5.Conclusion and Recommendation
Carrot and chili have comparative advantages and can be developed further to secure the future of community on Mount Merapi slope. The social profits of carrot and chili farmings were much larger than private profit. This suggested that there were indirect transfers of farmers to the community. The non-tradeable inputs have been used efficiently and give added value to the farmers. Domestic demand of carrot and chili were more profitable provided by domestic production rather than import. Farmers
received prices of carrot and chili lower than they should. Carrot and chili farmers did not get product price protection. Farmers paid the non-tradeable input of carrot and chili farmings cheaper than they should. For tradeable input of carrot farming, farmers were paying higher than it should while for chili farming famer were paying less than it should. Both carrot and chili farming have not received adequate protection. Carrot can be developed further by the existence of price protection and necessary efforts to increase production and productivity, thus the cost per unit was less expensive. Chili has a comparative advantage and can be further expanded through expansion, the addition of more capital and intensive
maintenance. Therefore, to ensure the sustainability of the horticulture agribusiness region development as a socio-economic recovery for the communities of Mount Merapi slope after the eruption, it is needed the
following supported strategies and policies, namely 1) government intervention to protect the carrot and chili farming both in terms of input and output ; 2) subsidies to overcome the problem of high prices of
carrot inputs ; 3) ban import for carrot and chili; 4) regulation for the
price of carrot and chili; 5) facilitate infrastructure of carrot and chili production center. The success of this program will recover the real
socio-economic conditions and ensure the future security of the people on the Mount Merapi slope which is prone to disasters.