The competitive and comparative advantages of aglaonema farming in Depok City, Indonesia

Abstract

As the COVID-19 pandemic decreases, the demand trend for ornamental plants begins to decline. To maintain its competitiveness, it is necessary to study the government policies and the performance of aglaonema farming. The objectives of this study were: 1) to analyze the profitability and competitiveness of aglaonema in Indonesia along with the policy impact, and 2) to simulate fluctuations in aglaonema’s competitiveness after the changes in its indicators. The Policy Analysis Matrix (PAM) was employed in supporting the descriptive and quantitative methods. The research object was the variety fiery red ‘Suksom Jaipong’, the most popular aglaonema in the 2000s. The data was collected from farmers in July 2022 - November 2022 in Depok City, one of Indonesia’s centers for ornamental plants. The results of the study explained that aglaonema farming in Depok City was profitable and gained both competitive and comparative advantages, indicated by PCR and DRCR valued at 0.146 and 0.107. The evaluation of policy using Output Transfer, NPCO, Input Transfer, Factor Transfer, NPCI, EPC, and SRP indicators, showed that trade policies such as free trade did not harm farmers’ competitiveness and on the contrary, positively stimulated aglaonema’s competitiveness. The simulations of a decrease in production or a weakening of the Indonesian rupiah exchange rate have proven to not significantly affect competitiveness. This study concludes that the competitiveness of aglaonema in Depok City is relatively high, supported by the optimization of local resources.