Rice Production Analysis in Reflecting Rice Self-sufficiency in Indonesia

Abstract

Indonesia was the third rank after China and India as the largest rice-producing country in the world in 2020. However, data on the Indonesian import of rice shows fluctuation in recent years. Food security and self-sufficiency have been a problem faced by many countries before COVID-19 came in. Hence, this observation aims to analyze the influence of land area, labor, and farmers’ capitals on rice production in reflecting rice self-sufficiency in Indonesia. This research applied panel data methodology with land area, farm laborers, and farmers' capitals as the independent variables while rice production as the dependent variable, recorded in 2018 to 2020 in 34 provinces in Indonesia. The most appropriate model for this research was the random effect model. The results confirmed that land area had a positive and significant impact while the other two variables showed no significant effects on rice production in Indonesia.