“…Besides the geographical and economic agglomeration, transaction costs may arise from other sources, such as financial constraints that limit the capability of small-scale milkfish farmers, which leads to the inability to produce at the economics of scale (Rimmer et al, 2013), regulation and standardization of fish produce (Sonvinsen & Standal, 2019), or other social factors such as social capital (networking, trust, and other social interaction) and access to key information of the business (Setyanto & Iskandar, 2021). Once again, it is necessary to categorize the source of transaction costs based on the commodities and characteristics of society, along with its institutional arrangements and regulation to determine the exact composition of cost structure for aquaculture business.…”