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Research Article | Volume 2 Issue 1 (Jan-June, 2021) | Pages 1 - 9
Strategy Of Cocoa Commodity Based Agrowisata Development In Jembrana Regency
 ,
 ,
1
Travel and Tourism Business Study Program, Politeknik Nasional Denpasar
2
Agribusiness Study Program, University of Mahasaraswati Denpasar
Under a Creative Commons license
Open Access
Received
Nov. 5, 2020
Revised
Dec. 15, 2020
Accepted
Jan. 18, 2021
Published
Jan. 30, 2021
Abstract

Agro-tourism is a means of increasing added value, opening jobs, expanding markets for agricultural products, and supporting efforts to increase income and farmers' welfare. Characteristics of agro-tourism is a resources-based industry, the direction of its development strategy must be based on a potential resource area approach while still based on the concept of comparative advantage. Plantation agro-tourism development should refer to a superior commodity approach. Production diversification has not yet developed and its by-products have not been utilized. This study aims to formulate a cocoa commodity agro-tourism development strategy. The research object was cocoa farmers in Melaya District, Jembrana Regency using the SWOT analysis method. The results showed that the cocoa commodity agro-tourism development strategy was in quadrant I or a strategy made using all strengths to take advantage of opportunities, namely aggressive strategies. Aggressive strategy based on internal strength factors and opportunity factors which are external factors with alternative strategies: increasing farmers' independence through coaching and counseling, developing partnerships in agro-tourism activities to add value-added production of cocoa commodities.

Keywords
INTRODUCTION

Economic development in the era of regional autonomy faces various challenges, both from internal and external factors. The problem of inequality and the issue of globalization has implications for the acceleration of focused regional economic development through regional development and its flagship products. The current regional development paradigm needs to pay attention to the specificities of the region which can increase the potential of the region (1). Regional economic development efforts have the main objective of increasing the number and types of job opportunities by utilizing existing resources (2-3).

 

The agricultural sector is a sector that plays an important role in the Indonesian economy. Plantation as an integral part of the agricultural sector is a sub-sector that has an important and strategic role in national development. Its role is evident in the revenue of the State's foreign exchange through exports, providing employment, meeting domestic consumption needs, raw materials for various domestic industries, obtaining added value and competitiveness, and optimizing sustainable natural resource management. The focus of economic development must shift from agriculture to the industrial sector. The industry that processes primary agricultural products into processed products is agro-tourism. Agro-tourism is a means of increasing added value, creating employment opportunities, expanding markets for agricultural products and supporting efforts to increase farmers' income and welfare (4). The characteristics of agro-tourism are resource-based industry, the direction of its development strategy must be based on a potential resource area approach while still based on the concept of comparative advantage (5). Therefore, a touch of policy for the development of regional agricultural development is still very much needed to improve the welfare of the farming community (6).

 

The plantation sector is still a mainstay for the contribution of increasing local revenue in Bali Province, therefore a touch of policy for the development of regional agricultural development is still needed to improve the welfare of farming communities (6). The increase in area and production of plantation crops in Jembrana Regency is considered to be still insufficient in creating more job opportunities because the production of plantation crops is still not processed at a further level. Plantation crop yields traded by farmers on average are still limited to the on-farm agribusiness level with the added value for farmers that is still too small so that farmers' income is inadequate. The role of the agro-tourism sector can increase added value, employment, and household income (7-8).

 

Plantation agro-tourism development should refer to a superior commodity approach. Until now, there has been no accurate reference for the Jembrana Regency Government to determine appropriate industrial policies for cocoa commodities that provide adequate added value and contribute high to regional economic growth. Production diversification has not yet developed and its by-products have not been utilized. This is due to the low level of knowledge and skills of farmers, limited processing facilities and infrastructure, and relatively small business capital. This study aims to formulate a development strategy for cocoa commodity agro-tourism in Jembrana Regency. This research is important to carry out because it is useful in developing policy strategies related to aspects (components) that affect the development of agro-tourism. The hope is that the Regional Government, especially Jembrana Regency, can provide facilities for the development of cocoa commodity agro-tourism. These facilities can be in the form of intensive coachings such as entrepreneurship and counseling. In addition, it is necessary to encourage partnerships between small and medium scale entrepreneurs and large-scale entrepreneurs, especially in terms of product marketing and quality guidance to add value-added to cocoa commodity production.

