@phdthesis{oai:mie-u.repo.nii.ac.jp:00013205, author = {Mirza Antoni}, month = {Jul}, note = {application/pdf, Price of rubber material in Indonesia is lower than other big rubber producer countries, even though Indonesia is the first largest rubber area and the second biggest rubber production in the world. The main problems causing the low price of rubber material re the low quality and individual marketing. Around 85% of rubber material supply comes from smallholders. To overcome this problem, the Indonesian government has implemented a new policy in 2008. The government has encouraged rubber smallholders to organize themselves into a “Processing and Marketing Unit” (PMU). PMU is a medium for technical guidance for smallholders, processing, temporary storage and marketing of rubber material. By PMU, rubber quality and price are expected to improve. Good application of rubber material processing rules on PMU will increase rubber material quality. The improvement of quality and joint marketing will raise selling price. Moreover, marketing is conducted through auction or partnership. Despite of its policy aim only 388 PMUs have been established, and just less than 5% of rubber material was supplied through PMUs in 2017. It means, there were still many farmers who sell rubber material by traditional marketing individually. The general objectives of this study are to evaluate the impact of the existence of PMU on the rubber smallholders’ economy and the constraints of its development. The objectives are divided into two main objectives. First, it aims to compare the differences in the stakeholders’ economy between trade by PMU and trade by the traditional markets. The PMU members earned a larger income per area than non-members did. The high productivity and price contributed the members’ high income. On the other hand, the present rubber material price sold by PMUs isn’t favorable for crumb rubber factories, although rubber material quality is high. This situation seems to be one of the factors which obstruct the spread of the PMUs. Though the PMU can be expected to improve the economic condition of rubber smallholders, the proportion of PMU members in the rubber smallholders is still low. Therefore, the second objective of this study aims to analysis factors mainly affect the smallholders’ choice of a PMU or non- PMU marketing system. Constraints for smallholders to join a PMU include already having customers or middlemen, debt with the middlemen, and the distance from the farmer’s house to the middlemen’s house. Major supports for smallholders to join a PMU include the rubber material price, easily procured support from the government, and the distance of the farmer’s house. PMUs’ performance did not significantly affect the participation of farmers in becoming or not becoming members. Even though PMUs’ performance was good criteria, the number of smallholders who were members of the PMU did not increase significantly. A large number of rubber smallholders not joined PMU tend to has a small land acreage, low education level and low rubber income, despite being mostly young, having longer rubber farming experience and large production and family size. Formal education of household head, rubber price and income of PMU members were higher than that of non-PMU members, while rubber farming experience of non-PMU members was greater than PMU members. Land acreage and its production, plus age of the household head and family size were not different. The alternative solutions for more smallholders to join as a member of the PMU is conducting intensive agriculture extension to them about the benefits of PMU, providing rural economy finance institutions such as credit unions managed by cooperatives, and giving smallholder more land and being granted soft capital loans by agrarian reform., 本文/Graduate School of Bioresources Mie University, 53p}, school = {三重大学}, title = {Development and Subjects of the Processing and Marketing Units as Organized Marketing System for Rubber Smallholde in Indonesia}, year = {2019} }