Comparative analysis shows revitalizing mills enhances price stability and farmer livelihoods in Indonesia's rural economy, indicating a shift from large mill dependence.
Purpose We compare new establishment of large mills versus revitalisation of traditional local mills in Indonesia's rice sector with respect to food security, farmer livelihoods, and rural economic linkages, asking whether efficiency gains from modernisation erode local relationships that stabilise prices and jobs. Design/methodology/approach We surveyed 55 mills, 118 farmers, and other actors (n = 281) across three Aceh regions using a convergent parallel mixed-methods design (surveys, interviews, network mapping). Spatial social network analysis (SSNA) analysed observed transactions; constrained simulation completed missing ties to characterise grain flows, actor centrality and regional connectivity. Findings New large mills lift short-run efficiency but often weaken local linkages. Revitalising small/medium mills – adding drying capacity, basic quality control and working capital – strengthens resilience and price stability. Network metrics identify collectors as central brokers; reinforcing collector–mill ties is pivotal. Public-led support better avoids destructive competition and anchors local supply networks. Research limitations/implications This single-province case uses partially observed networks with simulated ties; implications apply to Aceh, and any generalisation is conditional on similar network structures and price-policy settings. Originality/value The study integrates primary field evidence with SSNA to compare establishment versus revitalisation, links network structure to food-security and rural-economy outcomes, and translates metrics into actionable policy steps for non-technical readers.
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NUGROHO et al. (2025) studied this question.
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