1
DEVELOPMENT STRATEGY OF MANGOSTEEN AGRIBUSINESS IN
WEST LOMBOK REGENCY
Introduction:
Mangosteen (Garcinia mangostana L.) is one of the tropical fruits that is favored by the
public and has high economic value. This fruit is nicknamed the Queen of tropical fruit (Cox
1988). Mangosteen fruit has high economic value and has good prospects to be developed as
an export commodity. (Qosim et al. 2012). In 2008 the export volume reached 6 million tons
of mangosteen fruit with an export value of US$ 3 611 995. However, this amount was
considered less than 10% of the total production (Yatman 2012). In 2014 mangosteen
production reached 114 755 tons with an average of 7.55 tons/ha (Directorate General of
Horticulture Ministry of Agriculture 2015). Mangosteen fruit consists of components such as
seeds, pulp, and skin (Kader 2005). Mangosteen fruit has a thick skin, which is about 0.5 cm
or more. The skin contains pectin, tannin, katechin, rosin, dye, and yellow sap (Cahyono
2011). The utilization of mangosteen pulp is quite numerous, including as raw material for
making syrup, juice, jam, jelly, and puree (Utami 2008). Examples of high-value processed
products include: mangosteen juice (US$ 20 per liter); mangosteen extract (US$ 12.64 per 60
tablets); mangosteen tablets (US$ 3.59 per 30 tablets); and mangosteen xanthone rich (US$
12.98 per 60 tablets) (Kastaman 2007). The nutritional composition of mangosteen pulp per
100 g includes 79.2 g water, 0.5 g protein, 19.8 g carbohydrate, 0.3 g fiber, 11 mg calcium,
17 mg phosphorus, 0.9 mg iron, 14 IU vitamin A, 66 mg vitamin C, vitamin B (thiamine)
0.09 mg, vitamin B2 (riboflavin) 0.06 mg, and vitamin B5 (niacin) 0.1 mg (Kwatiningsih et
al. 2009).
One of the mangosteen producing areas in Indonesia is West Nusa Tenggara (NTB)
Province with a total production in 2014 of 7 592 tons (West Nusa Tenggara Provincial Food
Crop Agriculture Office 2015). West Lombok is one of the top 10 mangosteen producing
regions in Indonesia (Qosim 2013). This production potential is still dynamic, this can be
seen from fluctuations in mangosteen production and prices in NTB, especially at the farm
level (Baker 2009). In West Lombok Regency, there are several mangosteen producing
centers, namely in Narmada, Lingsar, and Gunungsari sub-districts. Generally, the
mangosteen fruit produced comes from mangosteen trees owned by ancestors, some of which
were even planted during the royal era. Therefore, the planting pattern of farmers'
2
mangosteen plantations varies. This is because most mangosteen trees are planted
sporadically. The high production of mangosteen fruit in West Lombok Regency is also
supported by the tradition of planting mangosteen fruit in the yard or in public places such as
houses of worship. This contributes to the total production of mangosteen fruit produced in
West Lombok Regency. Mangosteen production is mostly sent outside Lombok to be
exported. In Lombok, there are no exporters or mangosteen processing industries in the form
of business entities. So far, mangosteen processed products have been produced to fulfill
tourism performance activities. Processing activities are carried out by farmers' wives,
especially farmer groups to fulfill exhibitions at tourism events. Mangosteen production in
West Lombok from 2009 to 2014, 3.901 tons. During the period 2009-2014, there were
fluctuations in mangosteen production characterized by drastic ups and downs in production.
This can be observed in Figure 1. This fluctuation in production causes an uncertain supply
of mangosteen fruit produced. Various efforts are made by farmers to overcome the decline in
income due to crop failure, one of which is to increase the number of seedling production to
be marketed.
Problem Formulation
Fluctuations in mangosteen production and low selling prices at the farm level are the
main problems faced by mangosteen farmers in West Lombok Regency. There were two crop
failures of mangosteen in West Lombok Regency, namely in 2010 and 2012. The various
problems faced by farmers attracted the author's attention to find out about the condition of
the mangosteen agribusiness system in West Lombok Regency to assess the extent to which
this mangosteen agribusiness can be developed, and how strategies should be formulated to
develop mangosteen agribusiness in West Lombok Regency. This is done by identifying the
condition of internal and external factors of mangosteen agribusiness.
Mangosteen Agribusiness Opportunities
The presentation of mangosteen fruit can be done in various ways, including
mangosteen fruit can be served in fresh form, as canned fruit, or juice. Traditionally,
mangosteen fruit is a medicine for mouth ulcers, hemorrhoids, and wounds. The rind is used
as a dye including for textiles and the boiled water is used as a traditional medicine. Tree
3
trunks are used as building materials, firewood, or crafts (Yatman 2012).
Mangosteen Fruit Processed Products
Initially, mangosteen is consumed as fresh fruit, however, as science develops and
xanthones are discovered, mangosteen is processed into specific products by changing the
original form. Mangosteen fruits are transformed into various pharmaceutical and health
products and various by-products, such as syrup, juice, puree, jelly, capsules and tablets. For
syrup, juice, jelly, and puree, the basic ingredient is the fruit pulp, the processing of which is
aimed at obtaining a good taste. For tablets and capsules, the basic ingredient is mangosteen
peel and the manufacturing is only intended as a pharmaceutical or health product (Yatman
2012).
Some processed products found by Iswari (2006) that can be managed industrially and
households are mangosteen syrup based on fruit peel, mangosteen syrup based on pulp,
mangosteen xanthones, mangosteen puree.
Fruit Peel-Based Mangosteen Syrup
The resulting mangosteen syrup does not use artificial coloring, but the color comes
from maroon mangosteen rind extract. This syrup can be used as a healthy and nutritious
drink, because it contains high xanthone. The addition of fruit peel extract to the pulp juice
produces mangosteen syrup with xanthone content reaching 104.05 mg/100 ml of mangosteen
syrup. In addition to containing high xanthone, mangosteen syrup from this invention also
contains high nutritional value (Iswari 2006).
Pulp-based Mangosteen Syrup
Mangosteen syrup processing technology is simple and can be implemented by home
industries and is feasible with a B/C ratio of 1.81. The shelf life of mangosteen syrup at room
temperature can reach one year when packaged in glass bottles. If not packaged with bottles,
mangosteen syrup only lasts up to 6 months (Iswari 2006).
Mangosteen Xanthones
Xanthones is made from mangosteen rind extract which is useful as a medicine because
4
it contains a very high xanthone which reaches 123.97mg/100ml. In addition to the xanthone
content in xanthones also contains other vitamins and minerals such as listed xanthone (mg)
123.97; vitamin B1 (mg) 20.66; vitamin B2 (mg) 1.79; vitamin B6 (mg) 0.948 and vitamin C
(mg) 17.92. The shelf life of xanthone can reach 10 months when stored in a cool place and
not exposed to direct sunlight (Iswari 2006).
Mangosteen Puree
Puree is a semi-finished material in the form of fruit pulp, made from fruit pulp that has
been processed into fruit pulp. Puree can be reprocessed into desired processed products.
Many countries abroad send mangosteen puree from Southeast Asia, especially Indonesia,
because mangosteen from Indonesia has a distinctive flavor and freshness. Therefore, this is a
business opportunity for farmers or processing business groups or investors in building the
mangosteen puree industry. Puree also contains xanthone, vitamin C, high calcium, and
minerals (Iswari 2006).
Mangosteen Post-Harvest Processing
To improve export and domestic markets, it is necessary to pay attention to proper post-
harvest handling so that fruit damage can be minimized. Mangosteen fruit wrapped in
polyethylene plastic bags with a thickness of 40 microns (0.4 mm) and pin-pricked with five
pieces and stored at 5o C can last for 18 days with fruit damage below 5%. Under these
conditions, there were symptoms of cracking of the fruit skin and translucent flesh in
addition to crusting and sap in the flesh. These conditions can be classified as damage
(Pankasemuk et al. 1996; Tongdee 1992 in Suyanti and Setyadjit 2007).
