Why Do Rice Millers Refuse to Partner With the State? A Socio-Agronomic Perspective From Indonesia’s Agricultural Heartland
Abstract
This study aims to analyze the factors influencing rice millers’ willingness to engage in partnership with the Indonesian State Logistics Agency (Bulog) in Serdang Bedagai Regency, North Sumatra—one of the region’s key rice production centers. Despite this status, participation in Bulog’s procurement partnership scheme remains low. Employing a quantitative approach, this study involved 13 rice milling enterprises across six districts. Variables analyzed include Bulog’s outreach (socialization), purchase price, production capacity, market certainty, and business longevity. Data were examined using Fisher’s Exact Test due to the small sample size and categorical data type. Findings reveal that only the socialization variable had a statistically significant effect on partnership willingness. Bulog’s efforts in providing detailed information, explaining partnership schemes, and maintaining intensive communication played a crucial role in encouraging participation. In contrast, non-competitive pricing, varying production capacities, market stability, and business duration showed no significant effect. This study contributes to the socio-agribusiness literature by highlighting the importance of institutional communication in fostering state–private partnerships in the food sector. Key recommendations include enhancing the frequency and quality of Bulog’s outreach, improving procurement pricing mechanisms, and promoting local government support to strengthen rice supply chain integration through more inclusive partnership models.
Downloads
References
Al Izzati, R., Dartanto, T., Suryadarma, D., & Suryahadi, A. (2024). Direct elections and trust in state and political institutions: Evidence from Indonesia’s election reform. European Journal of Political Economy, 85(12), 102572. https://doi.org/10.1016/j.ejpoleco.2024.102572
Alam, R., Srivastava, A., & Patel, H. D. (2025). Chapter 24 - Categorical variable analyses: Chi-square, Fisher exact, and Mantel–Haenszel. In A. E. M. Eltorai, A. Arab, A. Atala, & M. M. B. T.-T. U. Siddiqui (Eds.), Handbook for Designing and Conducting Clinical and Translational Research (pp. 115–120). Academic Press. https://doi.org/https://doi.org/10.1016/B978-0-323-90186-4.00035-3
Amri, K., & Ningrum, S. (2025). Sustainable Forestry Policy: Indonesia’s Adaptation in Supporting Sustainable Development Goals (SDGs). E3S Web of Conferences, 611(12), 03005. https://doi.org/10.1051/e3sconf/202561103005
Anderson, E., Ilham, M., & Ruhana, F. (2025). The Role of Local Government in Conserving Pandan Wangi Rice Farming Land in Cianjur Regency. Interdiciplinary Journal and Hummanity (INJURITY), 4(6), 379–397. https://doi.org/10.58631/injurity.v4i6.1443
Andriani, L., Kusrini, N., & Maswadi. (2024). Losses in Each Stage of Rice Harvest and Postharvest. Jurnal Ilmu Pertanian Indonesia, 30(1), 85–98. https://doi.org/10.18343/jipi.30.1.85
Anggreany, S., Sumardjo, S., Lubis, D. P., & Syahyuti, S. (2025). The Role of Stakeholders in Strengthening Communication Networks to Foster Farmers’ Economic Institutions. Jurnal Penyuluhan Pertanian, 20(1), 58–78. https://doi.org/10.51852/rzdpjx51
Bowman, A., & Chisoro, S. (2025). Inclusive agro-industrial development and sectoral systems of innovation: insights from South Africa. Innovation and Development, 15(2), 285–314. https://doi.org/10.1080/2157930X.2024.2312311
Cohen, A. J., & Jackson, J. (2022). Governing through markets: Multinational firms in the bazaar economy. Regulation & Governance, 16(2), 409–426. https://doi.org/10.1111/rego.12372
Dania, W. A. P., Xing, K., & Amer, Y. (2022). The assessment of collaboration quality: a case of sugar supply chain in Indonesia. International Journal of Productivity and Performance Management, 71(2), 504–539. https://doi.org/10.1108/IJPPM-11-2019-0527
