysis using the literature review method, this paper provides several ideas for making the accessibility of agricultural inputs more effective. Among the implications drawn from such a study are (a) reviewing government policy regarding fertilizer subsidies because it creates market distortions and disrupts market competition, and replacing the policy with healthier fertilizers market mechanisms, and (b) reconsidering subsidies for food crop seeds by massive improvement of local plant breeders through various effective training and practices along with other types of inclusive capacity building activities.

错误:搜索内容不能为空,请输入英文关键词
错误:关键词超出字数限制,请精简
高级检索

The Importance of Agricultural Inputs in Modern Agriculture: Challenges of Policy Subsidy

  • Sahat M. Pasaribu,
  • Bambang Sayaka,
  • Silmi Tsurayya,
  • Herlina Tarigan

摘要

Government subsidies for agricultural inputs, especially fertilizers and seeds, have a long history in Indonesia. Farmers are highly dependent on agricultural inputs, and with specific recommended applications, farmers can continue to work on farms and contribute to national stock. The need to increase agricultural production, especially food crops, is obvious as domestic demand continues to increase along with population growth. Meanwhile, food crop production will always be overshadowed by the availability of agricultural inputs. The Ministry of Agriculture has so far launched many programs with certain mechanisms to help farmers access such inputs. However, government intervention through large agricultural input subsidies is faced with several ineffective logistical procedures, starting from agricultural input production to farmers’ land. Total government subsidies between 2013 and 2020 for fertilizers and seeds amounted to US$ 22.12 billion. Notably, farming performance is not always reflected in increased production amid the application of modern agriculture. Therefore, the inputs policy subsidy needs to be reviewed to ease the government’s burden. With a descriptive type of analysis using the literature review method, this paper provides several ideas for making the accessibility of agricultural inputs more effective. Among the implications drawn from such a study are (a) reviewing government policy regarding fertilizer subsidies because it creates market distortions and disrupts market competition, and replacing the policy with healthier fertilizers market mechanisms, and (b) reconsidering subsidies for food crop seeds by massive improvement of local plant breeders through various effective training and practices along with other types of inclusive capacity building activities.