Storage treatment of mangosteen fruit using 30 cm x 40 cm plastic with 25 pin-prick
holes and storage at 15o C can extend the shelf life of the fruit for up to five weeks. Storage
of mangosteen fruit at 5o C using sealed polyethylene plastic bags (0.04 mm) then vacuumed
with 400 mbar pressure, was able to reduce the amount of fruit damage. In four weeks of cold
storage, the amount of fruit damage reached 12.9%. Storage of mangosteen fruit in
polyethylene plastic bags (0.04 mm) with 5 pin pricks at 5o C caused 15.1% damage and at
15o C the amount of damage was smaller (14.7%) (Suyanti and Setyadjit 2007).
Post-harvest processing of mangosteen fruit is currently low. Mangosteen is a fruit with
a short shelf life. Fruit damage such as sepals, stalks become not fresh, fruit hardens, mature
5
pulp tissue is gummy making it difficult to split, and separation of the flesh with the skin is
difficult to do. Such damage is often encountered after transportation and storage (Tongde
and Suwanagul 1989; Setyadji and Syaifullah 1994 in Suyanti and Setyadjit 2007).
Physical Characteristics of Mangosteen Fruit
The results of Iswari et al. (2005) and a number of other studies show that the largest
component of the entire mangosteen fruit is the peel, which is 70-75%, while the seeds are
only 10-15% and the pulp is 15-20%. The mangosteen fruit has several chambers or segments
with one seed in each segment, but only 1-3 seeds can become perfect seeds. Each seed is
enveloped by a pure white membrane, smooth, with a fresh taste. Organoleptically, the taste
of mangosteen tends to be uniform, namely sweet, sour, slightly astringent (Mardiana 2012).
The physical characteristics of mangosteen fruit can be observed in Table 1. Fruit height
ranged from 5.66 - 7.02 cm with fruit diameters ranging from 6.88 - 7.82 cm with an average
weight ranging from 106.2 - 219 g per fruit with fruit skin thickness ranging from 1.3 - 1.38
cm. The average length of seeds ranged from 2.26 - 2.48 cm with the average width of seeds
ranging from 1.5 - 5 cm and 1.68 cm. Based on observations, it is known that the color of the
seeds has no variation, all samples have a dark brown seed coat color (Qosim et al. 2011).
Ridho et al. (2014) said that the specific gravity of mangosteen seeds and pulp is 1.508 g/cm2
.The flesh of the mangosteen fruit is segmented, which ranges from 5 to 8 segments.
Mangosteen pulp is white in color and smooth in texture. Each segment of the pulp contains
large seeds. Mangosteen fruit has a thick skin, which is about 0.5 cm or more. The skin
contains pectin, tannin, katechin, rosin, dyes, and yellow sap (Cahyono 2011).
Several research centers provide classifications of mangosteen based on various
conditions or certain groupings. One of them, the Solok Fruit Tree Research Center
recommends three mangosteen clones as follows.
1. Large bunch: leaf length > 20 cm; width > 10 cm; rind thickness > 9 mm; fruit diameter
> 6.5 cm; fruit weight > 140 g; 1 fruit per bunch.
2. Medium group: leaf length 17-20 cm; width 8.5-10 cm; rind thickness 6-9 mm; fruit
diameter 5.5-6.5 cm; fruit weight 70-140 g; fruit per cluster 1-2 grains.
3. Small group: leaf length < 17 cm; width < 8.5 cm; fruit skin thickness < 6 mm; fruit
diameter < 5.5 cm; fruit weight < 70 g; fruit per cluster > 2 grains. The clones developed
are MBS1, MBS2, MBS3, MBS4, MBS5, MBS6, and MBS7 (Ministry of Research and
6
Technology 2010).
Strategy and Strategic Management
The strategic management process includes activities ranging from environmental
observation to performance evaluation. Management observes the external environment for
opportunities and threats and observes the internal environment for strengths and weaknesses.
The most important factors for the company are called strategic factors: strengths,
weaknesses, opportunities, and threats. After analyzing the strategic factors, management
evaluates their interactions and determines the company's mission accordingly. The first step
in formulating a strategy is the mission statement, which plays a role in determining the
company's goals, strategies, and policies. The company implements these strategies and
policies through programs, budgets and procedures. Finally, performance evaluation and
feedback to ensure proper control of company activities (Hunger and Wheelen 2008).
According to Hubbard (2004), strategies are decisions that have medium to long-term
implications for organizational activities, including the implementation of these decisions to
create value for customers and key stakeholders while beating competitors.
David (2011) states that strategic management is the art of formulating, implementing,
and evaluating cross-functional decisions that enable an organization to achieve its goals. A
company or organization will create a strategy that is different from other companies or
organizations according to its business objectives and conditions. Analysis or observation
needs to be done to develop the right strategy for the company. Analysis or observation in
strategic management includes environmental analysis (external and internal), strategic
formulation, strategy implementation and evaluation and control (Hunger and Wheelen
2010).
A good strategy understands the importance of consumer needs, consumer
segmentation, having distinctiveness and uniqueness in business including knowing how
competitors' strategies and how they will face the future (Hambrick and Frederickson 2001).
The company must also consider the company's capabilities and available resources including
the company's core competencies.
According to Collis and Rukstad (2013), the goal of this creative process is to find a
sweet spot or Mills-Scofield (2013) calls it a bright spot where the company's strategy is able
to fulfill its customers that cannot be fulfilled by its competitors. Mankins and Steele (2013)
7
state that the way to execute strategies to bring about successful performance changes
includes discussing strategy execution with other units in the company early (discuss
resource deployment early) and prioritizing strategies more explicitly so that all staff know
what strategies to focus on (identify priorities).
Russel (2013) argues about the importance of communicating strategy to all employees
of the company so that they should be involved and contribute to the implementation of the
strategy to be able to realize the strategy into business practices that result in successful
performance for the company.
The strategic management process consists of three stages, namely strategy
formulation, strategy implementation, and strategy evaluation (David 2011). Formulation,
implementation and evaluation or assessment activities in large organizations occur at three
hierarchical levels, namely corporate, business unit and functional levels. Strategy
formulation includes the development of a vision and mission, identification of external
opportunities and threats, awareness of internal strengths and weaknesses, setting long-term
goals, searching for alternative strategies and selecting a particular strategy to achieve the
goals. Strategy implementation is a stage that requires the company to set annual goals, make
policies, motivate employees, and allocate resources so that the strategies that have been
formulated can be carried out. Strategy assessment is an evaluation of the implemented
strategy.
Identification of the Organizational Environment
The environment in which an organization is located is divided into two groups, namely
the internal and external environment. The purpose of analyzing the company's internal
environment is to identify a number of strengths and weaknesses contained in the resources
and business processes of a company. Strengths are resources and business processes that can
create special competencies so that the company gains a competitive advantage. While
weaknesses are resources and business processes that can be unable to create special
competencies so that the company loses competition with other companies. External
environment analysis aims to identify a number of opportunities and threats in the company's
external environment. Opportunities are positive trends in the company's external
environment that have the potential to provide profits to the company. Meanwhile, threats are
negative trends in the company's external environment that have the potential to cause losses
to the company (Solihin 2012).
8
Identification of the internal environment is the first step to formulating a strategy.
According to David (2011), identification begins with analyzing all aspects within an
organization. The aspects analyzed to identify the internal environment include:
1. Management aspects
The management function consists of five basic activities: planning, organizing,
motivating, actuating, controlling, and delegating. Planning consists of all activities related
to preparing for the future. Specific tasks include forecasting, setting goals, establishing
strategies, and developing policies. Organizing includes all activities that result in all task
structures, and authority relationships. Specific tasks include organizational descriptions, job
specialization, job descriptions, span of control, unity of command, and job analysis.
