ANALYSIS OF THE EFFICIENCY OF JASMINE AGRICULTURAL CENTRE IN PEMALANG INDONESIA

Abstract

Jasmine flower market opportunity is big enough, Indonesia alone could afford new fulfillment about 22% budget needs of the world market. Pemalang Regency is one of the areas of potential jasmine flowers producers in Indonesia in 2015 vast acres of jasmine harvest is about 5,116,800 meter and a total production of 6,289,999 kg (Department of Agriculture of Pemalang District, 2017). This research aims to analyze the efficiency of the agricultural budget and the efforts of its development. Stochastic Frontier Analysis (SFA) is used in measuring the efficiency of the agriculture budget. The results showed Jasmine farms in Pemalang yet efficient, both in the technical efficiency (TE), Allocation (AE) Efficiency and economic efficiency (EE) because the value of the average efficiency below 0.7. Jasmine farming in Pemalang is still in a phase of increasing return to scale the value of 1,142 so very potential to be developed.