Pricing strategy at the local salt industry institutional structure of East Java, Indonesia

Authors

  • Siti Komariyah Department of Economics and Development Studies, Faculty of Economics and Business, University of Jember, Indonesia
  • Lilis Yuliati Department of Economics and Development Studies, Faculty of Economics and Business, University of Jember, Indonesia
  • Mustofa Mustofa Program of Economics Development Study, STIE Mandala Jember, East Java, Indonesia
  • Nely Supeni Program of Economics Development Study, STIE Mandala Jember, East Java, Indonesia

DOI:

https://doi.org/10.22437/ppd.v9i3.11698

Keywords:

AHP, Salt farming, Salt market

Abstract

This study aims to create a strategy to increase local salt prices in the East Java Region. The analytical method used in this study is the Analytical Hierarchy Process (AHP) method to create a strategy to increase local salt prices in East Java. The analysis reveals that the problems in the field can be classified into three groups of problems, namely salt quality problems, marketing problems, and problems in financing. Based on these problems, the main policy alternatives we make are product standardization, market regulation, and financial regulation.

Downloads

Download data is not yet available.

References

Badan Pengkajian dan Pengembangan Perdagangan. (2016). Info Komoditi Garam. Salim, Z. & Munadi, E. (Eds.). Jakarta: Al Mawardi Prima.

Biesenthal, C., Clegg, S., Mahalingam, A., & Sankaran, S. (2018). Applying institutional theories to managing megaprojects. International Journal of Project Management, 36(1), 43–54. https://doi.org/10.1016/j.ijproman.2017.06.006

Clegg, S. (1981). Organization and Control. Administrative Science Quarterly, 26(4), 545–562. https://doi.org/10.1093/OBO/9780199756384-0068

Corporación Financiera Internacional. (2011). Scaling Up Access to Finance for Agricultural SMEs Policy Review and Recommendations. October, 79. http://documents.worldbank.org/curated/en/477491468162872197/pdf/713200WP0Box37000Agrifinance0Report.pdf

Dizioli, A., Guajardo, J., Klyuev, V., Mano, R., & Raissi, M. (2016). Spillovers from China’s Growth Slowdown and Rebalancing to the ASEAN-5 Economies. Working Paper. International Monetary Fund.

Drake, S. L., Lopetcharat, K., & Drake, M. A. (2011). Salty taste in dairy foods: Can we reduce the salt? Journal of Dairy Science, 94(2), 636–645. https://doi.org/10.3168/jds.2010-3509

Feldman, E. R. (2020). Corporate Strategy: Past, Present, and Future. Strategic Management Review, 1(1), 179–206. https://doi.org/10.1561/111.00000002

Food and Agriculture Organization of the United Nation. (n.d.). Chapter 9: Marketing Information Systems. Retrieved May 10, 2020, from http://www.fao.org/3/w3241e/w3241e0a.htm

Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104. https://doi.org/10.1080/09692290500049805

Jensen, M.C. & Meckling, W.H. (1976). Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structure. Human Relations, 3(4), 305–360.

Kristianto, F. (2013). An introduction to Contract Farming. Technical Centre for Agricultural and Rural Cooperation (ACP-EU), 1–8.

Laiho, T. (2011). Agency theory and ownership structure-Estimating the effect of ownership structure on firm performance. [Master's thesis] 87. Department of Economics, Aalto University, School of Economics. Retrieved from: https://aaltodoc.aalto.fi/handle/123456789/629

Lewis, A. C., Cardy, R. L., & Huang, L. S. R. (2019). Institutional theory and HRM: A new look. Human Resource Management Review, 29(3), 316–335. https://doi.org/10.1016/j.hrmr.2018.07.006

Li, H., Ni, F., Dong, Q., & Zhu, Y. (2018). Application of analytic hierarchy process in network level pavement maintenance decision-making. International Journal of Pavement Research and Technology, 11(4), 345–354. https://doi.org/10.1016/j.ijprt.2017.09.015

Maertens, M., & Vande Velde, K. (2017). Contract-farming in Staple Food Chains: The Case of Rice in Benin. World Development, 95, 73–87. https://doi.org/10.1016/j.worlddev.2017.02.011

Mahalingam, A., & Levitt, R. E. (2007). Institutional theory as a framework for analyzing conflicts on global projects. Journal of Construction Engineering and Management, 133(7), 517–528. https://doi.org/10.1061/(ASCE)0733-9364(2007)133:7(517)

Muhandhis, I., Susanto, H., & Asfari, U. (2019). Development of system dynamics model to increase salt fulfillment ratio. Procedia Computer Science, 161, 867–875. https://doi.org/10.1016/j.procs.2019.11.194

Niu, B., Jin, D., & Pu, X. (2016). Coordination of channel members’ efforts and utilities in contract farming operations. European Journal of Operational Research, 255(3), 869–883. https://doi.org/10.1016/j.ejor.2016.05.064

