AGRARIS: Journal of Agribusiness and Rural Development Research

Front Matter

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AGRARIS is a periodical scientific journal on Agribusiness and Rural Development. AGRARIS is published biannually (January – June, and July – December) by Universitas Muhammadiyah Yogyakarta (UMY) and managed by the Department of Agribusiness, Faculty of Agriculture UMY in collaboration with the Agribusiness Association of Indonesia (AAI) and Indonesian Society of Agricultural Economics (ISAE). AGRARIS was indexed in Scopus (Q3) and got Science and Technology Index (SINTA) 1.

Back Matter

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Acknowledgment to Reviewers

Consumers’ Attitude and Preference toward Fresh Tomatoes in Special Region of Yogyakarta, Indonesia

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Increasing tomatoes consumption which is driven by needs and desires, changes consumers’ tastes and preferences. This study aimed to determine consumers’ attitudes and preferences towards tomato’s attributes. A convenience sampling which consisted of 150 respondents in the Special Region of Yogyakarta was selected for this research. Fishbein’s Multi-attribute was used to analyze consumers’ attitude, and a conjoint analysis was employed to identify consumers’ preferences. According to the findings of this study, consumers have a favorable attitude toward tomato attributes such as freshness, color, firm texture, surface appearance, and taste. Meanwhile, the findings of the conjoint analysis revealed that the color of the tomatoes was the most favored characteristic. The most preferred combination of tomato characteristics was red color, highly fresh, firm texture, spot-free surface look, and sweetness.

The Effects of Internet on Rural-to-Urban Migrating Intentions of Young Villagers: Evidence from Rural Indonesia

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Indonesian’s government attempts to build internet infrastructure covering all rural areas of which most internet users are young. Youths refer to a generation who intuitively able to operate internet device and are supposed to take an important decision about their future careers, occupations, and living places. This study aimed to identify effects of internet on rural-to-urban migrating intentions of rural youths. The Structural Equation Model-Partial Lease Square (SEM-PLS) approach was applied. This study involved 866 of 15 to 24 years villagers of Tumpukrenteng Village, Malang Regency. This village reflects an ordinary village which is characterized high rural-to-urban migration. A randomized of 213 respondents were taken but 193 respondents were analyzed due to internet users. The independent variables covered internet infrastructure, internet usage, collecting information on prospective destination activity, and the dependent variable covered migrating intention. The results demonstrated that internet accelerated young villagers’ rural migrating intention. Internet allowed their users to access information of prospective destination. This research suggested young villagers to apply internet into economic benefits activity, such as e-commerce and to reduce adverse impacts of internet usage and rural youth’s emigration.

Village Road Quality and Accessibility on Transforming Rural Development

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Rural road infrastructure in Indonesia has increased significantly, especially during the last decade. This study presents an overview of how rural road quality and accessibility affected village economic transformation. It is the first empirical study in Indonesia addressing rural transformation. Village-level microdata, referring to the smallest administrative official, were utilized. Using a Random-Effects Panel Logit model, this study discovered that improving the type of road surface and accessibility for four-wheeled vehicles significantly increased the probability of village economic transformation. Different types of road infrastructure improvement affected the rural economic transformation both within and outside Java-Bali. Paved or concrete roads in Java-Bali had a higher marginal effect than on other islands, thereby increasing the likelihood of rural economic transformation. However, the road accessibility for four-wheeled vehicles in Java-Bali did not significantly affect the probability of rural economic transformation. Nevertheless, for villages on other islands, it did. Furthermore, the transformation significantly influenced other infrastructures, such as electricity coverage, market presence, information and communication technology (ICT), and flatland topography. Moreover, the road access to villages and the availability of water or irrigation significantly affected the probability of surviving in the agricultural sector. Following these findings, policymakers should prioritize villages’ infrastructure by considering different types of infrastructure provision across villages, referring to different infrastructure needs for Java-Bali and other islands.

Non-Tariff Measures and Competitiveness of Indonesia’s Natural Rubber Export in Destination Countries

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In the last few decades, the implementation of tariff policies between countries has declined. As a result, the enforcement of non-tariff measures (NTMs) experiences an increase. Implementing NTMs raises a new obstacle to trade activities in the global market, including the trade of Indonesia’s natural rubber. Therefore, this study was conducted to determine the effect of enforcing NTMs on the export competitiveness of Indonesia’s natural rubber. This study utilized secondary data from UN COMTRADE on 1995 to 2019. The data was analyzed using frequency index, coverage ratio, comparative advantage, and two-stage least square regression model. The results revealed that India, China, and the USA enforced the most NTMs of Indonesia’s natural rubber. Additionally, the implementation of NTMs in importing countries positively correlated to the export competitiveness of Indonesia’s natural rubber in destination countries.

