COMPETITIVENESS ACCELERATION STRATEGY ON AGRIBUSINESS “THREE-FIVE MODEL”

Abstract

This research has aimed to study, to predict, and to formulate the competitiveness of Robusta coffee bean, soybean, paddy, sugar, and tobacco. The methods of Three-Five Competitiveness. The results of the research showed that: from the side of supply, the production should consider some factors, such as the number of production in Indonesia, the price of fertilizer in the country, the government policy of protection that were less support to the competitiveness acceleration; from the demand perspective, there is a significant opportunity in coffee post harvest processing demand in the domestic and world market; from the environment and farming business perspective, it is considered as monoculture and has not yet applied suggested technical culture, the awareness of smallholders about genuine seed variety is low, infected by plant diseases. Also, is just processed in the primary level meanwhile downstream product processing has not yet been conducted significantly; from the policy perspective, it is concluded that the government support in the domestic policy is lacking (shown by the coefficient of Domestic Resource Cost Ratio (DRC) is better than Private Cost Ratio (PCR), the coefficient of Nominal Protection Coefficient on tradable Output (NPCO) and Subsidy Ratio to Producers (SRP) is not supporting the competitiveness acceleration if they are compared to the world price). But, the coefficient of Nominal Protection Coefficient on Tradable Inputs (NPCI) of the government policy has contributed a significant support for the competitiveness acceleration and; from the social perspective, it is shown that the smallholders is dominantly risk neutral or safety first.