There are many Presidential Instruction (Inpres) for Rice Policy in the period 2005-2008. Based on Inpres, ones of the policy instrument to achieve the objectives of rice policy are to make use the new technologies. The objective of this research is to analyze the new technologies effects on Indonesia's rice import. The research used time series data based on the Presidential Instruction, March 2005-September 2009. This research used simultaneous equation model, consisting of sixth structural equation and forth identity equation. The model of simultaneous equation is over identified, and model was estimated using 2SLS (Two Stage Least Squares). The result showed that: (1) using new technologies increase paddy yield and paddy production. The increase in the paddy production hence increased rice production. The increase rice production led to increase total rice for seed and shrinkage although it is increase, rice production also increases, (2) the increase of rice production led to increase total society's rice supply. The increase of total society's rice supply led to a decrease in the total Indonesia's rice import. While the total Indonesia's rice import has a positive correlation on the total rice stock for Bulog distribution and not significant, moreover, the decrease of the total Indonesia's rice import led to decrease on the total rice stock for Bulog distribution, and (3) based on presidential instruction, we review new rice technologies that have been develop by research institute, specifically a new variety, to improved paddy yield and paddy production.

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This research study has reported different profit margin of smallholders in Labuhan Batu and Asahan which can be due to production’s cost incurred by smallholders. In addition, the price of fresh fruit bunches (FFB) of oil palm offered by eachtrader is also found different. This could be the differences in efficiency and the length of marketing channels traversed by partner and non-partner samllholders. The length of marketing chain was transferred to the marketing costs incurred and the margins received, so there is share for each marketing. Therefore such study is needed to estimate the marketing margins and channels of non-partner smallholders, partner smallholders, and explasma smallholders, the marketing functions carried out by each palm oil marketing channel in Kuala Hulu, factors that help samllholders choose marketing channels, increase marketing and the efficientcy of non-partner samllholders, partner smallholders, and explasma smallholders. The data used in this study are primary as well as secondary data. The analytical method used in the Shepperd’s Method, Acharya and Anggarwal’s Method, Composite Index Method, Marketing efficiency index method and Soekartawi Method. The analysis shows that there are 2 marketing channels, identified as Channel 1 : Smallholders-Middleman_RAM-Palm Oil Mill and Channel 2 : Smallholders-Middleman-Palm Oil Mill. The study has concluded that all smallholders do selling, transporting, standardization, risk bearing, and securing market information. Regular customer, services, contracts are figured out as the major reasons marketing agents choose marketing channels. The most efficient marketing channel is partner independent samllholders with the shortest channel.

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