Motivating includes efforts directed at shaping human behavior. Control refers to all
managerial activities directed at ensuring that actual results are consistent with planning.
Staffing is centered on personnel management.
2. Marketing aspects
Marketing is the process of determining, anticipating, creating, fulfilling consumer
needs and wants for goods and services. There are seven marketing functions, namely
customer analysis, product/service sales, product and service planning, pricing, distribution,
market research, and opportunity analysis.
3. Financial aspects
Financial condition is considered a single measure to determine the company's
competitive position and is an attraction for investors. Establishing the organization's
financial strengths and weaknesses is important to formulate strategies effectively. Liquidity,
solvency, working capital, profitability, asset utilization, cash flow and capital can eliminate
some strategies as viable alternatives. Financial factors can alter existing strategies and
change implementation plans.
4. Aspects of production
The production function of a business consists of all activities that convert inputs into
goods and services. Production management consists of five functions namely process,
capacity, inventory, labor and quality. Process concerns the design of the physical production
system. Capacity involves setting the maximum output level for the organization. Inventory
involves managing the quantity of raw materials, semi-finished and finished goods. Labor
decisions are concerned with managing skilled, unskilled and managerial labor. Quality
decisions aim to ensure that high quality goods and services are produced.
5. Research and development aspects
9
R&D budgets are directed at developing new products before competitors do,
improving product quality, or improving manufacturing processes to reduce costs.
Organizations invest in R&D because they believe that the investment will lead to superior
products and services and to gain a competitive advantage.
6. Aspects of management information systems
Information binds all business functions together and is the basis for all managerial
decisions. Information represents a major source of competitive advantage. Management
information systems aim to improve the performance of a business by improving the quality
of managerial decisions. An effective management information system collects, encodes,
stores, synthesizes and presents information in such a way that it is able to answer a variety of
operating and strategic questions. The core of the information system is a database that
contains a variety of documents and data that are important to managers.
According to David (2011), in general, the external environment is divided into two,
namely the macro environment and the industrial environment. However, external forces can
be divided into five broad categories including:
1. Economic strength, high economic growth will provide opportunities for companies in a
country to experience growth due to increased investment but on the other hand will
experience contraction due to a recession which can result in shrinkage of investment
activities so that it can threaten the continuity of their business activities. According to
Solihin (2012), various factors that need to be analyzed in the economic dimension
include: economic growth rate, interest rate policy, monetary policy, the amount of
government spending, policies to overcome unemployment, tax policy, exchange rate
policy, business cycle stage, disposable income, and devaluation / revaluation policy.
2. Social, cultural, demographic and environmental forces Social, cultural, demographic and
environmental conditions consisting of population growth rates, lifestyles, population
awareness levels of health and welfare, income distribution, labor mobility, education
levels, policies regarding the use of environmentally friendly products, environmental
carrying capacity for business sustainability.
3. Political, government, and legal forces Political, government, and legal factors can reflect
key opportunities and threats for small or large organizations. For companies that depend
on government contracts and subsidies, tax rate can have a significant effect. An
unfavorable political situation can have a negative impact on the business world and vice
versa. Increased global competition creates the need for accurate political, government and
legal forecasting.
10
4. Technological forces revolutionary technological changes and inventions have a dramatic
impact on organizations. Technological forces affect products, services, markets,
suppliers, distributors, competitors, customers, manufacturing processes, marketing
practices, and competitor positions. Technological advances can create new markets, result
in the development of new and improved products, change the relative competitive cost
position in an industry, and make existing products and services obsolete. Technological
change can reduce or eliminate cost barriers between businesses, create shorter production
chains, create technical skill shortages, and result in changes in the values and
expectations of employees, managers and customers. Technological advances can create a
more powerful competitive advantage.
Competitor strength
Competitive forces or the industry environment are described through Porter's Five
Forces Model. This model can identify threats stemming from five forces in an industry
(Porter 2008).
1) Competition between similar companies
Competition between similar companies is the most influential force compared to other
forces. The intensity of competition will increase if the number of competitors increases. This
happens because competing companies have the same size and capabilities, production
demand decreases, price cuts become commonplace. Competition also increases because
consumers are increasingly easy to change brands; when barriers to leaving the market are
high; when products are easily damaged; when competing companies differ in terms of
strategy, where they come from, and culture; and when mergers and acquisitions become
common in an industry. A company's strategies will be successful if they provide a
competitive advantage over those of its competitors.
2) Potential entry of new competitors
If new companies enter easily in an industry, the intensity of competition will increase.
The entry of new entrants is influenced by barriers. These barriers include the need for rapid
economies of scale, the need to acquire specialized technology and knowledge, lack of
experience, high customer loyalty, strong brand preference, large capital requirements, lack
of adequate distribution channels, government policies, lack of access to raw materials, patent
ownership, unfavorable location, backlash from incumbent firms, and potential market
saturation. However, these obstacles can be overcome with higher products, lower prices and
exceptional marketing resources.
11
3) Potential development of substitute products
Competitive pressure from substitute products increases if the relative price of the
substitute product falls and if the consumer's cost of switching to another product decreases.
The competitive strength of a substitute product can be measured by the market share
captured by the product, in addition to the firm's plans to increase its capacity and market
penetration.
4) Bargaining power of suppliers
The bargaining power of suppliers affects the intensity of competition in an industry,
especially if the number of suppliers is large, if good substitute raw materials are few, or if
the cost of replacing raw materials is very high. It is in the interest of both manufacturers and
suppliers to achieve long-term profits to help each other with reasonable prices, improved
quality, development of new services, timely delivery of goods, and reduced inventory costs.
The company may use a backward integration strategy to gain control. This strategy is
effective when suppliers are unreliable, their costs are too high, or they are unable to meet the
company's needs consistently.
5) Consumer bargaining power
If consumers are concentrated or in large numbers or buy in large quantities, then their
bargaining power can affect the level of competition in an industry. Consumers have high
bargaining power if they: easily and easily switch to other brands or competitors' substitutes;
occupy a very important place for the seller; sellers face the problem of declining consumer
demand; consumers hold information about the seller's products, prices and costs; consumers
are in control of what and when they can buy products.
SWOT Analysis
SWOT Matrix (Strengths, Weaknesses, Opportunities, Threats)
SWOT analysis as one of the tools used in determining company strategy, usually
begins with analyzing the internal and external situation. David (2002) SWOT Matrix
(Strengths, Weaknesses, Opportunities, Treats) as a tool to develop strategies based on
adjustments to the external environment (opportunities and threats) and internal (strengths
and weaknesses).
The SWOT matrix (David 2009) is an important matching tool to help managers
develop four types of strategies. The four strategies are as follows:
12
1. SO (Strengths - Opportunities) Strategy. This strategy uses the company's internal
strengths to seize opportunities that exist outside the company.
2. WO (Weaknesses - Opportunities) Strategy. This strategy aims to minimize the company's
internal weaknesses by utilizing external opportunities.
3. ST (Strengths - Threats) Strategy. Through this strategy the company tries to avoid or
reduce the impact and external threats by using its strengths.
4. WT (Weaknesses - Threats) Strategy. This strategy is a tactic to survive by reducing
internal weaknesses and trying to avoid threats.
The purpose of using the SWOT matrix is to comprehensively consider strengths,
weaknesses, threats and challenges so as to increase the effectiveness of customer service and
improve the performance of the service process provided. The SWOT matrix is important in
management concepts. The tool can help companies to be able to examine existing strengths
and weaknesses, so that companies can compete and have a view of future market behavior.
