Green revolution- and wetland-linked technological change of rice agriculture in Indonesia

Abstract

Purpose – The purpose of this paper is to analyse aspects of technological change in rice agriculture, related to adoption of the Green Revolution (GR) in Indonesia. Rice production is selected in this study because it plays an important role in the development of Indonesian economy. Particular attention is paid to the use of agrochemicals that has potentials of contaminating the environment. Design/methodology/approach – The paper uses an econometric model to investigate the impact of different technologies and policies related to rice production. Production function technology that enables non-neutrality of input use is the underlying concept of this paper. Types of land and transformation in policies related to rice production were accounted for to determine biased technological change. National-wide data were compiled from the Indonesian Bureau of Statistics. Findings – The results show that rice agriculture underwent technological progress with biased technological change. The technological change was capital- and labour-saving, and agrochemical-augmenting. Production system in wetland led to technological change less capital- and labour-intensive, whilst the GR led to technological change more labour-saving and more agrochemical-augmenting. Research limitations/implications – This study only pays attention to environmentally detrimental inputs as a cause of externalities. This is a not full representation of real environmental consequences. In some studies on environmental degradation associated with intensive agricultural practices, however, there are other factors that can degrade the environment, such as soil erosion and soil compaction resulting from certain agricultural practices, and deforestation resulting from agricultural expansion. These are also important environmental impacts. The author expects that these factors are interesting and challenging subjects to be modelled in future research on sustainability of agricultural productivity growth, both theoretically and empirically. Practical implications – Increase in use of agrochemicals was strongly GR linked. Moving from the GR towards more environmentally friendly policy was a wise step to reach sustainable rice production. After the GR, an act that removed pesticide subsidies and disseminated environmentally friendly technology, called integrated pest management was able to reduce the intensity of agrochemical use in rice agriculture. Further actions to support environmentally friendly policy could be the use of bio-agents such as bio-fertilisers and bio-pesticides. Enhancing farmers’ knowledge on the environmental issues and engaging farmers as a part of agro-ecosystem would synergise the actions. Originality/value – This study uses the concept of biased technological change, estimated econometrically using national-level data. The production function used in this analysis enables non-neutrality of agrochemical use. When the result significantly shows the agrochemical-augmenting technological change, it is a convincing evidence, not just by accident, that the GR really led to environmental problem.