The Potential Benefits of Global Value Chain Inclusion on Indonesian Cassava Farmers

Rachmaniar Rachmat

2018

Abstract

Indonesia is a tropical country that is very rich in biodiversity (flora and fauna). Judging from the potentials (the land, climate, natural resources, and human resources), Indonesia should be able to thrive to become an advanced agricultural country. But reality speaks differently. For instance, in Southeast Asia region, Indonesia is still losing the competition in the agricultural industry. One of Indonesia's agricultural products that are being neglected by the government is cassava. So Thailand, taking advantage of cassava’s global market, transformed into the biggest cassava exporter in the world. Vietnam is also starting to smash in the global cassava market seriously. While cassava is abundant in Indonesia, most farmers do not know where to sell their crops. This situation is then taken advantage by cukong (food mafia) to play with the crops’ price by connecting farmers to the market/buyers and eventually put these farmers in the cukong’s mercy. Farmers are put at disadvantages since they get much lower than the standard price for their products. There is a power asymmetry in crops supply chain network. By using literature review method, this paper aims to analyze the potential benefits for Indonesian cassava farmers in the Global Value Chain (GVC) Inclusion. This paper uses a startup agriculture company which specializes in selling cassava products, Ladang Lima (Pasuruan/Surabaya), as a case study. The conclusion of this paper supports internet adoption (ICT in agriculture) that provides access to domestic and global market, enabling financial investment, and access to technology.

Paper Citation

in Harvard Style

Rachmat R. (2018). The Potential Benefits of Global Value Chain Inclusion on Indonesian Cassava Farmers. In Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR, ISBN 978-989-758-493-0, pages 289-296. DOI: 10.5220/0010276100002309

in Bibtex Style

@conference{acir18,
author={Rachmaniar Rachmat},
title={The Potential Benefits of Global Value Chain Inclusion on Indonesian Cassava Farmers},
booktitle={Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR,},
year={2018},
pages={289-296},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010276100002309},
isbn={978-989-758-493-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR,
TI - The Potential Benefits of Global Value Chain Inclusion on Indonesian Cassava Farmers
SN - 978-989-758-493-0
AU - Rachmat R.
PY - 2018
SP - 289
EP - 296
DO - 10.5220/0010276100002309