However, the SWOT matrix is not suitable for helping executives to solve company problems
every day. It is better for the company to solve its problems once a year using the SWOT
matrix.
Strategic Architecture
Strategic architecture is a strategic blueprint used to develop new functions in the
industry/organization/company, acquire new competencies or migrate from existing
competencies, and reconfigure customers/consumers that will be faced in the future (Hamel
and Prahalad 2000). In strategic architecture, identification is done about the things that must
be done by the company/organization today to face the future with a mutually agreed upon
time span. To build a strategic architecture is not an easy job. Top management of the
company must have a perspective on what new benefits or functionality will be offered to
customers in the future, a perspective on what exactly the new core competencies will be
needed to create these benefits, and how customers will be able to access these benefits most
effectively (Purnomo and Zulkieflimansyah 2007).
Strategic architecture shows the organization/company about:
1. What competencies to start building now
2. Customer groups that must begin to understand their current needs and desires.
3. New distribution channels to start looking for now, and
13
4. Priorities for the development of the organization/company that must be initiated from
now on Of course, these four components are intended to face the future of the
organization/company that must be initiated from now on. The survival and success of a
company depends on its ability t o monitor and adapt to its internal and external business
environment (Tan 2005). A complete strategic architecture needs to consider both core and
complementary components. Core components are crucial components that are sufficient
conditions for developing a strategic architecture. Included in the core components are the
vision and mission, organizational goals or objectives, industry foresight (outlook or picture
about the future of the organization/industry) and the challenges faced by the organization due
to changes in the organizational environment or the demands of changes in the role of the
organization due to changes in the organizational environment changes in the environment,
while the companion components are those that will complement the core components. The
companion component is an advanced derivative of the core component. Included in the
companion component are the core competencies of the organization that are further explored
from the vision, mission, goals/objectives of the organization and strategic intent that is
explored from the vision and mission of the organization (Yoshida 2006). The strategic
architecture drawing that will be made is a creative thinking process that combines art with
the strategic results obtained from the decision-making stage (Anggara 2015).
According to Yoshida (2006), strategic architecture is developed through an approach
by taking into account several elements, namely the vision and mission of the organization,
analysis of the internal and external environment of the organization, industry foresight,
organizational challenges and organizational goals.
1. Vision and mission of the organization
An organization's vision is a statement about the ideals it wants to achieve in the future
(what do we want to become). An organization's mission is a statement about the reason for
being.
2. Analysis of the organization's internal and external environment
Internal and external environmental analysis is the identification of internal (strengths
and weaknesses) and external (opportunities and threats) factors that affect the organization
now and in the future.
3. Industry foresight
Industry foresight is a mutually agreed best assumption about the future of an industry
or company or organization and based on this is built everything that is needed to support the
evolution of the business and provide a picture of the potential things in the organization to
14
be developed in the future and enable the organization to take a leadership position.
4. Organizational challenge (strategic challenge)
Organizational challenges are the means or operational procedures that an organization
must have and must apply to gain new competitive advantages and gradually. The
organizational plan challenge is also the initial plan (short-term goal) that the organization
needs to prepare including the business potential and the estimated investment required to
realize the new business.
5. Objectives to be achieved
The goals to be achieved are organizational objectives that have been quantified
properly. Goals are made in order to facilitate the organization in achieving its goals, both
short-term and long-term goals. Goals are identified by clarifying the vision, mission, and
goals of the organization. Usually the company's goals are the vision, mission, and goals of
the organization itself.
Review of Previous Research
Suri (2017) conducted research on the analysis of the competitiveness of mangosteen
commodities. The analysis showed that mangosteen farming in Karacak Village has comparative
and competitive advantages, as seen from the PCR and DRC values of 0.86 and 0.34. Overall, the
input-output policy implemented by the government has not been effective. Sensitivity
analysis shows that conditions that canKaracak in 2016 was financially and economically
profitable. This can be seen from the positive private and social benefits of IDR 2 840 448
and IDR 34 797 218 per hectare. The private profit is smaller than the social profit due to the
fact that the government policy as a whole has not been effective in protecting farmers so that
the producer surplus is reduced. Some farmers do not give special treatment to their
mangosteen plants to maintain their profits. The level of resource use efficiency shows that
mangosteen farming has a competitive advantage and comparative advantage. This can be
seen from the PCR and DRC indicators which are less than one, namely the PCR value of
0.86 and DRC of 0.34.
Astuti (2012) who conducted research on the development of the mangosteen fruit
supply chain in Bogor Regency stated that exporters received the largest percentage of added
value from all added value obtained from the mangosteen fruit business in the mangosteen
fruit supply chain managed by KBU Al-Ihsan. Although the percentage of added value
received by farmers is smaller than the percentage of added value received by exporters, the
15
costs incurred by farmers are also smaller than the costs incurred by exporters.
Febtyanisa (2013) conducted research on the Analysis of Organic Vegetable Business
Development Strategy at Cibolerang Agro Farmer Group, Selawi- Garut District. The
purpose of this research is to describe the organic vegetable production process and describe
the Cibo Agro organic vegetable supply chain structure model, identify and review internal
and external factors related to the development of organic vegetables, develop appropriate
and effective organic vegetable business development strategies for Cibo Agro farmer
groups. The analytical tools used in this research are IFE, EFE, IE, SWOT and Analytical
Hierarchy Process (AHP). The results of the IFE Matrix calculation show that in the strength
factor, the packaging and labeling factor is ranked first (0.448). In the weakness factor, the
absence of a contract system with suppliers has the highest weighted value (0.149). The total
weighted score obtained is 2,231. The results of the EFE Matrix calculation show that the
opportunity factor ranked first is the formation of an organic farming association. In the
threat factor, erratic climate and weather have the highest weighted value and are a big threat
to Cibo Agro farmers. AHP results show that at the Factor Level which is the top priority in
achieving the focus of Cibo Agro's organic vegetable business development strategy is
market potential, the Actor level which is the top priority is ICS Cibo Agro. At the goal level,
increasing farmers' income is the top priority (weight 0.372). Alternative priority strategies
obtained from the synthesis results are strategies to improve and conduct continuous
promotion (sustainability) to gain market and customer loyalty and attract public interest in
organic products.
Oktavia's research (2017) produced the results of analyzing the current business
integration process at PT Sierad Produce and the results of analyzing the future review of the
industry (industry foresight) is used as a reference to determine the company's future strategy.
Alternative company strategies are obtained based on three main objectives, namely
maximizing company integration, product development and market development. The main
priority of interest in external actors is consumers, and in the main goal is product
development.
Fauzi (2016) conducted research on red potato development strategy in Solok Regency.
The methods used in this research are qualitative and quantitative methods which include:
descriptive analysis to give an overview of the implementation of the red potato agribusiness
system in Solok Regency, farming analysis, IFE and EFE matrix analysis to identify internal
and external factors, SWOT analysis to develop strategies for developing red potato
agribusiness in Solok Regency and strategic architecture design to make recommendations
16
for red potato agribusiness development work programs in Solok Regency.
Puspasari et al. (2013) examined the Strategy for Potato Agribusiness Development
Based on Management Resources in Banjarnegara Regency. This study aims to identify
factors that influence the development of potato commodity agribusiness through the
resource management approach in Banjarnegara Regency, formulate strategies for developing
potato commodity agribusiness in Banjarnegara Regency, and determine the priority of
alternative strategies for developing potato agribusiness in Banjarnegara Regency. The
analysis methods used were prospective analysis and Analytical Hierarchy Process (AHP).
Based on prospective analysis, ten key factors influencing the development of potato
agribusiness in Banjarnegara were obtained. Based on AHP, the most influential factor in the
development strategy of potato commodity agribusiness development in Bajarnegara
Regency is productivity, while the actor that has the most important role in the potato
commodity agribusiness development strategy is the central/regional government. The
objective to be achieved, the most important is to increase farmers' income, then the alternative
strategy that is important to be carried out in the development of potato commodity
agribusiness in Banjarnegara Regency is the empowerment of farmers/farmer groups.
