FACTORS THAT INFLUENCE THE DECISION OF HOW TO SELL COCOA FARMERS IN THE INDONESIA-MALAYSIA BORDER REGION
Dewi Elviana1, Yosini Deliana2, Iwan Setiawan3, Rita Komaladewi4
Faculty of Agriculture, University of Borneo Tarakan, Tarakan 77123 North Kalimantan, Indonesia Faculty of Agriculture, Padjadjaran University, Jatinangor Sumedang 45363 West Java, Indonesia Faculty of Economics, Padjadjaran University Bandung 40132 West Java, Indonesia
Cocoa is the main agricultural commodity for most countries in the world. For Indonesia, cocoa is the third foreign exchange-producing agricultural commodity after oil palm and rubber. Based on cocoa producing regions, around 70% is produced by farmers from the provinces of Central Sulawesi, West Sulawesi, South Sulawesi, and Southeast Sulawesi. Sebatik Island is a border area between Indonesia and Malaysia which is a producer of cocoa. The phenomenon that occurs is that cocoa farmers in the Sebatik area have a low bargaining position in determining cocoa prices. This is due to the weakness of alternative market information owned by farmers. The purpose of this study is the factors that can influence farmers in terms of farmers’ decision making on how to sell cocoa on the island of Sebatik. The data was obtained through interviews with 202 cocoa farmers so that sixteen factors can be identified that influence cocoa farmer decision making. The results of the analysis show that there are five main factors that influence farmers’ decision making on how to sell cocoa, namely farmer groups, farming experience, education, age and traders (cocoa buyers). As an implication, the strategies that can be carried out are (1) improving the quality of cocoa through educational activities by agricultural extension workers, (2) strengthening communication and market information networks so that traders cannot play with prices and (3) managing border areas through farmer empowerment so that it will reduce farmers’ dependence on Tawau (Malaysia).
Keyword : Cocoa, Decision making, Farmer, border