An Interpretive Structural Modeling (ISM) approach for Institutional Development in the Central Java Potato Agroindustry

Abstract

The decision-making process in potato agro-industry is a community-based action that involves many stakeholders. Thus every effort to empower potato agroindustry institutions has a strong relationship with the condition of the techno-social stakeholders. The research aims to find out the key factors in the development of potato agroindustry institutions in Central Java Province. This research was conducted in Wonosobo District, Central Java in 2019. Data were analyzed by the Interpretive Structural Modeling (ISM) approach. The results showed that there were five main elements in potato agroindustry institutional development, namely the main actor elements, needs, objectives, main constraints faced and benchmarks. Based on this study it was concluded that the key factors that must be considered in institutional development of agro-industry are farmers, fostering potato-based business actors, quality assurance, quantity guarantee, providing information on potato prices, non-standard transportation and the creation of new jobs. Therefore, it is recommended that the central and regional governments prioritize management of these key factors in the potato agro-industry institutional development efforts.