RESEARCH METHODS

This research was conducted in 3 villages, Melaya District, Jembrana Regency with a focus on developing cocoa agro-tourism. The respondents were 50 people, including 40 farmers (internal respondents) and 10 people (external respondents). Data was collected through interviews with officials from the Jembrana Regency Agriculture and Plantation Agency, the Tourism Office, the Jembrana Regency Environmental Service, and related agencies at the district level. The data collected is in the form of primary data from related respondents and secondary data from various agencies both at the central and regional levels. In detail, the type of data and analysis used is to formulate a strategy for developing cocoa agro-tourism using the SWOT analysis method.

 

SWOT analysis is a way of analyzing internal factors and external factors to become a strategic step in more profitable business optimization (9). SWOT analysis is an important part of the strategic management planning process (10). SWOT analysis is designed to be used in the early stages of decision making and as strategic planning in a wide variety of applications. The benefits of a SWOT analysis: (1) increase managerial awareness of environmental change, (2) increase resource allocation decisions, (3) facilitate risk management, (4) act as an early warning system, and (5) focus attention on key influences on strategic change. The SWOT analysis is carried out in three stages, namely data collection, analysis, and decision making. The model used as an analysis tool is the SWOT matrix (strengths, weaknesses, opportunities, threats). Data analysis steps are carried out in this research: (1) classifying the data, what factors are the strengths and weaknesses as internal factors for the development of cocoa agro-tourism, opportunities and threats as external factors in the development of cocoa agro-tourism. This classification will produce a SWOT information table, (2) conduct a SWOT analysis, which is to compare the external factors of opportunities and threats with internal factors of strength and weakness, and (3) the results of the analysis are then interpreted and developed into a decision to choose a possible strategy to be implemented. The strategy chosen is usually the most likely outcome (most positive) with the least risk and threat. The identification of the factors of strength (S), weakness (W), opportunity (O), and threat (T) is carried out by interviewing the parties involved in the development of cocoa agro-tourism.

RESULTS AND DISCUSSION

Cocoa Commodity Agro-tourism Development Strategy

The strategy for developing agro-tourism for cocoa commodities in Melaya District, Jembrana Regency is influenced by several factors (internal and external), which can be strengths or weaknesses, opportunities, or threats.

 

Internal Factor Analysis

The components of internal factors that contain the strengths and weaknesses of cocoa agro-tourism.

 

Strengths:

  1. Strong motivation to try,

  2. Land availability, high yielding varieties, and sufficient raw materials are available and easy to obtain by farmer households and small industries, as well as land ownership status, which is mostly owned land,

  3. The institutional structure and working mechanism must interact well. Existing institutions are expected to produce and seek markets in collaboration with local governments, and

  4. The diversity of processed products provides benefits, and the way they are managed is not complicated and raw materials are always available.

 

Weakness:

  1. Poor leadership,

  2. Low farmer education,

  3. The skills of agro-tourism actors are still not good,

  4. Lack of technology adoption rate,

  5. The role of women is not sufficient to support the running of cocoa agro-tourism,

  6. Poor coordination among plantation commodity entrepreneurs,

  7. Business costs are very limited,

  8. Less than optimal business profits and a lack of a distribution network that supports the marketing of cocoa commodities

 

External Factor Analysis

Opportunities:

  1. Local government support is very large: export issues, taxation, markets, licensing and performance of extension workers,

  2. The climatic conditions, geography, and location are appropriate,

  3. There are still opportunities for the application of agricultural tools and machines as well as the processing of cocoa commodity plantation products, both in terms of cultivation, harvest, post-harvest, and the food industry.

  4. There are still opportunities for marketing cocoa products.

  5. There is still access to credit, especially for the development of agro-tourism for cocoa commodities, and

  6. The high demand for consumers and market absorption capacity for cocoa commodities.

 

Threats:

  1. Government policies that do not limit imports, especially plantation commodities,

  2. The low access to the marketing of farmers in marketing harvested products is inseparable from the condition of the location which is quite far from the market location and inadequate infrastructure, in addition to the desire to progress and the lack of knowledge levels coupled with the role of middlemen who are quite dominant which makes the condition of farmers weak.

  3. Farmers usually sell their products around the cultivation location so that the price they get is less than optimal, and

  4. Inadequate means of transportation.

 

Weighting matrix of IFAS and EFAS

The results of observations and interviews with respondents after calculating the weight, scale, and value are calculated, the results of the weight, scale, and value calculation are obtained.

