Application of Institutional Engineering Economics for Plateau Vegetable Farmers for Tourism Market Access

Abstract

The purpose of this study is to model the strengthening of plateau vegetable farmers groups in Bali. One way is to transform group institutions into dynamic, empowered and business-oriented institutions. The study began by interviewing plateau farmer groups in Pancasari Village, Sukasada District of Buleleng and Candikuning Village, Baturiti Regency, Buleleng Regency, and also interviewing hotels as representatives of institutional consumers in the tourism industry. To get conditions that are more comprehensive, in-depth interviews were conducted with key informants. Next, a meeting of experts was followed to get a more comprehensive picture to be able to produce a model of strengthening the group of plateau vegetable farmers to meet the tourism market in Bali. ISM analysis is used in this research to get the driving force and dependence of the elements and sublements that build the modeling.Empirical facts, especially the difficulty of farmer groups to access institutional markets, production projections are not in accordance with institutional market needs, in groups there are no functional organizational structures (production divisions, processing divisions, and marketing divisions), and institutional supply chains that have not been optimally utilized as a reference in strengthening the farmer group expert meeting. As a result of the expert meeting, it was formulated that the establishment of a Socio-agro-enterprise institution would embrace inclusive all groups of vegetable farmers in the plateaus. The Village-owned business entity form is the right choice for new institutions. Village-owned business entity plateau vegetable farmers are the main players in the vegetable business operating in Bali. In running its business, Village-owned business entity carries out a vertical integration strategy that has a vegetable plantation and a packing place. However, to meet institutional consumer market demands beyond existing capacities, it is necessary to implement a vertical coordination strategy with Village-owned business entity partners in the open market, for the procurement of ready-to-sell vegetables or other groups of vegetable growers.Strengthening a group of vegetables oriented to the development of organizational management and strategic marketing and supported by government regulations in fostering market infrastructure ensures an increase in the performance of the vegetable supply chain and tourism market access. Implementation of an effective model of strengthening the plateau vegetable farmers group requires multisectoral synergy to increase innovation support and strengthening programs.

Keywords: strengthening model of farmer groups, plateau vegetables, institutional consumers

DOI: 10.7176/JESD/11-10-03

Publication date:May 31^st 2020