Formulation for Development Strategy of Gayo Coffee Agroindustry Institution Using Interpretive Structural Modeling (ISM)

Abstract

Institutional aspect is one of strategic aspect for an agroindustry development, including Gayo coffee agroindustry in Province of Aceh, Indonesia. Institution has important role as medium for innovation distribution, certification, and quality management of agroindustry, that the institution conduciveness is very much determining the development of the agroindustry itself. The purpose of the study was to formulate strategy of Gayo coffee agroindustry institution by using interpretive structural modeling (ISM). The study result showed that it was important to formulate strategy of each element in the development system of Gayo coffee agroindustry institution. For the element program goal, strategy that was necessary to be done was improvement in human resources and institutional performance. In element obstacles, the chosen strategy was to build cooperative relationship among agroindustry's actors that need to be optimized. For element activity, the main strategy was to enhance the human resources capacity of agroindustry's actors. In the element indicator of program success, the recommended strategy was the establishment of agroindustry institutional system that is conducive and continues to grow. The last element was actors, with strategy focused on developing farmers and farming group. Result from these strategies formulation became valuable reference for follow-up plan of Gayo coffee agroindustry institution development in Province of Aceh, Indonesia, and also could be a model for development of agroindustry institution of other commodities.

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