WAREHOUSE RECEIPT SYSTEM IN RICE SUPPLY CHAIN IN WEST JAVA TO IMPROVE FARMERS' WELFARE WITH SYSTEM DYNAMICS APPROACH

• Main Author: Suteja, Vania
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/76311
• Institution: Institut Teknologi Bandung

Rice is one of the staples that has a growing and harvesting season. One of the largest rice producing provinces in Indonesia is West Java. However, the seasonal nature of rice production results in price and stock fluctuations in the market. The central government has tried to control the availability of rice, one of which is the Warehouse Receipt System (WRS) program. At harvest time, commodity prices tend to be low. Farmers can deposit their commodities in the form of milled dry grain or rice in the WRS warehouse. The warehouse receipt can then be used as collateral at the bank. After an increase in commodity prices in the market, farmers can sell commodities from WRS. However, in practice, most of the SRG warehouses in West Java are not used. In this study, a simulation model using system dynamics method was developed to map the rice supply chain in West Java. The simulation considers the planting process, price changes, and utilization of WRS. The goal is to find the best scenario by utilizing the Warehouse Receipt System (WRS) in maintaining food security and prices in West Java. In addition, it is expected that the income of the rice farming sector can increase. The simulation results show that utilizing WRS alone in the rice supply chain in West Java does not significantly affect the retail price in the market and the income of the agricultural sector. Value enhancement in WRS warehouses can be done by providing a rice mill in each WRS warehouse. With this policy, WRS warehouses can become satellite warehouses for rice storage so that stocks are better maintained and spread across West Java. Another possible scenario is the development of a West Java Provincial Distribution Center (PDC). With the PDC, farmers have the certainty of a place to sell their commodities at a guaranteed price. The PDC can be combined with WRS as a reserve warehouse for staple food buffers in West Java. Improving farmers' welfare can also be done by using more modern methods and increasing product value. The Millennial Farmer Program was launched to encourage innovation in agriculture, including rice.