THE IMPACT OF GOVERMENT POLICY ON SHALLOT COMPETITIVENESS IN WANASARI SUB DISTRICT BREBES REGENCY

Abstract

This study aims to determine competitiveness, the impact of government policies, and the impact of changes in output prices on the competitiveness of shallot in the Wanasari Sub-district, Brebes Regency using the PAM (Policy Analysis Matrix) method. The results showed that shallot farming had competitive advantage (PCR 0.44) and comparative advantage (DRCR 0.77) which indicated that shallot farming had very high competitiveness. There is protection against output (NPCO 1.63)and subsidies on tradable inputs (NPCI 0.87). Simultaneously government policies on inputs and outputs give benefits to the shallot farming. Changes in output prices greatly affect the competitive advantage of the shallot farming. Farmers will only receive financial benefits if the output price is more than Rp7.185/kg.