Agroindustrial Journal 8 (2) 2021, 567-573 ISSN 225-6137 (print), ISSN 2302-3848 (online), doi: 10.22146/aij.v8i2.76732 567 The Implementation of Activity-Based Costing on Black Rice Supply Chain in Sleman District, Yogyakarta Anggriani Dwi Putriasih 1 , Dyah Ismoyowati *,1 , Endy Suwondo 1 1 Department of Agroindustrial Technology, Faculty of Agricultural Technology Universitas Gadjah Mada, Jl. Flora No.1 Bulaksumur 55281, Indonesia. Email: dyah_ismoyowati@ugm.ac.id* Abstract As the primary rice consumers, Indonesians, especially people in Yogyakarta, particular consumers progressively changed their carbohydrate intake from white rice to black rice because of human health benefits. Consequently, from 2015 to 2018, Yogyakarta black rice farm extended its arable land, production, and productivity to fulfill the demand. The research aims to help the actor of business to supervise the activities, wasting higher costs and reducing the profit by analyzing the logistics cost structure along the black rice supply chain with Activity-Based Costing (ABC). The results found that the highest cost proportion of farmers (63.57%), farmer groups (69.97%), and distributors (50.47%) take place in the material handling activity. In comparison, retailers spend most of the cost on inventory activity (64.29%). Keywords: activity-based costing, black rice, logistics activities, logistics cost, supply chain 1. INTRODUCTION Most Indonesian consume rice every day. This habit makes food diversification a challenge. From 2012 to 2015, Indonesia was in the 3rd position, and total rice consumption per year reached 38.24 million tons (Suwandi, 2016). According to FAO, in 2014, Indonesia was in the 3rd world rank after China and India in rice production (Anonim, 2014). Many people want to live healthier by consuming healthy food, including pigmented rice. One of the most popular pigmented rice is black rice. Black rice is widely consumed as a functional food because it contains anthocyanins that function as an antioxidant. Functional food is a natural food containing one or more compounds that benefit human health. Black rice is considered capable of reducing cholesterol levels that trigger the appearance of liquid coronary heart disease and clogged arteries (Kristamtini, et al., 2012). In Yogyakarta, the demand for black rice increased from 900 tons in 2013 to 1,200 tons in 2015. Meanwhile, in 2016 pigmented rice per capita consumption in Yogyakarta was 1.2 kg/capita/month, with the purchase average being 3.5 kg/month (Wuryadani, et al., 2016). Thus, between 2015 to 2018, Sleman black rice farming has extended its arable land, production, and productivity. Each tier of the black rice supply chain (farmers, farmer groups, distributors, and retailers) yields logistics costs. They source from its production activities and possibly affect the generated profit. In a supply chain system, the fluctuating cost in a tier certainly involves the other tier. For example, the black rice prices at the farmer's tier are Rp 18,000 per kg while the retailer's price is Rp 30,000 per kg. When farmers experience increased costs, they possibly raise their product prices. Consequently, retailers would undoubtedly set a higher price to keep the profit. To observe the gap in prices between tiers, this study attempt to analyze the logistics cost structure of the black rice supply chain. Observing the logistics cost structure is essential to identify the structure, explore the most influenced costs component on their respective logistics activities, and determine activities that should be controlled and improved. Therefore, the analysis suggests that the black rice business actor should supervise the activities, wasting higher costs and reducing the profit. 2. MATERIAL AND METHODS This research focuses on the black rice supply chain in Sleman District. The black rice variety is restricted only to Semabada Hitam, which has the national certification of local black rice. The respondents who participated in the research are the black rice business actors.