Andala et al. (2014) conducted research on the competitive and comparative advantages
of mangosteen farming in Tanggamus Regency. Based on the results of the study, it is known
that from several scenarios used in the sensitivity analysis, it can be seen that the PCR and
DRCR values are always smaller than one. This indicates that mangosteen farming in
Tanggamus Regency remains competitive and comparative after changes in the value of
inputs and outputs.
Research conducted by Kustiari et al. (2012) on the analysis of the competitiveness of
Indonesian mangosteen in the world market with a case study in West Sumatra. To analyze
the performance of Indonesian mangosteen in the world market, the study used Constant
Market Share (CMS) analysis for the period 2000-2009. Meanwhile, to measure
competitiveness, Policy Analysis Matrix (PAM) was used. The results showed that the
competitiveness of Indonesian mangosteen in the international market tended to decline. This
is indicated by the decline in Indonesia's export share in several export destination markets.
The results of the PAM analysis show that mangosteen farming in West Sumatra has
comparative advantages and competitive advantages. To improve the performance of
Indonesian mangosteen exports, efforts are needed to find markets with a large volume of
import demand with a growth rate higher than the average growth in world demand, as well
as improve the management of mangosteen farming so that better quality mangosteen fruit
17
can be produced.
Muslim and Nurasa (2011) conducted research on the competitiveness of mangosteen
export promotion commodities, marketing systems and their stability in the country (Case
Study in Purwakarta District, West Java). The results of this study showed that the exported
mangosteen was produced from several locations, which were limited to Java and Sumatra.
Nevertheless, there are still potential lands to be developed in mangosteen plantation areas on
an economic scale, such as Mamasa District (West Sulawesi), Dompu District (West Nusa
Tenggara), Poso District and Banggai District (Central Sulawesi) which are agro-climatically
very suitable for mangosteen plantation development, and whose production has not yet been
recorded. Demand for mangosteen exports from abroad has increased steadily from year to
year, and in 2008 mangosteen exports reached 15 203 344 kg with a value of $22 856 200,
and mangosteen exports actually still have a great opportunity to be increased again, because
the marketing of fruits including mangosteen has not been limited by quotas. On the other
hand, the demand for mangosteen commodities cannot be fully met, because the mangosteen
fruit traded in the export market mostly comes from smallholder farms that have not been
well maintained and the production system depends on nature (traditional). The results of the
sensitivity analysis of mangosteen using several scenarios, namely an increase in farm-gate
selling prices and an increase in world prices. At any price level, the PCR and DRC values
are always lower than 1, indicating that mangosteen farming is competitive and comparative.
Elpawati et al. (2013) examined the fertilizer business development strategy of UIN
Jakarta Compost House. The purpose of this research is to determine the internal and external
factors that become strengths, weaknesses, opportunities and threats for the UIN Jakarta
Compost House. knowing the position of the UIN Jakarta Compost House based on the IE
Matrix and nine strategy cells. Formulate alternative business development strategies that are
appropriate to be applied to the house. The methods and analysis used in this research are
divided into three stages, namely: Input Stage which consists of EFE Matrix and IFE Matrix.
Matching Stage with SWOT Matrix (Strengths, Weaknesses, Opportunities, Threats) and IE
Matrix (Internal, External). The stage of determining the priority of the company's strategy
(Decision Stage) based on the number of alternative strategies using the QSPM (Quantitative
Strategic Planning Matrix) method. The results of the QSPM Matrix, the main priorities that
can be carried out by Rumah Kompos are: (1) improving quality and production capacity
with a total score of 6,986 (2) market development with a score of 6,913 (3) cooperation with
partners and suppliers with a score of 6,020 (4) recruiting new workers with a score of 5,293
(5) improving the management system to withstand outside competition with a score of 4,893
18
(6) rearranging the organizational structure, division of tasks according to sop with a score of
4,740.
Aji et al. (2014) examined the Rice Commodity Agribusiness Development Strategy in
improving food security in Jember Regency. The purpose of this study was to analyze the
strengths, weaknesses, opportunities and threats to develop rice commodities in an effort to
improve food security, analyze the formulation of alternative strategies that are appropriate
for the development of rice commodities in an effort to improve food security, determine the
priority strategies that should be selected for the development of rice commodities in an effort
to improve food security, provide policy recommendations that must be done by the
central/regional government to improve food security. SWOT analysis is used to determine
alternative strategies that can be carried out by the government. QSPM analysis serves to
determine the choice of priority strategies in developing rice agribusiness in Jember Regency.
Descriptive method was used to explain the case study at the Agriculture Office of Jember
Regency with a sample of 35 respondents. Alternative strategies that can be done by the
government include: intensification of rice farming, synergy between farmers, entrepreneurs
and government, strengthening regional food policies that favor farmers, revitalization of
facilities and infrastructure, product differentiation. The strategy that is the main priority in
this study is the strategy of intensification of rice farming.
Solihah (2015) used SWOT analysis, Business Model Canvas and Strategic
Architecture methods. The strategy taken in this study is based on the results of a SWOT
analysis that assesses the nine building blocks in the business model canvas. The strategic
architecture design of KNM Fish Farm based on blue economy in 2014-2018.
Syaharbian (2014) provides an overview of strategy selection associated with the
problems faced in the object of research. Research on competitiveness and maintaining
competitive advantage is an important foundation for how companies excel in the midst of
existing competition. Arianti et al. (2015) conducted research on the Development Strategy
of Organic Japanese Spinach Agribusiness in Batur Village, Getasan District, Semarang
Regency. This study aims to analyze internal and external factors that affect the development
of organic Japanese spinach, formulate alternative strategies and determine strategic priorities
that can be applied in the development of organic Japanese spinach. Data analysis method
using (1) IFE Matrix and EFE Matrix, (2) Internal-External (IE) Matrix, (3) Matrix alternative
strategies. The IE matrix is in quadrant IV, in a position to grow and build. The QSP matrix
produces strategic priorities that can be applied in the development of Japanese Spinach
agribusiness in Batur Village, namely maintaining customer satisfaction by maintaining good
19
product attributes.
Dewi et al. (2016) conducted research on the Development Strategy of Organic Brown
Rice Agribusiness in Subak Wongayabetan, Mengesta Village, Penebel District, Tabanan
Regency. This study aims to determine alternative strategies that can be implemented by
Subak Wongayabetan in the development of organic brown rice agribusiness and priority
strategies that are appropriately implemented by Subak Wongayabetan in the development of
organic brown rice agribusiness. The methods used in this research are EFAS, IFAS, SWOT,
QSPM. The results of the research are increasing organic brown rice productivity, improving
organic fertilizer and pesticide processing skills, developing subak as agro-tourism,
collaborating with BUMDes, expanding organic rice fields, training in farm management and
recording, intensifying the use of brands and packaging, recruiting workers outside the area,
integrated pest and disease control, socializing organic products to consumers, intensifying
the Internal Control System (ICS), and improving the database and Management Information
System (SIM) to support the sustainability of organic certification. The priority strategy that
can be implemented by Subak Wongayabetan from alternative strategies is ICS
intensification. ICS intensification is carried out to support the sustainability of organic
certification through strengthening the commitment of subak members to farm organically
and monitoring the quality of organic brown rice.
Kamila's research (2017) entitled analysis of honey business development at CV Ath-
Thoifah with the Business Model Canvas approach resulted in a new business strategy,
namely by developing business in big cities outside Jabodetabek, adding distributors and
agents more intensely and establishing special partnerships. In addition, research from
O'Regan et al. (2008) entitled The Strategic Planning Environment Performance Relationship
Revisited in Manufacturing SMEs states that analyzing the company's internal and external
environment can provide guidance on implementing business strategies to achieve company
goals effectively.
