Agrotechnology

Analysis performance of the Warehouse Receipt System (WRS) to support agricultural marketing in Indonesia

12^th International Conference on Agriculture and Horticulture

July 09-10, 2018 Sydney, Australia

Endro Gunawan

Asian Institute of Technology, Thailand
Indonesian Agency for Agricultural Research and Development, Indonesia

Scientific Tracks Abstracts: Agrotechnol

Abstract:

The common characteristics of agricultural commodities are perishability, seasonality and variability. Agricultural commodity prices fluctuate during harvest time when the price is low. To get a high selling price, farmers can make a selling delay by depositing the commodity in the warehouse and re-selling at high prices. By deposit, the goods in the warehouse farmers get a warehouse receipt that can be used as collateral to obtain financing to meet the daily needs as well as for the needs of venture capital. Warehouse Receipt System (WRS) have been implemented in Indonesia in 2008 based on Law No. 9 of 2006 on Warehouse Receipt System. There are ten commodities that can be stored in the WRS warehouse: Paddy rice, rice, corn, coffee, cocoa, pepper, seaweed, rattan, rubber and salt. The implementation of WRS is slow and not widely accepted. The objectives of this research are to analyze the concept of Warehouse Receipt System in Indonesia and to assess the performance of WRS to support marketing system of corn commodities. The research was conducted in 2015 in Tasikmalaya District, West Java Province. Primary data were collected through direct interviews using structured questionnaires to farmers, trader, WRS Managers and Bank. The data analyzed by quantitatively and qualitatively analysis. Data analysis results are presented in the form of analytical tables which then discussed descriptively, comparing the concept and implementation of WRS. The results of the study obtained information that the WRS implemented since 2008 is slow. The benefit is mostly for trader but the procedure is complicated. There are supporting institution in the WRS such as warehouse management, assessment Institution for commodity quality and financial institutions. The performance of WRS in Tasikmalaya District, West Java Province in 2015 has been utilized by 15 users with the number of corn successfully stored in WRS Jamanis warehouse reached 386.52 tons or equivalent of corn value of Rp 1, 623 billion. The number of WRS proposed as credit collateral amounts to 12 WRS with a total realization of Rp 900 million. The cost component charged from WRS users consist of the cost for quality test Rp 280.000 per one warehouse receipt, transportation cost Rp. 10-20/kg, drying cost Rp. 200/kg and insurance costs Rp. 0.24 per item value. With the Warehouse Receipt System farmer can expand their marketing channel.

Biography :

Endro Gunawan has expertise in agricultural economic and public policy. He is evaluating the model of agricultural bio industry where the farming system has zero waste and environmental friendly. He is pursuing his PhD at Asian Institute of Technology (AIT) Thailand major on Agribusiness Management. He conducts research on agricultural supply chain and the assessment of warehouse receipt system for agricultural commodities in Indonesia.

E-mail: gunawan_endro@yahoo.com