Formulation of Rice Accounting Cycle in Indonesia

Abstract

Objective: This research aims to formulate the accounting cycle for rice in Indonesia, facilitating the resolution of complex issues in rice management and finance from upstream to downstream. Stakeholders, especially the Indonesian government, can utilize appropriate policies to enhance rice management and accounting practices.   Theoretical Framework: Addressing the rice issue in Indonesia requires systematic policy interventions to serve as solutions for farmers' challenges. This study will delve into the complexity of these issues using the concept of (Purnamasari et al., 2023), encompassing land area, seed costs, and labor costs as determinants of technical efficiency. It expands on (Purnamasari et al., 2023), analyzing it from an accounting perspective.   Method: Employing a phenomenological approach, the researcher conducts observations and direct interviews with a selection of farmers, utilizing ethnographic methods to map out the rice management system in Indonesia.   Results and Discussion: The researcher successfully formulates the accounting cycle for rice, offering a comprehensive solution for rice management in Indonesia. The rice accounting cycle comprises seedling, land processing, planting and maintenance, and harvesting and distribution phases.   Research Implications: The government plays a pivotal role in implementing the Management Control System (MCS) for the rice accounting cycle to improve farmers' welfare and ensure rice self-sufficiency from production to distribution.   Originality/Value: This research is the first to comprehensively examine rice management and accounting practices in Indonesia. Previous studies have been partial in their approach, thus failing to provide effective solutions for rice management and accounting in the country.