Analysis of Comparative and Competitive Advantages of Arabica Coffee Farming in Kerinci Regency, Jambi Province Using the PAM (Policy Analysis Matrix) Method

The purpose of this study is (1) to analyze the comparative and competitive advantages, and (2) to examine the impact of government policies on the competitiveness of Arabica coffee farming. The research was conducted in Kerinci Regency, Jambi Province, focusing on three Micro, Small, and Medium Enterprises (MSMEs): Koerintji Barokah Bersama, Alko, and Agro Tropic Nusantara. The duration of the study was eight months. The research objects include (1) private and social prices, revenues, incomes, and profits of the MSMEs; (2) the comparative and competitive advantages of Arabica coffee farming; and (3) the influence of government policy on the competitiveness of Arabica coffee farming. The data were collected from both primary and secondary sources. A total of 105 respondents were selected using simple random sampling. Data were analyzed descriptively and statistically using the Policy Analysis Matrix (PAM) method. The results showed that Arabica coffee farming in Kerinci Regency has both comparative and competitive advantages, with values of 0.21 and 0.24 respectively. The farm management system is highly profitable and efficient. However, the sustainability of Arabica coffee farming is not yet supported by government policies, particularly in terms of output prices, input prices, and input-output support. It is therefore recommended that government policies be established to protect prices in favor of farmers, improve access to agricultural credit, and facilitate the adoption of modern agricultural technologies.