Framework of Thought
The development strategy planning is carried out through three stages, namely the
data collection stage, the analysis stage and the strategy formulation stage. The data obtained
will be grouped to determine the factors that become Strengths, Weaknesses, Opportunities,
and Threats. Furthermore, these factors will be weighted and rated and the results
20
summarized in the EFE (External Matrix Evaluation) matrix and IFE (Internal Matrix
Evaluation) matrix. The values in the EFE and IFE matrices are processed to determine the
development strategy, then the development strategy that has been obtained is mapped into a
road map using mangosteen agribusiness development in West Lombok Regency using
Strategic Architecture.
Data Analysis Procedure
Data collection is carried out through several stages, starting with data collection
conducted by interviewing respondents. From the interview results, information will be
obtained related to internal (strengths and weaknesses) and external (opportunities and
threats) factors that affect the company's competitive strategy. In the second stage, the results
in the first stage are used to compile the second stage questionnaire. The second stage
interview assessed the SWOT factors with pairwise comparisons to determine the most
influential factors.
Data processing and analysis in this study were carried out qualitatively and
quantitatively. Qualitative data is presented in descriptive form to describe the overview and
internal and external factors. Quantitative data is in the form of weighting for internal and
external factors and then weighting for the decision-making stage and determining strategic
priorities. The analytical tool used is a method with SWOT analysis (Strength, Weaknesses,
Opportunities, and Threats). Then the mapping of program recommendations from
alternative strategies is carried out using the strategic architecture method.
Matrix (IFE) and Matrix (EFE)
At the input stage, all basic information regarding the internal and external factors of
mangosteen agribusiness in West Lombok Regency needed in formulating strategies is
summarized by the strategy maker. This can be done using two strategy formulation
techniques, namely:
1. Internal Factor Evaluation (IFE) Matrix
The IFE matrix is used to determine the internal factors of agribusiness related to
strengths and weaknesses that are considered important. The internal factor evaluation (IFE)
matrix is used to effectively and practically analyze the factors of the company's internal
environment that affect the business development strategy of the company (Dwinanto 2017).
21
According to David (2002), the stages of work on the IFE Matrix are the same as the EFE
Matrix, which is as follows:
Identify and examine in depth each factor that is a strength and weakness to be able to
develop an organic vegetable business in Indonesia.
a) Weight each factor with a number from 1 (not important) to 5 (very important). The
weight indicates the relative importance of the factor. The sum of all weights must equal 1.
b) Give a rating of 1 to 4 on each internal factor, where 4 is a major strength, 3 is a minor
strength, 2 is a minor weakness, 1 is a major weakness.
c) Multiplying the weight of each factor by the rating on each factor to obtain a weighted
score.
d) Add up all the weighted factors to get the total weighted score.
e) The total weighted score will range from 1 to 4. The number 4 indicates that the internal
conditions are very good, while the number 1 is the opposite. An illustration of the IFE
matrix can be seen in Table 3.
2. External Factor Evaluation (EFE) Matrix
The EFE matrix is used to evaluate external factors of mangosteen agribusiness.
External data is collected to analyze matters concerning economic, social, cultural,
environmental, political, governmental, legal, technological, competitive issues in the
industrial market where mangosteen agribusiness is located. This is important because
external factors directly or indirectly affect mangosteen agribusiness in West Lombok.
According to David (2002), external factor evaluation is used to evaluate external factors in
the company. The opportunity and threat factors identified in this study were evaluated by
external analysis using the EFE Matrix.
The results of the external analysis illustrate whether or not the opportunities that exist
can be responded to properly by the company, and whether the threats that will arise are
likely to be overcome. There are five steps that must be taken in developing the EFE Matrix
(David 2002), including the following:
List key external factors as identified in the assessment process. List opportunities first
and then threats. Weight each factor with a number from 1 (not important) to 5 (very
important). The weight indicates the relative importance of the factor. The sum of all weights
must equal 1. The next step is:
22
a) Give each key external factor a rating of 1 to 4 to indicate how effectively the current
strategy responds to that factor. The rating indicates how effectively the company
responds to the external factors. Thus, the value is based on the condition of the company,
viz:
1 is a below-average response
2 is the average response
3 is an above-average response
4 is a superior (exceptional) response
b) Multiplying the weight of each factor by the rating on each factor to obtain a weighted
score.
c) Summing up all the multipliers across all factors to get the total weighted score.
d) If the result obtained is 1, it means that the external situation is very bad or unable to take
advantage of existing opportunities and unable to overcome existing threats. A value of 4
means that the external situation is very good, which is able to take advantage of existing
opportunities (David 2002). An illustration of the EFE matrix can be seen in Table 4.
SWOT Analysis
The analytical tool used to analyze the environment in the form of strengths, weaknesses,
opportunities, and threats is called SWOT analysis or SWOT Matrix. This matrix provides an
overview where external environmental factors in the form of opportunities and threats are
combined with internal factors in the form of strengths and weaknesses so that in the end it
will produce several alternative business development strategies that can be implemented by
the company.
Some alternative strategies are (David 2006):
1. Strength - opportunity strategy (SO Strategy), which is a strategy that uses the company's
internal strengths to take advantage of external opportunities.
2. Weakness - opportunity strategy (WO Strategy), which is a strategy that aims to improve
internal weaknesses by taking advantage of external opportunities.
3. Strength - threat strategy (ST strategy), which is a strategy that uses internal strengths to
avoid or reduce the influence of external threats directly.
23
4. Weakness - threat strategy (WT Strategy), which is a defensive tactic directed at reducing
internal weaknesses and avoiding external threats.
Strategic Architecture
The business development strategy of a company cannot be separated from the
importance of long-term strategic planning. The long-term strategy mapping can be
implemented in the business development road map through a strategic architecture approach
(Yoshida 2006). Strategic architecture is the result of in-depth interviews with company
stakeholders such as the board of commissioners, directors, observers, researchers and related
elements regarding the company to be studied. Companies need to make long-term
investments in order to compete and overcome future market challenges (Acciaro M et al.
2017). Company challenges to gain an advantage in business competition can be identified by
determining short-term and medium-term priorities (Hamel and Prahalad 1995). Then focus
on the previously set organizational goals in formulating alternative strategies in SWOT. To
win business competition, companies are required to take a path of change to realize the
company's goals in order to optimize the potential of the company's core strengths. In
addition, collaboration with stakeholders will be an added value in the process of developing
the land port business (Bask et al. 2014).
Regional Potential
The construction of Lombok International Airport and the development of tourism
areas that seem to be increasingly widespread on Lombok Island lately do not necessarily
override the development of other sectors such as agriculture. This is because in addition to
being one of the main supporters of development, the potential of the agricultural sector is
also important.
Food crops include rice, corn, secondary crops, vegetables and fruits. As a rice center,
rice production in West Lombok Regency is an indicator of the success of agricultural
programs. However, the condition of other food crop products should also be seen to
illustrate the potential of agriculture. In collaboration with the Agriculture, Food Crops and
Livestock Service Office of West Lombok Regency, the tables presented in the following
subchapters explain the development of land area and production of several types of
24
productive food crops in West Lombok Regency, ranging from rice, secondary crops to
vegetables. Rice production in 2015 was 178 795 tons, corn was 26 771 tons, cassava was 4
062 tons, sweet potato was 1 455 tons, peanuts were 990 tons, soybeans were 2 941 tons,
green beans were 449 tons. As for vegetables, it is dominated by cayenne pepper 29 457 tons,
kale by 12 590, and eggplant by 12 076.
2. Plantation Sub Sector
In addition to the food crop agriculture subsector, the plantation sub-sector in West
Lombok Regency also contributes significantly to the economy of West Lombok Regency.
