A Strategy to Realize Soybean Self-Sufficiency: A System Dynamics Approach (A Study in Central Java Province, Indonesia)

Oktyajati, Nancy and Hisjam, Muhammad and Sutopo, Wahyudi (2021) A Strategy to Realize Soybean Self-Sufficiency: A System Dynamics Approach (A Study in Central Java Province, Indonesia). Proceedings of the Second Asia Pacific International Conference on Industrial Engineering and Operations Management. pp. 2655-2664.

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Abstract

Food self-sufficiency and increased welfare of farmers are targets that must be realized to create food security. In increasing food security, soybean is one of food commodity that has strategic value as a source of protein and functional food. Sources of growth to increase production of soybean are increasing the harvest area and increasing productivity. Increasing productivity can be done by reducing yield loss, improvement of technology and increasing seed quality. The aim of this study is to establish a strategy for the improving of self-sufficiency and increasing farmer’s welfare with a system dynamics model in supply chain perspective. The method approach refers to the Supply Chain Management model that started with the identification of relationships between entities involved in the form of causal loop diagrams. The model is depicted in accordance with real system behavior. Model simulation is run with Powersim10 software. Based on simulation results by increasing crop area and productivity, selfsufficiency of soybean can be achieved for the next 14 years on demand condition reach 3,882,718.56 quintals (1 quintal is equal to 100 kilograms) and production 6,061,936.83 quintals with productivity 41.97 quintals per hectares (1 hectares is equal to 10,000 square meters) and 114,444.11 hectares harvested area. At the end of the simulation, per capita income of farmers was IDR 3,068,359.41 and ROI was reached at 1.27.

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