Improving of Coconut Agroindustry Development Based on Key Elements of Actors and Linkage Structure: Existence from Konawe Island, Indonesia

Abstract

This paper explores the condition of the coconut agroindustry in Konawe Island, Southeast Sulawesi Province, Indonesia that has abundant natural resources of coconut plants and potential to increase the coconut agro-industrial development system (ADS) sector based on coconut utilization into cooking oil ingredients. The experimental method was applied using community focus group discussion (CFGD) approach to determine the elements of CADS actors and the Interpretive Structural Modelling (ISM) method to analyze and determine the actors as the main key elements in the CADS. The study found that coconut farmers and consumers are the main keys in the CADS in Konawe Island. The role of actor elements that influence CADS such as the banking sector, coconut farmers at the second level, department of industry and trade, local government, and collection traders at the third level. Classification of CADS actors has been obtained the linkage quadrant classification are coconut farmers, local government, plantation agency, coconut processing industry, and the department of industry and commerce, while the elements of consumers and universities are in independent quadrant. This study provides knowledge to CADS for improving the coconut agroindustry, especially those in the coconut fruit processing industry. As founders in this industry lack a business management background or experience in order to help them better prepare themselves and avoid failure early in their business. The findings of this study provide information for small coconut processing entrepreneurs on the influence on CADS growth of the relevant actor elements and structures.