STRATEGIES TO COPE WITH CORN IMPORT RESTRICTION TO IMPROVE LOCAL CORN PRODUCTION IN INDONESIA

Abstract

Corn is an important material for feedmill companies in Indonesia to make feed for broiler and layer is corn. Approximately 50% from the composition that feedmills need is carbohydrate and contained in corn. As the producer, feedmills require a steady amount of corn stock every month to produce feed and meet the customer need. In the reality, local corn production cannot accommodate all of demand from feedmill companies. In 2014, local corn can fulfill 70% from feedmills demand, but it’s going down become 50% in 2015. To overcome this problem, feedmills import corn from other countries such as America, Brazil, Ukraine, Argentine, and India. Seeing the significance increase percentage in import corn from 30% (in 2014) to 50% (in 2015), on November 2015, Government of Indonesia makes four regulations about corn import restriction. These regulations targeting all feedmill companies in Indonesia must buy corn from local 75% in 2016 and 100% in 2017. This research is aimed to discover strategies that can be used by feedmill companies and farmers to improve local corn production. The researcher uses qualitative approach to explore the answer and for the analysis, the researcher uses the SWOT analysis and PESTEL analysis. Analysis revealed that there are three strategies that can be considered and done by feedmill companies, farmers, and government to improve local corn production: build water reservoirs, utilize water reservoirs, and government and feddmill could give training to farmers.