Coconut, coffee, cloves, cashew, vanilla, cotton, kapok, cocoa, tobacco, tamarind, areca nut,
are the types of plantation crops produced in West Lombok Regency. Coconut and cashew are
the leading plantation products. With good management, plantation products in West
Lombok Regency are expected to be able to compete with other regions. Changes that
occurred during 2010 can be seen in the following tables. The production for coconut was 14
769.03 tons and clove was 1 366.91 tons.
3. Forestry Sub Sector
Forests are the lungs of the earth and a source of water reserves. Forest sustainability is
the responsibility of every aspect of the community because the community also feels the
importance of forest sustainability. Not much can be explained about the state of forestry in
West Lombok Regency, but the production of several kinds of potential forestry products in
West Lombok Regency can be seen in this sub chapter. For the forestry sector, the dominance
of sengon is still at the top with a production of 10 784 tons.
4. Livestock Sub Sector
Animal husbandry is inseparable from agriculture so in line with its agricultural
production, West Lombok Regency also develops its livestock products. Some of the main
products are cattle, buffalo, goats, sheep, horses, chickens and pigs. Although it has not been
able to make a high enough contribution to the West Lombok economy, the potential that
xists in the livestock sector needs to be explored and developed.
5. Fisheries Sub-Sector
As an area directly adjacent to the ocean, West Lombok Regency is quite rich in marine
fisheries products. However, until now there are still many fishermen who catch fish using
traditional methods so that from year to year the production of marine fisheries in West
Lombok Regency does not experience a significant increase. In addition to marine fish,
inland fisheries cultivation is also encouraged and is expected to increase community income.
25
Mangosteen Agribusiness
The agribusiness system is a totality or unity of performance consisting of upstream
agribusiness subsystems, farming subsystems, downstream agribusiness subsystems
(processing), marketing subsystems, and service and support subsystems.
Upstream Agribusiness Subsystem
Mangosteen is one of the leading commodities in West Lombok Regency whose
production often fluctuates. Many factors cause fluctuations in mangosteen in West Lombok
Regency. These fluctuations are generally due to crop failure. Mangosteen farmers in West
Lombok Regency generally use self-generated seeds. However, the majority of mangosteen
trees in West Lombok Regency are mangosteen trees inherited from ancestors from the royal
period so it is not surprising that some mangosteen plantations have tree ages above 100
years. The planting pattern of mangosteen trees is also carried out sporadically without
considering the planting distance issued by the West Lombok Regency Agriculture Office.
This is due to the different perspectives of farmers. Farmers prioritize maximum land use
patterns while planting patterns from the West Lombok Regency Agriculture Office consider
various factors so that mangosteen planting can be carried out optimally. Some of the factors
taken into consideration include disease susceptibility and long-term productivity.
Mangosteen production in West Lombok Regency is the highest when compared to districts
and cities in the West Nusa Tengara region. In addition to weather factors that result in crop
failure, non-standardized cropping patterns, and land conversion are also one of the things
that cause fluctuations in mangosteen production. Mangosteen productivity in Indonesia is
also low compared to mangosteen productivity in Thailand. This can be caused by the lack of
application of location-specific technology, the use of superior seeds, and various supporting
treatments.
Farming Subsystem
Cost analysis on mangosteen farming is divided into two, namely variable costs and
fixed costs. Variable costs are fertilizer costs and labor costs. While those classified into the
type of fixed costs in mangosteen farming include the cost of land tax, the cost of
depreciation of agricultural equipment, and the cost of seeds. Variable costs and fixed costs
charged to farmers are cash and some are non-cash (imputed). The division of the types of
cash and imputed costs is considered important because of the analysis of income that the
26
farmer has to pay the means of production. The price used in the analysis of farming costs is
the average cost of each respondent. The success of mangosteen farming activities can be
seen from the income earned by farmers, which is the difference between revenue and
production costs. Based on the results of research by Kusmayadi (2017) on the financial
feasibility of mangosteen farming with a sample of mangosteen farmers in Cibanten, Cijulang
District, Pangandaran Regency, the NPV value of Rp 10 383 611 was obtained, meaning that
the respondent obtained a profit at an interest rate of 9% of Rp 10 383 611. According to
Husnan and Muhammad (2008), a project is said to be feasible if its NPV value is more than
0. The Net B/C value of 1.13 means that every 1.00 capital invested in mangosteen farming
will benefit by 1.13. The IRR value obtained is 11%, meaning that the maximum bank
interest rate that can be paid by respondents is 11% harvest per year or greater than the
interest rate of 9%. According to Husnan and Muhammad (2008) a project is said to be
feasible if the IRR value is more than bank interest. Based on NPV indicators, Net B/C and
IRR values, it can be concluded that mangosteen farming has business feasibility from a
financial aspect.
Downstream Agribusiness Subsystem
In West Lombok District, mangosteens generally do not undergo post-harvest treatment
or processing. Mangosteen farmers sell mangosteen to buyers. This sales process can be done
by direct sale of the entire product with a count of land, number of trees, or eventually
purchased in kilogram quantities. Purchases in kilogram quantities at the farm level are
valued at a price in the range of IDR 4 000. The age of the tree and the condition of the tree
also play an important role in the high and low price paid by the contractor.
Mangosteen fruit can be processed into a variety of products with high added value
(Table 5). However, until now there is no mangosteen processing industry in West Lombok
Regency in the form of household-scale industries or large industries.
Mangosteen processing in West Lombok is still a seasonal industry that depends on
local government demand. This is certainly unfortunate considering that without processing,
the mangosteen fruit that will be utilized properly is only the fruit meat. Whereas the fruit
skin can be used for a variety of products. This is as the industrial tree presented by Utami
(2008) as shown in Figure 4.
Marketing Subsystem
Product marketing is a benchmark for the level of revenue from farming activities
27
carried out (Zamasiya et al. 2014). In the marketing subsystem, the position or bargaining
position of farmers is still weak. The thing that causes the weak bargaining position of
farmers is the compulsion of farmers to immediately sell their products, due to limited shelf
time and product storage facilities. This is as emphasized by
During the harvest season, mangosteen farmers in West Lombok Regency generally
sell their mangosteens to middlemen. Middlemen come directly to the farmers. The price
received by farmers for 1 kg of mangosteen is Rp 4 000/kg. Sometimes the purchase of
mangosteen is even done before the harvest. According to Kohl and Uhl (2002), there are
three marketing functions: exchange function, physical function and facility function. In this
case, the middlemen perform a physical function consisting of transportation and storage
functions. Middlemen transport the mangosteen directly from the farmer's garden, then store
and distribute it to traders and exporters. If we look more closely, these functions can be
taken over or performed at the farmer group level.
Services and Support Subsystem
Farmer groups as a forum for organization and cooperation between members have a
very important role in the life of the farming community, because all activities and problems
in farming are carried out by farmer groups together. The existence of farmer groups, farmers
can jointly solve problems that include the fulfillment of agricultural production facilities,
technical production, and marketing results. Seeing the very important role of farmer groups,
it is necessary to further foster and empower farmer groups in West Lombok Regency so that
they can develop optimally. The role of farmer groups is currently limited to providing
information on activities from the local government to farmers and providing mangosteen
seeds. Institutionalization in the form of farmer groups also supports the increase in income
earned by farmers. This is also reinforced by research conducted by Hubies and Najib (2008),
showing that the R/C value obtained in mangosteen farmer groups with general institutions
has a value of R/C.
5.2. The R/C value of 5.2 indicates that it is institutionally sound to continue with this
commodity.