 

Table 1. Weighting Matrix, Scale, and Value of Internal Factors (Strengths) in Cocoa Commodity Agrotourism Development in Jembrana Regency

No

Internal variables

Strength

Weight

Scale

Score

(Weight x Scale)

1

Aspects of Human Resources

 

 

 

 

a. Motivation in doing business

0,15

4

0,60

2

Natural Resources Aspects

 

 

 

 

a. Land availability

0,15

5

0,75

 

b. Land Ownership Status

0,10

4

0,40

 

c. Availability of superior varieties

0,05

4

0,20

 

d. Access to resources / raw materials

0,10

3

0,30

3

Institutional Aspects

 

 

 

 

a. Institutional structure

0,10

4

0,40

 

b. Institutional working mechanisms

0,05

3

0,15

4

Business Aspects

 

 

 

 a. Business Diversity

0,05

2

0,10

 b. Management

0,10

3

0,30

 c. Availability of raw materials

0,15

5

0,75

Total

1

3,95

Source: Primary Data Analysis, (2020)

 

Table 2. Weighting Matrix, Scale, and Value of Internal Factors (Weaknesses) in Cocoa Commodity Agro-tourism Development in Jembrana Regency

No

Internal variables

Weakness

Weight

Scale

Score

(Weight x Scale)

1

Aspects of Human Resources

 

 

 

 

  1. Leadership in the company

0,15

3

0,45

 

  1. Educational level of agro-tourism behavior

0,10

2

0,20

 

  1. Skill Level

0,15

2

0,30

 

  1. Technology adoption rate

0,15

2

0,30

 

  1. Gender inequality

0,05

2

0,15

2

Institutional Aspects

 

 

 

 

a.   Coordination

0,15

2

0,30

3

Business Aspects

 

 

 

 

a.   Business costs

0,10

3

0,30

 

b.   Business profit

0,10

3

0,30

 

c.    Distribution Network

0,05

3

 

Total

1

2,45

Source: Primary Data Analysis, (2020)

 

Table 3. Weighting Matrix, Scale, and Value of External Factors (Opportunities) in Cocoa Commodity Agro-tourism Development in Jembrana Regency

No

External variables

Opportunities

Weight

Scale

Score

(Weight x Scale)

1

Government Policy Aspects

 

 

 

 

a. Government policies (regulations / laws) that 

support exports

0,05

4

0,20

 

b. Tax assignment

0,02

2

0,04

 

c. Market policy

0,03

2

0,06

 

d. Licensing

0,05

2

0,10

 

e. Extension performance

0,10

3

0,30

2

Geographical Aspects

 

 

 

 

a. Climate

0,05

4

0,20

 

b. Geography

0,05

4

0,20

 

c. Location

0,05

3

0,15

3

Technology Aspects

 

 

 

 

a. Cultivation / farming

0,10

4

0,40

 

b. Alsintan

0,05

3

0,15

 

a. Post-harvest

0,05

3

0,15

 

b. Processing of results

0,10

2

0,20

4

Socio-Economic Aspects of Culture

 

 

 

 a. Marketing of results

0,10

3

0,30

 b. Access credit

0,05

2

0,10

 c. Partnership pattern

0,05

2

0,10

 d. Consumer needs

0,05

2

0,10

 e. Market absorption

0,05

2

0,10

Total

1

2,85

   Source: Primary Data Analysis, (2020)

 

Table 4. Weighting Matrix, Scale, and Value of External Factors (Threats) in Cocoa Commodity Agro-tourism Development in Jembrana Regency

No

External variables

Threats

Weight

Scale

Score

(Weight x Scale)

1

Government Policy Aspects

 

 

 

 

a. Import policy

0,25

1

0,25

2

Geographical Aspects

 

 

 

 

a. Market aspect

0,30

2

0,60

3

Socio-Economic Aspects of Culture

 

 

 

 a. Competition in the free market

0,20

1

0,20

 b. Transportation problem

0,25

3

0,75

Total

1

1,50

Source: Primary Data Analysis, (2020)

 

Table 1 shows that the highest level of strength possessed for the development of cocoa agro-tourism towards increasing farmers' income in Jembrana Regency is the availability of land and the availability of sufficient raw materials. Table 2 shows that the weaknesses of the development of cocoa agro-tourism are the leader in the company, the level of skills, and the level of technology adoption. After conducting an assessment of the internal conditions of the development of cocoa agro-tourism, the total strength factor value is 3.95 and the weakness factor value is 2.45. There is a difference of 1.50 which means that it has the strength in developing cocoa agro-tourism.

