Journal of Economic Education Analysis of Soybean's Marketing

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Journal of Economic Education Analysis of Soybean's Marketing JEE 7 (1) 2018 : 60 - 69 Journal of Economic Education http://journal.unnes.ac.id/sju/index.php/jeec Analysis of Soybean’s Marketing Power to Support the Enhancement of Production in Central Java Renie Oelviani, Ratih Kurnia Jatuningtyas Balai Pengkajian Teknologi Pertanian Jawa Tengah, Indonesia. Article Info Abstract ________________ Article History: Soybean is one of the strategic commodities in Indonesia. Various Received February internal and external constraints are found in Indonesia’s soybean 2018 Accepted April 2018 production. This study aims to analyze the marketing power for Published June 2018 supporting the enhancement of soybean production in Central Java. ________________ Keywords: The location selection was done purposively in Grobogan and Soybean, SWOT Wonogiri Districts which are soybean centers in Central Java. The Analysis, Marketing. ____________________ study was conducted in 2014 through a focus group discussion (FGD) approach involving 17 key persons. The data obtained were analyzed using SWOT analysis. The result of SWOT analysis shows that soybean strength priorities in marketing to support the enhancement of soybean production in Central Java are (1) developing seed center to manage the availability of soybean needs in Central Java, including to develop and improve the quantity and quality of soybean produced by the farmers. , (2) soybeans price change based on its quality attributes (3) restriction for importing soybeans to stimulate local soybean cultivation; (4) requiring local soybean promotion agencies to explore potentials and educate the industry and community about local soybeans, (5) group learning and development for the farmer to obtain the best soybean prices, (6) soybean purchasing program at the local government production center for the local soybean processing industry. © 2018 Universitas Negeri Semarang Alamat korespondensi: p-ISSN 2301-7341 Jl. Soekarno Hatta KM.26 No.10, Tegalsari, Bergas Lor, Bergas, Sikunir, Bergas Lor, Bergas, Kab. Semarang, Central Java 50552 e-ISSN 2502-4485 E-mail: [email protected] 60 Renie Oelviani & Ratih Kurnia Jatuningtyas. / Journal of Economic Education 7 (1) 2018 : 60 - 69 INTRODUCTION of self-sufficient inability. This condition will also deplete the nation’s foreign exchange. Soybean Soybean is one of the strategic self-sufficiency is also essential to support commodities, preceded by rice and corn. agroindustry, improve employment opportunities, Although this plant has never been the main and save nation’s foreign exchange (Supadi, source of food compared to rice, soybean is still 2009). deemed to be strategic since it is an affordable To solve the problem, Agricultural source of vegetal protein, has a high economic Ministry has issued policy concerning the state of value, and significantly sought after by people to soybean self-sufficiency. The instrument of this fulfill their nutrition needs. (Direktorat Pasca policy is implemented by conducting Mass Panen Tanaman Pangan, 2012). For Indonesian, Intensification Program (Inmas), Special soybean becomes the source of raw material for Intensification Program (Insus), Sekolah Lapang tofu, tempe, soy sauce, and livestock food Pengelolaan Tanaman Terpadu/ SL PTT (Field industries, and Indonesia is the largest tempe Educational Institute of Integrated Agriculture producer in the world and the largest market of Management), and the expansion of plantation soybean in Asia (BPS, 2017). areas (PAT). Nevertheless, the policy Acknowledging that the role of soybean is implementation specifically in regards of soybean strategic, rest assured that the demand of soybean cultivation development still faced with some every year increases alongside the surge of obstacles as follow: (1) the problem of high level population in Indonesia. This continuous of soil acidity on the expansion of new plantation demand enables the domestic production of areas, (2) the high risk of erosion on the new soybean. In 2016, the production of soybean plantation areas due to the bumpy or hilly texture stood at 859.653 tons of dried seeds (BPS, 2017), of the land, (3) and according to prediction figure in 2017, the limited availability of prime seedlings national production of soybean was at 542.446 with both sufficient quantity and precise quality tons and a plunge of production number occurred of time as per demands, (4) the limited ability of between the year of 2016 and 2017 at 36,90. The farmers to access technology, and (5) the low direct consumption of soybean was price within the level of farmers (Sudaryanto et approximately 1,8 million tons (Susenas, 2017), al., 2001). hence the production of soybean within the Due to some obstacles mentioned, the