Pangestu, R. G. (2018). Perlindungan Hukum terhadap Petambak Garam Rakyat Dikaitkan dengan Berlakunya Peraturan Pemerintah Nomor 9 Tahun 2018 tentang Tata Cara Pengendalian Impor untuk Komoditas Perikanan dan Pegaraman sebagai Bahan Baku dan Bahan Penolong Industri. Dialogia Iuridica, 10(1), 77–95. https://doi.org/10.28932/di.v10i1.1064

Rochwulaningsih, Y. (2013). Tata Niaga Garam Rakyat Dalam Kajian Struktural. Jurnal Sejarah Citra Lekha, 17(1), 59–66.

Rochwulaningsih, Y. (2017). Salt Production Business Potential in Aceh as Capital for the Coastal Communities Welfare. Journal of Maritime Studies and National Integration, 2(1), 23–30. https://doi.org/10.14710/jmsni.v2i1.2882

Rochwulaningsih, Y., Sulistiyono, S. T., Utama, M. P., Masruroh, N. N., & Rukayah, S. (2019). Traditional knowledge system in palung salt-making in Bali Island. Journal of Ethnic Foods, 2, 4–10. https://doi.org/https://doi.org/10.1186/s42779-019-0018-2

Rozack, A. (2018). Hasil Penelitian Lab, Kualitas Garam Lokal Lebih Bagus dari Impor. Jawa Pos. https://radarsurabaya.jawapos.com/read/2018/02/21/51283/hasil-penelitian-lab-kualitas-garam-lokal-lebih-bagus-dari-impor

Santosa, G. W. (2015). Development of Traditional Salt Production Process for Improving Product Quantity and Quality in Jepara District, Central Java, Indonesia. Procedia Environmental Sciences, 23(Ictcred 2014), 175–178. https://doi.org/10.1016/j.proenv.2015.01.027

Slimane, B.K., Chaney, D., Humphreys, A., & Leca, B. (2019). Bringing institutional theory to marketing: Taking stock and future research directions. Journal of Business Research, 105, 389–394. https://doi.org/10.1016/j.jbusres.2019.06.042

Sudaryana, B., & Pramesti, P. (2018). The Strategy of Welfare Improvement for Salt Farmers in Indonesia. MATEC Web of Conferences, 05062, 1–7. https://doi.org/https://doi.org/10.1051/matecconf/201815005062 The

Ton, G., Desiere, S., Vellema, W., Weituschat, S., & D’Haese, M. (2017). The effectiveness of contract farming for raising income of smallholder farmers in low†and middleâ€income countries: a systematic review. Campbell Systematic Reviews, 13(1), 1–131. https://doi.org/10.4073/csr.2017.13

International Finance Corporation. (2014). Access to Finance for Smallholder Farmers. Washington, DC: International Finance Corporation. Retrieved from: https://openknowledge.worldbank.org/handle/10986/21679 License: CC BY 3.0 IGO

Wang, H. H., Wang, Y., & Delgado, M. S. (2014). The transition to modern agriculture: Contract farming in developing economies. American Journal of Agricultural Economics, 96(5), 1257–1271. https://doi.org/10.1093/ajae/aau036

Wati, Y. M., Daryanto, A., & Setiawan, I. (2018). Pengembangan Strategi Bersaing PT. Garam (Persero) Dalam Tataniaga Garam Indonesia. Jurnal Kesejahteraan Sosial, 2(01), 21–27. https://doi.org/10.31326/jks.v2i01.149

White, G. P. (1987). The implementation of management science in higher education administration. Omega, 15(4), 283–290. https://doi.org/10.1016/0305-0483(87)90016-8

Wuepper, D., & Sauer, J. (2016). Explaining the performance of contract farming in Ghana: The role of self-efficacy and social capital. Food Policy, 62, 11–27. https://doi.org/10.1016/j.foodpol.2016.05.003

Yavuz, F., & Baycan, T. (2013). Use of Swot and Analytic Hierarchy Process Integration as a Participatory Decision Making Tool in Watershed Management. Procedia Technology, 8, 134–143. https://doi.org/10.1016/j.protcy.2013.11.019

Yusuf, F., Yousaf, A., & Saeed, A. (2018). Rethinking agency theory in developing countries: A case study of Pakistan. Accounting Forum, 42(4), 281–292. https://doi.org/10.1016/j.accfor.2018.10.002

Downloads

Published

2021-08-31

How to Cite

Komariyah, S., Yuliati, L., Mustofa, M., & Supeni, N. (2021). Pricing strategy at the local salt industry institutional structure of East Java, Indonesia. Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 9(3), 257 - 278. https://doi.org/10.22437/ppd.v9i3.11698