de Lauwere, C., Slegers, M., & Meeusen, M. (2022). The influence of behavioural factors and external conditions on Dutch farmers’ decision making in the transition towards circular agriculture. Land Use Policy, 120, 106253. https://doi.org/https://doi.org/10.1016/j.landusepol.2022.106253
Fahmid, I. M., Jamil, A., Wahyudi, Agustian, A., Hatta, M., Aldillah, R., Yofa, R. D., Sumedi, Sumaryanto, & Susilowati, S. H. (2022). Study of the impact of increasing the highest retail price of subsidized fertilizer on rice production in Indonesia. Open Agriculture, 7(1), 348–359. https://doi.org/10.1515/opag-2022-0087
Febianti, F., Sudrajat, A. R., & Ningrum, D. W. N. (2024). Factors Inhibiting Communication in Empowering Farming Communities by the Department of Agriculture and Food Security of Sumedang. Khazanah Sosial, 6(4), 743–754. https://doi.org/https://doi.org/10.15575/ks.v6i4.17526
Fieldsend, A. F., Varga, E., Biró, S., Von Münchhausen, S., & Häring, A. M. (2022). Multi-actor co-innovation partnerships in agriculture, forestry and related sectors in Europe: Contrasting approaches to implementation. Agricultural Systems, 202, 103472. https://doi.org/https://doi.org/10.1016/j.agsy.2022.103472
Filipović, S., Lior, N., & Radovanović, M. (2022). The green deal – just transition and sustainable development goals Nexus. Renewable and Sustainable Energy Reviews, 168(12), 112759. https://doi.org/10.1016/j.rser.2022.112759
Gede Agung, D. A., Nasih, A. M., Sumarmi, Idris, & Kurniawan, B. (2024). Local wisdom as a model of interfaith communication in creating religious harmony in Indonesia. Social Sciences & Humanities Open, 9, 100827. https://doi.org/https://doi.org/10.1016/j.ssaho.2024.100827
Guerrero-Ocampo, S. B., Díaz-Puente, J. M., & Nuñez Espinoza, J. F. (2022). Multi-Actor Partnerships for Agricultural Interactive Innovation: Findings from 17 Case Studies in Europe. Land, 11(10), 1847. https://doi.org/10.3390/land11101847
Harahap, S. H., Ridwan, M., & Harahap, R. D. (2023). Analisis Peran Bulog dalam Kebijakan Stabilitas Harga Beras pada Kerangka Maqashid Syariah. Wawasan : Jurnal Ilmu Manajemen, Ekonomi Dan Kewirausahaan, 2(1), 60–70. https://doi.org/10.58192/wawasan.v2i1.1475
Harsanto, B. T., & Wahyuningrat, W. (2024). Investigating the keys to the failure of inter-village government collaboration in developing rural economic potentials in Indonesia. Regional Science Policy & Practice, 16(5), 100023. https://doi.org/10.1016/j.rspp.2024.100023
Istiqomah, N., Mafruhah, I., & Ismoyowati, D. (2024). Development of Rice Distribution Model to Support Food Security in East Java Province. Research on World Agricultural Economy, 5(3), 51–59. https://doi.org/10.36956/rwae.v5i3.1093
Jessop, B. (2022). State theory. In Handbook on Theories of Governance (pp. 77–88). Edward Elgar Publishing. https://doi.org/10.4337/9781800371972.00014
Juliawan, D., Syarief, R., & Findi, M. (2025). Performance Analysis of Premium and Medium Rice Supply Chain of Bulog in Bogor. Amkop Management Accounting Review (AMAR), 5(1), 148–165. https://doi.org/10.37531/amar.v5i1.2447
Kim, S., & Baniamin, H. M. (2022). Understanding the Dynamics of Institutional Trust in Indonesia, Malaysia, and Thailand. International Journal of Public Administration, 45(15), 1092–1102. https://doi.org/10.1080/01900692.2021.1948566
Li, R., Chen, J., & Xu, D. (2024). The Impact of Agricultural Socialized Service on Grain Production: Evidence from Rural China. Agriculture, 14(5), 785. https://doi.org/10.3390/agriculture14050785
Melović, B., Veljković, S. M., Ćirović, D., Vulić, T. B., & Dabić, M. (2022). Entrepreneurial decision-making perspectives in transition economies – tendencies towards risky/rational decision-making. International Entrepreneurship and Management Journal, 18(4), 1739–1773. https://doi.org/10.1007/s11365-021-00766-2
Mohammad, Z. H., Ahmad, F., & Ibrahim, S. A. (2024). Biotechnology Approaches to Food Security: Risks and Solutions. In Microbial Biotechnology in the Food Industry: Advances, Challenges, and Potential Solutions (pp. 1–13). Springer.
