POVERTY ERADICATION THROUGH INSTITUTIONALIZED-MODEL ENGINEERING OF SMALL-SCALED RURAL AGROINDUSTRY DEVELOPMENT IN REGENCY OF KARANGANYAR

Keywords :Agroindustry, institutionalization development, technological improvement

Kusnandar. Totok Mardikanto Agung Wibowo
LPPM UNS , DP2M, Penelitian, Hibah Kompetisi Strategi Nasional,2009

Agroindustrial development is a very strategic option in optimalizing agricultural sector. Through agroindustry, there will be constructed the increasing value-added. The objective of this study is to engineer the institutionalized-model of small-scaled agroindustry development by which producing institutionalized-conceptual model of small-scaled agroindustry development.
This research uses systematic approach to engineer the institutionalized model of small-scaled agroindustry development. Data analysis metod used in this study is analytical hierarchy process (AHP); intrepretative structural modelling (ISM); Hirschman-Herfindahl index analysis (HHI) and ratio concentration analysis (CRX); institutional performance analysis is conducted using descriptive method and Multi-Expert Multi-Criteria Decision Making (ME-MCDM). The determination results of potential agroindustry from which can be developed is small-scaled carrot-based agroindustry. The result of small-scaled carrot-based agroindustry shows that the key sub-elements on the required element are: market guarantee, raw-material supply continuity and capital access. The key sub-elements in the barrier element are: less capital, low human resource quality, less marketing strategy, low bargaining power of small- and medium-sized business. The key sub-elements on the probable transformation element are: upgrading of product quality and technological improvement. The key sub-elements on the objective element are: increasing the farmer’s income, increasing the small- and medium-sized business revenue, and raising the regional real income. The key sub-elements on the required activities are: the institutionalization development and technological improvement.
The Hirchman-Herfindahl index value is of 0.044 and the concentration of ratio (CR4) value is of 0.328. Based on the market structure classification, then the small-scaled carrot-based agroindustry raw material market has monopolistic competition in nature, so that the small-scaled carrot-based agroindustry bargaining power on the raw material trader has been relatively balanced. The most appropriate alliance model of small-scaled carrot-based agroindustry is business group networking through which then there will be achieved collective efficiency so that it will increasing the small-scaled carrot-based agroindustry bargaining power.