Study for Development of Conventional Salt Pond Center in the South Coast Region of Sampang Regency, East Java Province

Abstract

Salt is a vital commodity that has an important role either for consumption or for various industrial activities. Salt demand has been increasing annually and apparently domestic production has not fulfilled the demand. Sampang is one of regency in Jawa Timur Province which has comparative advantages because of its widest conventional salt pond in Madura island. Development of conventional salt pond center in the south coast region of Sampang Regency is an attempt to address the national shortage of salt and also to increase regional economic. This research aims: (1) to identify potential land for extension of the salt ponds, (2) to analyze land rent of various land use types and compare it with salt ponds, (3) to determine and to compare the financial benefits among harvesting methods in the salt production, and (4) to formulate the strategic direction for development of conventional salt pond center at the study sites. The results show that there were 2 398.55 hectares of potential land for extending salt ponds consisting of 2 142.45 ha of paddy fields, 152.38 ha of aquaculture ponds, 54.91 ha of field/moor, 42.36 ha of swamp, 5.72 ha of scrub and 0.74 ha of mixed gardens. Land rent of trade and service activity, residential, ”jambu air” orchard, teak garden, irrigated field, rainfed, banana plantation and mango orchard were higher than land rent of salt pond which was ranging from 1 675 to Rp2 954 IDR per m2 per year. While paddy field, bamboo gardens, and fish ponds were underneath salt pond. Salt ponds regarding its suitability, land rent and type of land use could be extended in these type of land use respectively, i.e: aquaculture ponds, rainfed cropland, swamp, shrub, paddy fields, banana plantation, mango orchards, and bamboo gardens. All of harvesting methods in salt production are financially feasible to continue (NPV > 0; IRR > discount rate). Payback period and Net BCR show that the geomembrane method was more profitable than the “maduris” and the “portugis” method. Combination of strategic alternatives selected by A’WOT as the primary strategy to develop conventional salt pond center in the south coast region of Sampang Regency are: (1) strengthening the institutions of salt farmers to assist regulations enforcement, (2) increasing volume of production and increasing salt quality, and (3) expanding and streamlining the distribution network by government intervention.