Ngarawula, Arif Firmanto, B., & Wahyudi, C. (2023). Actor Relationship Model in Empowering Local Farmers Community Base Sustainable Development to Increase Productivity(Study of Social Interaction Between Field Extension Officers and Farmers in Rubaru District, Sumenep Regency). International Journal of Research in Social Science and Humanities, 04(11), 27–49. https://doi.org/10.47505/IJRSS.2023.V4.11.3
Pandey, N., de Coninck, H., & Sagar, A. D. (2022). Beyond technology transfer: Innovation cooperation to advance sustainable development in developing countries. WIREs Energy and Environment, 11(2). https://doi.org/10.1002/wene.422
Park, E., & Widyanta, A. (2022). Food tourism experience and changing destination foodscape: An exploratory study of an emerging food destination. Tourism Management Perspectives, 42, 100964. https://doi.org/https://doi.org/10.1016/j.tmp.2022.100964
Prihadyanti, D. (2023). Sustainable Business Model Innovation Within a Complex Environment. International Journal of Innovation and Technology Management, 20(06). https://doi.org/10.1142/S0219877023500396
Putra, M. R. J., Pujangkoro, S. A., & Situmorang, S. H. (2023). Marketing Mix Strategy and SWOT Analysis on Beraskita Products Perum Bulog Regional Division North Sumatra. In 19th International Symposium on Management (INSYMA 2022), 937–943. https://doi.org/10.2991/978-94-6463-008-4_117
Qin, T., Wang, L., Zhou, Y., Guo, L., Jiang, G., & Zhang, L. (2022). Digital Technology-and-Services-Driven Sustainable Transformation of Agriculture: Cases of China and the EU. Agriculture, 12(2), 297. https://doi.org/10.3390/agriculture12020297
Ren, Z. (2023). Effects of risk perception and agricultural socialized services on farmers’ organic fertilizer application behavior: Evidence from Shandong Province, China. Frontiers in Public Health, 11(1), 1–8. https://doi.org/10.3389/fpubh.2023.1056678
Riezky, A. M., Gayatri, S., & Mariyono, J. (2022). Satisfaction Level of Rice Farmers Toward Partnership Program with Corporate Logistics (Perum BULOG) in Semarang City, Indonesia. Agrisocionomics: Jurnal Sosial Ekonomi Pertanian, 6(2), 230–245. https://doi.org/10.14710/agrisocionomics.v6i2.13839
Sunah, A. A., & Yudartha, I. P. D. (2025). Accountability as Governance: Negotiating Performance, Power, and Bureaucratic Culture through SAKIP in Bali. Populis: Jurnal Ilmu Sosial Dan Ilmu Politik, 20(1 SE-Articles). https://doi.org/10.30598/populis.20.1.30-46
Suryahadi, A., Al Izzati, R., Suryadarma, D., & Dartanto, T. (2023). How Inequality Affects Trust in Institutions: Evidence from Indonesia. Asian Economic Policy Review, 18(1), 73–91. https://doi.org/10.1111/aepr.12401
Syahrir, M., Anindito, F. D., & Nugroho, D. C. (2025). Building Public Trust in Indonesia’s Legal System: Case Analysis and Social Implications. Hakim: Jurnal Ilmu Hukum Dan Sosial, 3(2), 1148–1163. https://doi.org/10.51903/87s1ed19
Widyawati, W., Hanani AR, N., Syafrial, S., & Sujarwo, S. (2025). Crafting the future of rice in Indonesia: sustainable supply through systems thinking. Cogent Social Sciences, 11(1), 2488113. https://doi.org/10.1080/23311886.2025.2488113
Williams, L. J., Jaya, I. K. D., Hall, A., Cosijn, M., Rosmilawati, Sudirman, Suadnya, W., & Sudika, I. W. (2022). Unmasking partnerships for agricultural innovation: the realities of a research–private sector partnership in Lombok, Indonesia. Innovation and Development, 12(3), 417–436. https://doi.org/10.1080/2157930X.2020.1857949
Winata, A., Sulistiyono, A., & Suwadi, P. (2024). Food Price Stabilization and Corporating Farmer in Agricultural Market (A Legal Breakthroughs For Empowerment of Farmers). Proceedings of the International Conference On Law, Economic & Good Governance (IC-LAW 2023), 394–401. https://doi.org/10.2991/978-2-38476-218-7_66
Xu, J., She, S., Gao, P., & Sun, Y. (2023). Role of green finance in resource efficiency and green economic growth. Resources Policy, 81(12), 103349. https://doi.org/10.1016/j.resourpol.2023.103349
Copyright (c) 2025 Kartika Damayanti Simanjuntak, Diana Chalil
This work is licensed under a Creative Commons Attribution 4.0 International License.
