Advanced Search
MyIDEAS: Login

Improving the Business Climate in NTT : The Case of Agriculture Trade in West Timor


Author Info

  • Widjajanti Isdijoso Suharyo


  • Sudarno Sumarto
  • Nina Toyamah
  • Adri Poesoro
  • Bambang Sulaksono
  • Syaikhu Usman
  • Vita Febriany
  • Harry D.J. Foenay
  • Rowi Kaka Mone
  • Thersia Ratu Nubi
  • Yakomina W. Nguru


Efforts to improve the business climate in East Nusa Tenggara (NTT) Province are still facing significant obstacles. Moreover, a healthy business climate is needed to create conditions conducive to hastening development, increasing the employment field, and adding to local revenue. In June-August 2006, SMERU conducted a study of the business climate in NTT, concentrating on four districts and one city in West Timor. The study aims to identify various government policies at the central, provincial, and district/city level, which are directly and indirectly related to market structure, the flow of goods, fee structures, and prices received by producers and traders of agricultural products. The study also examines the impact of various agricultural product charges on provincial and district/city local revenue. The information and data was gathered from various respondents, including producers (farmers, livestock producers, fishermen, and home industry operators); traders (intermediate traders to exporters); as well as relevant government offices and agencies. The main finding of the research is that district/city local governments in West Timor are still attempting to increase local revenue by imposing various charges on the trade of agricultural commodities, although the total charges are currently lower than the period prior to 1997. Forestry products and large livestock (mainly cattle) attract the most charges. The study made several other findings. Firstly, in an effort to avoid a central government regulation that limits the total charges, the NTT local government has endeavored to reinvent charges as third party contributions or administration fees. Secondly, although the impact of official charges on the local budget (APBD) is relatively small, it can trigger the emergence of various unofficial charges, or bribes. Thirdly, agricultural producers generally have small-scale enterprises and weak bargaining powers as selling prices are still determined by several big inter-island tradersthus forming a monopsony environment.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22540.

as in new window
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:eab:tradew:22540

Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page:
More information through EDIRC

Related research

Keywords: business climate; charges; commodities; agriculture; local government; permits;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pradhan, Deepa & Ancev, Tihomir & Drynan, Ross G. & Harris, Michael, 2009. "Management of Water Reservoirs (Embungs) in West Timor, Indonesia," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48052, Australian Agricultural and Resource Economics Society.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:eab:tradew:22540. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.