“IMPACT OF FMSRB PROGRAM POLICIES IN BANTEN PROVINCE”

Abstract

Abstrac

Agriculture is a sector that contributes an important role in the formation of GDP, employment, and sources of income for the community, as well as its role in producing agricultural products for the provision of food, feed, industry and export. Multipurpose plants are various types of plants that have multiple functions. Various parts of multi-purpose plants such as wood, fruit, and leaves. Multipurpose plants have an important role to support the community's economy, because the majority of these types of plants are seasonal plants so they can be used as a source of income. In addition, multipurpose plants are a good prospect to be used as part of the plant rehabilitation program. The central government through the ADB Loan 3440-INO loan fund has implemented the Flood Management In Selected River Basins (FMSRB) program in the Ciujung Watershed to distribute assistance to farmers in the CIS 3 DAS area of Banten Province.

Profitability Coefficient (PC) is the ratio between actual net profit and economic net profit. The PC value describes the combined effect on output, tradable input and non tradable input. The PC ratio is used to see the impact arising from policies that can cause differences in the levels of private (financial) benefits and economic (social) benefits. The PC value can also describe the overall influence of government policies that can cause the value of private profits to be different from the value of economic profits.

The PC value obtained in the multi-purpose crop business for the durian commodity at the study site was 1.45, which can be seen in Table 15. This means that the producer's profit if there is policy intervention from the government is 1.45 times the social benefit. Producers will benefit 145% of the profits that will be received by producers if the government intervenes in policies. It can be concluded that a PC value that is more than one means that overall the government policy provides incentives to producers.

The ratio to producer subsidy (SRP) is the ratio between net transfers and revenues at shadow prices. The value of the subsidy ratio for producers is negative or less than 0 (zero) (SRP < 0) meaning that the existence of government policy interventions so far has resulted in producers paying production costs for inputs that are greater than the offset costs for production. Meanwhile, if the value of the subsidy ratio for producers is positive (SRP > 0), it means that there is government policy intervention which results in producers having to pay production costs for inputs that are lower than the offset costs when producing.The SRP value in organic Arabica coffee farming at the study site was 0.43. It can be interpreted that government policies in implementing organic farming systems have caused organic coffee farmers in the study locations to pay 43 percent lower production costs than opportunity costs for production. In the FMSRB for the durian commodity, the government has provided a policy in the form of assistance with fertilizers, maintenance and seeds.Keywords: impact, policy, Multipurpose Plants, FMSRB