Abstract
Objectives
Small industry thrives in Indonesia, and is one of the backbone of the Indonesian economy. One of these industries is home food industry (IRTP). It is highly vulnerable to health development due to food safety concerns, especially food poisoning. On that basis, the National Food and Drug Agency (BPOM) has made various regulations, programs, and activities related to the IRTP. Unfortunately, the program was not a lot of progress in recent years. This condition is raising a question whether or not it is necessary to continue the IRTP program. The purpose of this study is assessing the benefits and the costs of the IRTP certification program.
Methods
The study perspective is the government and IRTP. Benefit and costs analysis is applied in this study. Data was collected through a survey of 49 district/city health offices (DHO) and 453 IRTPs spread over 10 provinces. The data was processed using Microsoft Excel. The analysis is done by comparing the total benefit to the total costs (benefit cost ratio) and net present value for the period of 2011 to 2015.
Results
Cost of central government for IRTP issuance programs tends to increase, but that sourced from DHOs tend to be stable. Meanwhile, costs from the perspective of IRTP tend to rise from 2011 to 2015. Benefit cost ratio (BCR) from the government's perspective tends to go down, while BCR from the IRTP perspective tend to rise slightly. BCR as a whole tend to rise slightly, from 1.07 (2011) to 1.10 (2015).
Conclusions
IRTP issuance program is still worthy to continue because the benefit gained is greater than the costs incurred. Efforts to improve the program must be carried out both by improving performance, increasing officers capacity, regular monitoring, and ongoing coaching to the IRTP.
Small industry thrives in Indonesia, and is one of the backbone of the Indonesian economy. One of these industries is home food industry (IRTP). It is highly vulnerable to health development due to food safety concerns, especially food poisoning. On that basis, the National Food and Drug Agency (BPOM) has made various regulations, programs, and activities related to the IRTP. Unfortunately, the program was not a lot of progress in recent years. This condition is raising a question whether or not it is necessary to continue the IRTP program. The purpose of this study is assessing the benefits and the costs of the IRTP certification program.
Methods
The study perspective is the government and IRTP. Benefit and costs analysis is applied in this study. Data was collected through a survey of 49 district/city health offices (DHO) and 453 IRTPs spread over 10 provinces. The data was processed using Microsoft Excel. The analysis is done by comparing the total benefit to the total costs (benefit cost ratio) and net present value for the period of 2011 to 2015.
Results
Cost of central government for IRTP issuance programs tends to increase, but that sourced from DHOs tend to be stable. Meanwhile, costs from the perspective of IRTP tend to rise from 2011 to 2015. Benefit cost ratio (BCR) from the government's perspective tends to go down, while BCR from the IRTP perspective tend to rise slightly. BCR as a whole tend to rise slightly, from 1.07 (2011) to 1.10 (2015).
Conclusions
IRTP issuance program is still worthy to continue because the benefit gained is greater than the costs incurred. Efforts to improve the program must be carried out both by improving performance, increasing officers capacity, regular monitoring, and ongoing coaching to the IRTP.
Original language | English |
---|---|
Pages | A821 |
DOIs | |
Publication status | Published - 1 Nov 2016 |