PRODUCTION EFFICIENCY ANALYIS AMONG BENEFICIARIES AND
NON-BENEFICIARIESOF OPRM RICE PROJECT IN KAMPAR REGENCY,
INDONESIA
Fajar Restuhadi and Suardi TarumunFaculty of Agriculture,
University of Riau, Jln.Binawidya 30, Pekanbaru, 28293, Indonesia
E-mail: [email protected]; [email protected]
Abstract
Riau Province is one of the richest provinces in Indonesia. The
province is not only rich in oil resources, but also known as the
Indonesia main palm-oil producer and other plant products. However,
despite of its richness from its natural resources, the province is
also known as one of the critical provinces in term of food
security. Achieving self-sufficiency in rice production has been
the main issue of concern for Riau Province Government. Comparing
the rice productivity of Riau Province with other major rice
producing provinces, it is observed that rice yield per hectare is
significantly low compared to other rice producing provinces.
Therefore, from the year of 2009 to 2013 the Riau Government spent
1.2 trillion rupiahs for an ambitious project called The OPRM
Project (Operasi Pangan Riau Makmur, or Food Operation for
Prosperous Riau) with 3 activities: increasing the rice production
index (IP100 to IP200), rice field extension, and field
rehabilitation. This study was conducted to evaluate the production
efficiency among beneficiary and non-beneficiary rice farmers of
OPRM Project in Kampar Regency, one of the main rice producers in
Riau Province. Data used for the study was obtained using
structured questionnaire, administered on 120 randomly selected
rice farmers from both the beneficiary (60 respondents) and
non-beneficiary (60 respondents) groups of OPRM Rice Project in the
regency. Technical and allocative efficiency estimates were
obtained by using stochastic frontier production function and
marginal product approach, respectively. The study revealed that
the technical efficiency of the OPRM group ranged between 0.41 and
1.00 with a mean value of 0.79 while that of the non-OPRM group
ranged between 0.44 and on 0.98 with a mean value of 0.81 on the
scale of one. The t-test showed that the difference between the
mean scores of the two groups was not statistically significant.
Allocative efficiency analysis also showed that the two groups
under-utilized available resource inputs. Elite capture of the OPRM
project as well as equal access to inputs, except for OPRM Advisory
Service and input supports, may have explained the lack of
significant difference in the mean scores of the two groups on the
technical and allocative efficiencies. The study recommends that
the project implementation strategy should tackle the challenge of
elite capture, inputs diversion, intensify advisory
services/training and ensure the usage of high yielding seeds,
labour saving technology and agro-chemicals for rice farmers.
Key words: Resource use, technical efficiency, allocative
efficiency, OPRM Project
