The effect of agricultural infrastructure assistance and subsidised fertilisers from the Ministry of Agriculture on Rice production in South Kalimantan Province

Abstract

South Kalimantan Province is the 12th rice producing province in Indonesia and has the 8th largest Rice Field Area (LBS) in Indonesia; this puts South Kalimantan Province as a province that has potential in the agricultural sector, especially food crops. The Ministry of Agriculture through the Directorate General of Agricultural Infrastructure and Facilities allocates a budget for the development of agricultural infrastructure and facilities and subsidised fertilisers every year in order to increase food crop production, especially rice. This study aims to see the effect of agricultural infrastructure and facilities assistance and subsidised fertilisers that have been realised by the Ministry of Agriculture in South Kalimantan Province within a period of 10 years, namely 2012-2021 to increase rice production in 11 districts/cities in South Kalimantan Province and the problems that occur in the distribution of agricultural infrastructure and facilities assistance and subsidised fertilisers. The data analysed are secondary data including rice production data as the dependent variable and the independent variables are irrigation water management activities for agriculture, land expansion and protection activities, agricultural machinery assistance, non-organic subsidised fertiliser and organic subsidised fertiliser. The method of analysis used in this study is the Panel Data Regression Method, which is a combination of time series and cross section data. The results showed that irrigation water management activities for agriculture and non-organic fertilizers had a significant effect on rice production in South Kalimantan Province, then agricultural irrigation water management assistance; agricultural land expansion and protection assistance, agricultural tools and machinery assistance, non-organic subsidized fertilizers and organic subsidized fertilizers simultaneously or thoroughly affect rice production in South Kalimantan Province. The problem faced is the lack of awareness of aid recipients in managing and maintaining the assistance that has been given and the lack of proposals for the realisation of subsidised organic fertiliser in South Kalimantan province.