 

Table 3 shows that the highest level of opportunity in the development of cocoa agro-tourism is cultivation/farming, extension performance, and product marketing. Table 4 shows that the threat in the development of cocoa agro-tourism is the problem of inadequate transportation and insufficient market access. After assessing the external conditions in the development of cocoa agro-tourism, the total opportunity factor value is 2.85 and the threat factor value is 1.5. So the difference is 1.35, meaning that there is an opportunity in developing cocoa agro-tourism. When compared between the value of internal factors and the value of external factors, it is found that the total value of internal factors is 6.40 and the total value of external factors is 4.35, so there is a difference of 2.05, meaning that the development of cocoa commodity agro-tourism has the ability and can rely on internal factors.

 

Formulation of Cocoa Agrotourism Development Strategy

Strategy alternatives are prepared based on the interaction of internal and external factors obtained based on the analysis that has been done. Alternative strategies in developing cocoa agro-tourism using the SWOT matrix can be seen in table 5. Several alternative strategies in developing cocoa agro-tourism. The strategy in developing cocoa agro-tourism based on the SWOT matrix analysis is as follows.

 

Table 5. SWOT Matrix for Cocoa Commodity Agro-tourism Development Strategy

IFAS

 

 

 

 

 

 

 

 

               

 

 

                 EFAS

STRENGTH (S)

WEAKNESS (W)

  1. There is motivation in trying
  1. Leadership in the company
  1. Availability of land suitable for cocoa commodities
  1. Low education level of agro-industry players
  1. Land ownership status (farmer owner)
  1. Low skill level
  1. Availability of superior types / varieties of cocoa commodity
  1. Low adoption rate
  1. Access to adequate resources or raw materials
  1. Large gender inequality
  1. Institutional working mechanisms
  1. Lack of coordination
  1. Business diversity
  1. Lack of assistance in business costs
  1. Management
  1. Lack of business profit
  1. The large availability of cocoa commodity raw materials
  1. Uneven distribution network

 

OPPORTUNITIES (O)

SO STRATEGY

ST STRATEGY

  1.  Government policies (laws /regulations) that encourage exports
  1. Increasing the independence of farmers through guidance and counseling.
  1. Increase in farmer productivity.
  1. Extension performance
  1. Strong motivation, availability of land, and diversity of businesses that can be done.
  1. Conduct a more intensive demonstration plot on appropriate technology.
  1. Climate
  1. Access to credit and the availability of processing technology should be the basis for expanding market access outside the district and meeting consumer needs according to their tastes.
  1. Cooperation with other parties, especially in capital, marketing and technology.
  1. Cultivation / farming
  1. Development of partnerships in agro-tourism activities in an effort to add value-added to production.
  1. Improved human resource skills on cultivation / farming, post-harvest, processing and marketing of cocoa products.
  1. Post Harvest
  1. Community empowerment in an effort to improve the economy by utilizing soft loans.

 

  1. Processing of results
  1. Development of regional potential to support commodity agro-tourism and business diversity that can be done. Access to credit and the availability of processing technology should be the basis for expanding market access outside the district and meeting consumer needs according to their tastes.

 

  1. Marketing of results
  1. Development of partnerships in agro-tourism activities in an effort to add value-added to production.
 
  1. Access Credit
  1. Community empowerment in an effort to improve the economy by utilizing soft loans.
 
  1. Partnership Patterns
  
  1. Consumer Needs

 

 
 

 

 

THREAT (T)

WO STRATEGY

WT STRATEGY

  1. Import policy
  1. Farmer group business development
  1. Increasing the use of technology through guidance and counseling
  1. The market aspect is not yet broad
  1. Opening and strengthening new market networks
  1. Community empowerment in an effort to create new jobs
  1. Competition in the free market
  1. Providing certainty for business guarantees carried out by farmers
 
  1. Inadequate transportation problems
  

Source: Primary Data Analysis, (2020)

 

The strategy in developing cocoa commodity agro-tourism is based on SWOT matrix analysis is as follows.

 

SO strategy

  1. Increasing the independence of farmers through guidance and counseling.

  2. Strong motivation, availability of land, and diversity of businesses that can be done.

  3. Access to credit and the availability of processing technology should be the basis for expanding market access outside the district and meeting consumer needs according to their tastes.

  4. Development of partnerships in agro-tourism activities to add value-added to production.

  5. Community empowerment to improve the economy by utilizing soft loans.

  6. Development of regional potential to support commodity agro-tourism and business diversity that can be done. Access to credit and the availability of processing technology should be the basis for expanding market access outside the district and meeting consumer needs according to their tastes.

