Special Issue 2, December 2018
Article Number: 01
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Synchronizing Agriculture Trading Regulation and Program in Indonesia – Case Study: Agriculture Trading Regulation of Subang Regency

Purwanegara, M.S., Kusumawati, N., Ekawati, R.H., and Hudrasyah, H.

Abstract—Indonesian government policy in agricultural product trading has so far not been reflected in the principles of social
justice for the poor. The powerless of pineapple farmers in the trade system of agricultural products is strongly suspected by
the inadequacy of laws, regulations and policies that become a reference or general rules of the game for farmers, business
actors, and the government. This condition is further complicated by the enactment of decentralisation in Indonesia as
stipulated in Article 10 and 11 of Law Number 22 of 1999 concerning Local Government. It is the local government that
should have operational control over the regulation of the trading system of agricultural commodities in each regency/cities.
The authority of the National government is only expected to facilitate and coordinate national policies with the policies
adopted by the provinces and regencies/cities. Secondary data are obtained from the institution that is responsible for the data.
There is also various information available from official related governmental sites. Besides, FGD and direct interview with
the stakeholders are carried out. How are the Supply Chain and the position of pineapple farmer in the Supply Chain’s Value added?
What are the government, National-Province-Regency, regulations and programs in solving this problem? How
synchronise the regulations, policies and programs of National-Province-Regency in resolving the trade system problems of
agricultural commodities and achieve their goals? Indonesian legislation in trading agriculture commodity especially in the
food crops and horticulture is non-existent. The only one that it exists in the National Strategic Planning is agriculture
commerce function and how the commerce function is executed or more or less looks like to the function of marketing
management. Indonesian Farmer still needs some more facilitation from National Government such as better distribution ways,
domestic prize stabilisation, growth stimulus, legal protection and prosperity increase strategy. The principles of social justice
in the field of trade in agricultural commodities is supposed to be formulated first before the implementation of the trade
function is executed.

Keywords—decentralisation, food crops trade, regulation, strategy, Indonesia