The Competitiveness Improvement Strategy Of Aloe Vera Agroindustry In Pontianak Municipality

Abstract

Pontianak is one of the central productions of aloe vera in Indonesia which is mostly grown on a small and home scale industries. However, these agro-industry still face various problems, such as the difficulty of marketing product, lack of production technology, low of product quality and limited production capital, thereby affecting competitiveness and lead to the agro-industry has not developed. The purpose of this study were to (1) analyze the competitiveness condition of aloe vera agroindustry in Pontianak, (2) identify the factors that affect competitiveness of aloe vera agro-industry in Pontianak, (3) formulate a strategy to improve the competitiveness of aloe vera agro-industry for development of aloe vera agro-industry in Pontianak. Competitiveness analysis of the aloe vera agroindustrial conditions use Porter's Diamond theory approach. While to analysis of competitiveness determinats and the strategies formulation for improving competitiveness of aloe vera agroindustry uses Analytical Hierarchy Process (AHP), the hierarchical structure of the AHP is based on Porter‟s Diamond theory. AHP data obtained from experts who fill out a questionnaire in the form of pairwise comparisons assessment, then the data is processed using Expert Choice 2000 The result descriptive analysis showed that agroindustry aloe vera in Pontianak does not have competitiveness, because only one pair of main components which has a mutually supportive relationship among the six pairs of the main components in the system competitiveness of aloe vera agroindustry in Pontianak. Whereas the determinants factor in the competitiveness of aloe vera agroindustry in Pontianak are domestic demand conditions with subfactor home demand composition, and condition of the resource with the subfactor of human resource. Strategy priorities to improve competitiveness of aloe vera agroindustry in Pontianak are (1) to produce high products in accordance with the local and export market demand, (2) to create innovative products for all segments of the market demand. Polices which can be conducted by government in developing aloe vera agroindustry in Pontianak are (1) to design policy program of product standardization in national scale, (2) to conduct intensive counseling and guidance on the implementation of the operational standards of production (SOP), and (3) government cooperation with businesses in conducting trainings or seminars on entrepreneurship, in order to be open to entrepreneurs insight receiving and doing new things and be able to innovate to create the required product market