  7. Development of partnerships in agro-tourism activities to add value-added to production.

  8. Community empowerment to improve the economy by utilizing soft loans.

  9. Development of regional potential to support cocoa commodity agro-tourism.

 

WO strategy

  1. Farmer group business development.

  2. Open and strengthen new market networks.

  3. Assure the business assurance carried out by farmers.

 

ST strategy

  1. Increase in farmer productivity.

  2. Conduct a more intensive demonstration plot on appropriate technology.

  3. Cooperation with other parties, especially in the capital, marketing, and technology.

  4. Improved human resource skills on cultivation/farming, post-harvest, processing, and marketing of cocoa products.

 

WT strategy

  1. Increasing the use of technology through guidance and counseling.

  2. Community empowerment to create new jobs.

 

Table 6. SWOT Analysis Weighting Matrix

Strength

Score

Weakness

Score

 
  1. Motivation in doing business

0,60

  1. Leadership in

0,45

 
  1. Land availability

0,75

  1. Company

0,20

 
  1. Land ownership status

0,40

  1. The level of education of agro-industry players

0,30

 
  1. Availability of superior species /varieties

0,20

  1. Skill level.

0,30

 
  1. Access to

0,30

  1. Adoption rate

0,15

 
  1. Resource or

0,40

  1. Technology.

0,30

 
  1. Raw material

0,15

  1. Gender inequality

0,30

 
  1. Institutional structure

0,10

  1. Coordination

0,30

 
  1. Institutional working mechanisms

0,30

  1. Business costs

0,15

 
  1. Business diversity

0,75

 

 

 

Total

3,95

Total

2,45

 

Opportunities

Score

Threats

Score

  1. Government policies (laws / regulations) that encourage exports

0,20

  1. Import policy

0,25

  1. Tax assignment

0,04

  1. Market access

0,60

  1. Market policy

0,06

  1. Competition in the free market

0,20

  1. Licensing

0,10

  1. Transportation problem

0,75

  1. Extension performance

0,30

 

 

  1. Climate

0,20

 

 

  1. Geography

0,20

 

 

  1. Location

0,15

 

 

  1. Cultivation / Farming

0,40

 

 

  1. Farming tools

0,15

 

 

  1. Post-harvest

0,15

 

 

  1. Processing of results

0,20

 

 

  1. Marketing of results

0,30

 

 

  1. Access credit

0,10

 

 

  1. Partnership pattern

0,10

 

 

  1. Consumer needs

0,10

 

 

  1. Number of products (market absorption)

0,10

 

 

Total

2,85

Total

1,50

       

Source: Primary Data Analysis, 2020

 

Table 6 can be seen that the weight of each variable is the strengths of 3.95; Weaknesses are -2.45, so that the value of the internal factors (X) = (+ 3.95) + (2.45) = + 1.50; opportunities / opportunities of 2.85; and threats/threats of -1.5, so that the value of external factors (Y) = (+2.85) + (-1.5) = +1.35. Variable weaknesses/weaknesses and threats/threats are conditions that reduce competitiveness in the development of cocoa agro-tourism so that the value is negative. These variables are included in the SWOT diagram, the calculation of the equation is presented in Figure 1. The SWOT diagram shows that point P: in the development of agro-tourism, cocoa commodities are located and this can be used as a guide in selecting strategies according to the quadrant that the points are in.

 

Figure 1. Position (P) in Cocoa Commodity Agroindustry Development in Jembrana Regency

 

Figure 1 shows the position of cocoa agro-tourism development in quadrant I or a strategy made by using all strengths to take advantage of opportunities in developing cocoa agro-tourism, namely an aggressive strategy. The aggressive strategy used is based on the strength factor which is internal and the opportunity factor which is an external factor in the development of cocoa agro-tourism with alternative strategies: increasing farmer independence through coaching and counseling, developing partnerships in agro-tourism activities to add value-added cocoa commodity production.

CONCLUSION

The cocoa commodity agro-tourism development strategy is in quadrant I or a strategy made by using all strengths to take advantage of opportunities, namely aggressive strategies. Aggressive strategy based on internal strength factors and opportunity factors which are external factors with alternative strategies: increasing farmers' independence through coaching and counseling, developing partnerships in agro-tourism activities to add value-added production of cocoa commodities.

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Strategy of Cocoa Commodity Based Agro-tourism Development in Jembrana Regency
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Published: 30/01/2021
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