Abstract: Rice as a major staple food for the population of Indonesia is a strategic commodity not only from social and economic aspects but also political views. Rural and agricultural characteristics with poverty and limited employment opportunities have encouraged job migration out of agriculture. The development of rice cultivation and post-harvest technologies that support the development of equipment and machinery create the division of labor in the production process of rice. Work specialization of SMEs and farmers as the main actors initiate the development of rice industrialization. Most of rice SMEs are specilised in providing services include procurement of input production, machinery and agricultural equipment in the upstream business processing and marketing in the downstream business, warehousing, transport and financing. Rice industrialization with a major share of domestic market will increase the competitive market, value added, employment, income and may eventually boost economic grotwh of the region. Agricultural development policy is considered to change from merely on-farm focus to become more prevalent from upstream to down stream to encourage rice industry with the SMEs and farmers as the main actors.
Rahim Darma, Musliar Kasim, A. Nixia Tenriawaru and Letty Fudjaja, 2018. Rice Industry and SMEs Development in South Sulawesi. Research Journal of Applied Sciences, 13: 76-82.