A Study on the Productivity of Salt Farming on Madura Island, Indonesia

Abstract

Salt is a strategic commodity in the Indonesian economy, with consistent growth in both import volume and number. However, the inability of domestic production to fulfil existing demand is caused by low productivity, which is also affected by farmers on Madura Island. Therefore, this study aims to analyze the determinant factors of salt production, the level of technical efficiency, and the socio-economic factors that cause technical inefficiency. The samples involved 120 people as determined by multistage sampling in 3 regencies on Madura Island, namely Sampang, Pamekasan, and Sumenep. Meanwhile, the parameters were analyzed using the Translog Frontier Stochastic Production Function model and multiple linear regression. The results showed that land and geomembrane influenced salt production, as well as most farmers have not produced efficiently due to the causing factors such as age, number of family members, secondary income, geomembrane, and bozem ownership.