price country only can cover approximately 50% of becomes both an interesting and classical problem consumption. Therefore, there is still a deficit of which affects farmers’ decision to produce soybean every year forecasted to be at the number soybean (Darmadjanti, 2005). In some cases, of around 1,05 million tons, in which it needs to farmers have a low bargaining power hence the be fulfilled by imports (BPPP, 2014). price is determined by sellers one-sidedly (Rante, The dependence towards imported soybean 2013). This phenomenon also occurs in Central will affect the national economy, and if this Java, in which soybean production is centered to condition continues, it may threaten national Grobogan Regency and Wonogiri Regency that resilience status and disturb social, economic, and experience the lack of production issue to fulfill political stability, thus followed by people’s the needs of industries where soybean becomes welfare to be at stake (Supadi, 2009). Budi and the source of raw material. This results in the use Aminah (2010) stated that soybean self- of imported soybean to support the demand. The sufficiency becomes essential due to two reasons: dependency to imported soybean is caused by the (1) social and economic aspects will be affected fact that soybean within local production scale is due to the decrease of soybean production only planted at least two times per cultivation demand, looking at the fact that soybean is an seasons, hence the demand is more likely to affordable source of protein sought by people; and increase every time. Therefore, there is a (2) the position of the country will be weak with relatively high gap between demand and the possibility of impact to wider aspects because production, resulting the need to turn to imported 61 Renie Oelviani & Ratih Kurnia Jatuningtyas. / Journal of Economic Education 7 (1) 2018 : 60 - 69 soybean as the alternative to fulfill the need of for Crops and Livestocks of Pati Regency),Bulog soybean industries. Divisi Regional Jawa Tengah(BulogCentral Java Many discussion and research had been Regional Division); and Private bodies such as: done to tackle this problem concerning soybean Koperasi Pengrajin Tahu Tempe Indonesia, commodity. The aim of this research is to analyze KOPTI (The Union of Tofu and Tempe Producer to what extent is the power of soybean marketing in Indonesia), tofu/tempe entrepreneurs, seeds to support the enhancement of soybean entrepreneurs, and soybean farmers. production in Central Java, hence it is expected to retrieve policy recommendation to improve the SWOT Analysis production of soybean in Central Java. SWOT analysis utilized in this research is the identification of factors systematically to METHODS formulate company’s strategies (Rangkuti, 2005). The use of this analysis method is based on the The research was conducted in Grobogan logic to enhance strengths and opportunities, but and Wonogiri Regency in the year of 2014. The at the same time minimize weaknesses and location was selected purposively since the two threats. After identifying both internal and regency were the central production of soybean in external factors, categorized in strengths, Central Java. This location was expected to weaknesses, opportunities, and threats, then the represent the soybean agribusiness description strategies can be determined to reap benefits from due to its wide outreach of contribution given by the opportunities available, as well as to minimize the two regencies to Central Java. or even eradicate the threats. The strengths of Two types of research data obtained were organization are the positive sides of the as follow: (1) Primary data obtained from Focus organization/community itself that can guide Group Discussion (FGD) and interview with toward wider opportunities utilized to develop keypersons including a range of topics such the business. The weaknesses of organization are strengths, weaknesses, opportunities, and threats what the organization is lacking in regards of the formulation to improve soybean production in skill and resources. SWOT matrix helps the Central Java, (2) Secondary data from BPS, formulation of alternatives or strategies according Agricultural Institution (Dinas Pertanian of to the combination between the four factors; Grobogan regency and district’s monography strengths, weaknesses, opportunities, and threats data. by the development of four types of strategies, as The samples are 17 keypersons involving follow: SO (Strengths – Opportunities), WO governmental bodies: Dinas Pertanian Tanaman (Weaknesses – Threats), ST (Strengths – Threats), Pangan dan Hortikultura Provinsi Jawa Tengah and WT (Weaknesses – Threats) (Rante, 2013) as (Agricultural Agency for Crops and Horticulture depicted by Table 1. in Central Java), Dinas Koperasi dan UMKM The collected data
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