Risk Assessment on Supply Chain of the Geographical Indication Granulated Coconut Sugar in Kulon Progo Regency, Special Region of Yogyakarta, Indonesia

Abstract

Granulated Coconut Sugar Kulon Progo Jogja, one of the certified geographical indication organic food products in Yogyakarta Special Region Indonesia, is produced and distributed through a supply chain, starting from farmers to exporters. Throughout its supply chain, there are risks to each tier affecting overall supply chain performance. Even though they have risks, not all tiers have the same vulnerability, depending on the ability of the risk owner to overcome them. Therefore, this study aimed to conduct a vulnerability risk assessment of the certified coconut palm sugar in Kulon Progo Regency, Special Region of Yogyakarta, Indonesia. In-depth interviews with 54 risk owners throughout the product supply chain were then carried out using purposive and snowball samplings. The stages of risk assessment, starting from the identification, analysis, and evaluation of risks, were carried out using the ISO 31000:2009 framework. Risk categorization at the first assessment stage and mapping of expected loss and vulnerabilities at the second stage were carried out using the Rapid Agricultural Supply Chain Risk Assessment (RapAgRisk) instrument. The results showed that there were 35 risk events in the farmers, collectors, sub-Control Processing Units (sub-CPUs), Control Processing Units (CPUs), and Small and Medium Enterprises (SMEs) of sugar in Kulon Progo, which consisted of various risk categories, i.e., weather risk; natural disaster risk; biological and environmental risks; logistic and infrastructure risks; market risk; as well as management and operational risks. The risk events in the supply chain of the Granulated Coconut Sugar Kulon Progo have various degrees of vulnerability, starting from limited, low, moderate, highly, to extremely vulnerabilities. Risk events that are classified as limited vulnerability were considered acceptable, and the risk owner has been able to handle these risks well so that mitigation proposals were not given, while other risk events need to be mitigated to reduce their severities.