Irrespective of the success of the Indonesian Government to achieve
self-sufficiency of rice in 1985, and the rice price stabilization,
paddy growers still suffer from a very low price for their produce.
Koperasi Unit Desa (KUDs) –in Indonesian, or Village Unit Cooperative
(VUC) have been entrusted with the marketing of rice paddies although
their performance has always been less than satisfactory. One problem
experienced by the KUDs is not having sufficient cash to purchase and
process paddies into rice. The purpose of this study is to develop and
validate a simulation model to represent cash flows during one paddy
plantation season for a KUD (VUC). The simulation model is a decision
support tool that enables a KUD’s (VUC) management to determine the
maximum quantity of paddies to be purchased; the minimum borrowing and
additional borrowing; and the earnings before taxes. An investigator-
administrated questionnaire was used to collect historical data of the
twenty randomly selected KUDs (VUC) on Lombok Island to validate the
sub-models of the simulation model. The Kolmogorov- Smirnov Goodness of
Fit (two-sample), linear regression, correlation and t- tests were used
to validate the simulation model. The validation results have shown that
the sub-models of the simulation model are valid, and these may
contribute to the valid results of the simulation model. This study has
found that the limitations of the paddy storage building, drying floor,
and milling machine owned by the KUDs (VUC) may restrict the KUDs (VUC)
from buying the entire paddies harvested. Therefore, further research is
needed to find out the minimum capacities of those facilities enabling
the KUDs (VUC) to work efficiently.