Competitive Advantage between Malaysia and World Halal Producers of Ruminant Meat

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The gap created by the mismatch between high domestic demand and low domestic supply of halal meat has been filled by ruminant meat sourced from the international markets. However, the exporting countries are still limited due to stringent halal requirements. This study examined the competitive advantage of trading partners in the exportation of ruminant meat. Moreover, this study also identified factors underlying the import of ruminant meat and determined the comparative advantage of local production of ruminant meat. This study employed Vollrath indices through the utilization of relative export advantage, relative import advantage, and overall relative trade advantage. Analysis was conducted on 26 countries and 15 product codes of ruminant meat. The findings disclosed that the possession of competitive advantage did not exclusively belong to traditional sources but to other countries, particularly Pakistan and the Netherlands.

Indonesia’s Natural Rubber Productivity and Technically Specified Natural Rubber 20 Export: The Effect of El Nino Southern Oscillation

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El Nino Southern Oscillation (ENSO) causes rainfall anomalies, which may disrupt Indonesia’s natural rubber production by interfering with the trees’ growth and affecting the export volume. This study analyzed the effect of ENSO dynamics on the monthly productivity of natural rubber and Technically Specified Natural Rubber (TSNR) 20 export. Monthly data from January 2006 to December 2019 were collected from the Statistics Indonesia, International Trade Centre (ITC), World Bank, Bank Indonesia, and National Ocean and Atmospheric Administration (NOAA). Descriptive statistics unveiled that strong La Nina increased the average of monthly productivity by 3.37% to 9.68%, while strong El Nino tended to decrease productivity by 1.30% to 9.27%. Moreover, the Vector Error Correction Model (VECM) demonstrated the negative effect of ENSO on Indonesia’s natural rubber export, both in the short and long term.

Does the Sleman Chili Auction Market Affect the Local, Regional and National Market Prices in Indonesia?

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Promoting the horticultural auction market as an alternative outlet is becoming more popular. The horticultural auction market has some benefits, such as reducing price volatility and controlling inflation. This research used a case study in Sleman Regency, which established a horticultural auction market to manage volatile chili prices. The daily price data with ECM-GARCH analysis was used to investigate market integration between the Sleman chili auction market and other markets. The result showed that the Sleman auction market had a beneficial impact on the price decline in the local markets. This impact indicated that the auction market controls inflation at the regional level. However, only 5% to 13% of daily variations of the long-term equilibrium of the auction market to other markets were adjusted. There was information efficiency of the chili prices in Indonesia based on the GARCH model. This study proves that auction markets promote control of macro inflation. This study was the first to manage horticultural product price risk from a chili auction market perspective. Moreover, the model applied in this study expands the ECM-GARCH model to improve the validity of an ECM's significance tests and the efficiency of standard ECM parameter estimation.

The Effect of Domestic Consumption on Natural Rubber Farmgate Price in Indonesia

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The decline in natural rubber farmgate prices in recent years directly impacted Indonesia’s natural rubber market. In response to this phenomenon, the government plans to increase natural rubber domestic consumption to raise Indonesia’s rubber price. This study aimed to determine the effect of increasing natural rubber domestic consumption on natural rubber farmgate prices and analyze other factors those influence it. The Error Correction Model was used to identify the variables that significantly affect Indonesia’s natural rubber farmgate price. The data used in this study were monthly data from January 2012 to December 2017. Results showed that natural rubber domestic consumption did not significantly affect the Indonesia natural rubber farmgate price. However, in the long run, Indonesia’s natural rubber farmgate price was influenced by the previous period of Indonesia’s natural rubber prices, world natural rubber prices, world crude oil prices, and exchange rates. While in the short run, Indonesia’s natural rubber farmgate price was influenced by the previous period of Indonesia’s natural rubber prices, world natural rubber prices, and exchange rate.

Selected Factors Influencing China's Palm Oil Import Demand from Malaysia

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The export of palm oil from Malaysia to China has declined since 2013, although the Malaysian Ringgit has depreciated. The Malaysian palm oil market has also struggled against the Indonesian palm oil and soy oil in China. Hence, this study aimed to identify the significant factors influencing China's demand for Malaysian palm oil by adopting the Auto-Regressive Distributed Lag (ARDL) analysis. The finding revealed that the currency rate of exchange, the foreign trade price of Malaysian palm oil to China, and the international soy oil price significantly influence Malaysian palm oil demand in China. Nevertheless, China's real GDP per capita showed a positive and significant influence only in the long run. The demand for Malaysian palm oil in China was not significantly impacted by the palm oil price offered by Indonesia, neither in the long run nor short run. Thus, the authorities related to this industry need to strategize the stock management system to control the price and currency stabilization to maintain its competitive power.