Rural Agri-Food Industry Resilience in Indonesia

Abstract

The agri-food industry faces shocks to global and local socio-economic conditions. They are micro, small, and medium-sized enterprises (MSMEs) that absorbed a lot of labor during the Indonesian economic crisis and stood for decades. This industry may provide safety nets, especially for low-income communities carrying out productive economic activities in rural. Therefore, this study examines the extent of the agri-food industry’s resilience in rural areas by focusing on industrial and business structures and labor market conditions factors. This study used a case study approach through in-depth interviews with business owners. The rural agri-food industry made adaptations and innovations in production and financial management to resilience. This strategy raises the difference in its market segment. The difference in company size reduces local competition also. On the one hand, the management and control capabilities of family firms and the kinship or historical relationship between company owners and workers tend to increase this industry’s resilience. On the other hand, this industry has attached to local values and culture, making the demand for this agrifood-industrial product stable. The labor profile does not require high qualifications and is also dominated by housewives, and the flexibility of time and wages of the agri-food industry may suit rural conditions so that it can survive. In this regard, the proximity of locations between companies and between companies and workers is important for this industry’s resilience. Although the MSMEs scale agri-food industry is vulnerable, it could survive and recover as a driving force for the household economy in rural. Lessons and strategies are also presented for entrepreneurs and policymakers to increase the resilience of the agri-food industry.

E-grocery service loyalty: integrating food quality, e-grocery quality and relationship quality (young customers’ experience with local food)

“…Thus, they are a potential market for local foods sold via e-grocery services. Second, due to their awareness of local/traditional food, Indonesian consumption of local food purchased online has increased significantly (Cahyono, 2023; Fetriyuna, 2022; Rochman et al , 2021). Accordingly, comprehending their behavior is critical for building sustainable business strategies for any local food e-grocery business.…”

Characteristics of Fishery Industry MSMEs in Takalar Regency that are Resistant to Interferences in Uncertainty Era

“…Research opportunities are also very open to examine the resilience of MSME sectors including the fisheries sector in the era of uncertainty which is the object of this research (Octasylva, Yuliati, Hartoyo, & Soehadi, 2022;Rochman, Indratno, & Agustina, 2021). Previous research has recommended examining the resilience of MSMEs from the context, business scale, location where they operate, type of business and environment (Spivey, 2016;Wishart, 2018).…”

“…Previous research has recommended examining the resilience of MSMEs from the context, business scale, location where they operate, type of business and environment (Spivey, 2016;Wishart, 2018). MSMEs in the fisheries sector have experienced many disruptions, but in fact they are still able to survive and contribute to household welfare in rural areas (Hikmah & Nasution, 2018;Nurhayati et al, 2020;Rochman et al, 2021). Fishery sector SMEs that have survived for 5 years show that these SMEs have strategies to deal with various disturbances (Giardino, 2016).…”

Disorders Faced, Strategies of Survival, and Characteristics of MSME Entrepreneurs in the Fisheries Sector in the Era of Uncertainty

“…Fisheries business groups are micro, small, and medium enterprises (MSMEs) that absorbed a lot of labor during the Indonesian economic crisis and have been established for decades. Its role has been proven as a source of food, and a safety net, especially for low-income people carrying out productive economic activities in rural areas (Rochman et al, 2021). Takalar Regency was chosen as the research location because this regency has a large potential for fishery resources (Haidir, Hamzah & Jusni, 2020), so the fisheries sector is one of the three main contributors to the GRDP of Takalar Regency, namely agriculture, forestry, and fisheries (BPS, 2021).…”