In addition to the role of farmer groups, the role of the government is also needed in
the lives of farming communities in the fulfillment of agricultural production facilities. The
role of the government in increasing mangosteen production in West Lombok Regency is by
providing seed assistance to farmers who will expand the area. The government also
28
contributes mangosteen processing skills and Standard Operating Procedures (SOP) for
mangosteen planting. The government also began to include mangosteen as one of the
leading regional commodities with the jargon MADURA (Mangosteen, Durian, and
Rambutan). In addition, the government also assisted in labeling mangosteen products,
namely the Lingsar Mangosteen labeling.
Industry Foresight for Mangosteen Agribusiness in West Lombok Regency
Industry foresight of mangosteen agribusiness was obtained from in-depth interviews
with stakeholders. In general, views regarding the development of mangosteen agribusiness
in West Lombok Regency are positive. This is also based on the uniqueness of mangosteen
fruit that cannot be cultivated in any place and stability of selling prices. In general, the
Industry foresight of mangosteen agribusiness is as follows: The ideal mangosteen
commodity to be sold in West Lombok in the form of fresh fruit in the future is grade A
mangosteen. This is considering the high growth of foreign tourists as one of the exclusive
consumers of mangosteen fruit grade. Therefore, the percentage of grade A mangosteen fruit
must be increased for each tree. The increase in the percentage of grade A is also to meet the
increasing demand of foreign markets, this is supported by the increase in mangosteen
exports every year. This grade A mangosteen fruit can be produced by standardizing the
mangosteen planting pattern.
For the next five years, the growth of the domestic market will continue to increase,
supported by various infrastructure facilities and government programs in the field of
tourism, as well as the export market. Therefore, fluctuations in mangosteen production in
West Lombok district must always be minimized, especially crop failure. However, in the
future it is necessary to process mangosteen fruit. This is to meet the market in the form of
consumers who like processed fruit products, as well as to increase the added value and
utilization of mangosteen fruit components. As we know, when sold in the form of fresh fruit,
only the pulp will be consumed. Whereas if reviewed, both in terms of benefits and
percentages, the skin of mangosteen fruit has the highest value. This becomes the basis for
mangosteen processing to be important in order to utilize mangosteen fruit more thoroughly.
Utilization of all components of mangosteen fruit will support zero waste for
mangosteen agribusiness. The existence of processed mangosteen products will also further
expand the mangosteen fruit industry tree. As we know, currently trade between regions and
29
between countries is getting easier along with the development of information and
communication technology and distribution facilities and infrastructure. This is an
opportunity to fulfill various industrial needs in various regions or other countries. If we liken
it to a country that used to be a ship in its own ocean, now each country is like a ship in the
same ocean. We can look at each other. We can see the potential and needs of other countries,
so that export opportunities for mangosteen processed products will clearly be wider open.
The development of the world of pharmacy and cosmetics, especially in the utilization of
antioxidants and xanthones contained in mangosteen fruit, has also begun to progress. This is
shown by the increasing variety of health and beauty products made from mangosteen. This
potential can be seen as a future need that inevitably must be immediately provided with a
supply of raw materials, both in the form of mangosteen fruit that has been floured, in the
form of chips and so on. This will certainly be a major opportunity, considering that
mangosteen cannot grow in any region or country. So for developed countries that cannot
produce mangosteen fruit but need it for industry, it can become the main market for
processed mangosteen fruit products.
Mangosteen in West Lombok Regency
The first stage in strategy formulation is to identify the factors of strengths,
weaknesses, opportunities, and threats. Based on the results of the analysis of the mangosteen
agribusiness system in West Lombok Regency, the strengths, weaknesses, opportunities, and
threats in the development of mangosteen agribusiness in West Lombok Regency can be
summarized.
Power
Some of the strengths in the development of mangosteen agribusiness in West
Lombok Regency are:
1. Grade A mangosteen fruit.
Mangosteen has several classifications for its quality. The highest quality is Grade A
mangosteen. In addition to Grade A, there are Grade B and C qualities. This is as presented
in Figure 5.
Mangosteen is generally sold in the form of fresh fruit. This is because of its high value.
The price of Grade A mangosteen fruit ranges from 3 to 5 times that of mangosteen fruit in
general. For this Grade A mangosteen fruit, processing is not recommended, but only post-
30
harvest handling. Mangosteen trees in West Lombok can produce mangosteen fruit with this
grade. This is certainly a strength for farmers, where if farmers can do self-sorting of this
quality mangosteen fruit, the selling value produced by mangosteen farmers will increase.
However, this potential is actually utilized by middlemen.
2. Product labeling or branding.
Mangosteen products in West Lombok Regency already have branding Lingsar mangosteen
label. The existence of this label provides an opportunity in expanding the marketing of these
commodities to large traders and modern markets. Patent rights in the form of the Lingsar
Mangosteen label, because the largest mangosteen production center in West Lombok
Regency is in Lingsar District. The mangosteen produced by farmers in Lingsar sub-district
in the last three years has successfully penetrated international markets, such as Taiwan and
Singapore, through exporters in Bali.
3. Pilot post-harvest processing industry
Mangosteen processing, mangosteen processing in West Lombok Regency can already
be done. Mangosteen processing is carried out to produce new products in the form of
mangosteen dodol, mangosteen juice drinks and sweets. The ability to process mangosteen
fruit has been obtained by mangosteen farmers through training conducted by the industry
and trade office. However, it has not yet been applied to the household industry scale.
Mangosteen processing is usually done when there are certain activities and or requests from
related agencies for exhibitions. The ability to process mangosteen fruit at the farm level is a
strength in efforts to develop mangosteen agribusiness. Especially in the effort to overcome
the shelf life of mangosteen and increase the added value of mangosteen fruit, especially
mangosteen fruit with Grade C.
Weaknesses
Some of the weaknesses in the development of mangosteen agribusiness in West
Lombok Regency are:
1. Production once a year
Mangosteen production, which is only harvested once a year, is one of the obstacles in
maintaining the availability of mangosteen fruit, especially for the processing industry.
Harvest failure will cause no mangosteen supply in the next one year. This is a weakness in
the effort to develop the mangosteen processing industry. This problem can be overcome if we
have high mangosteen productivity. Based on BPS data (2014), mangosteen production in
31
1997 amounted to 17 475 tons and increased to 114 755 tons in 2014 with the number of
productive plants reaching 1 429 459 trees. However, mangosteen production in Indonesia is
not yet optimal and can still be increased through increasing the productivity of the
mangosteen plant. The productivity of mangosteen plants in Indonesia in 2015 amounted to
75.51 kg/tree, while according to Setiawan et al. (2008), the productivity of mangosteen
plants in Malaysia, Thailand and India reached 200-300 kg of fruit per tree. This is due to the
cultivation of mangosteen plants in Indonesia which is still very traditional, without any
maintenance, and rarely fertilized (Astuti 2012).
2. Starts fruiting when the tree is 5 years old
Mangosteen fruit can only begin to bear fruit when the age of the tree has reached 5
years. This provides a long period of time for mangosteen farmers to start earning income
from mangosteen farming. This is an obstacle in the mangosteen development business, due
to the capital turnover that occurs in a long period of time.
3. Traditional cultivation process
Mangosteen cultivation in West Lombok is still traditional. This is because land
clearing is still done sporadically, which means that mangosteen farmers in West Lombok
Regency do not use the standard mangosteen planting standards or SOPs issued by the
Agriculture Office. For planting distance itself, farmers usually use estimates that are
considered the most efficient for the land. In fact, if studied carefully and for the long term,
the planting distance used by farmers is far from what should be done. This is because
farmers do not consider that close spacing will affect long-term productivity and disease
susceptibility.
Opportunities
Several things that become opportunities in the development of mangosteen
agribusiness in West Lombok Regency are:
1. Mangosteen fruit as one of the region's leading products
Mangosteen is one of the three leading products of the industry and trade office. This is
an opportunity that must be captured with the alignment of the relevant agencies. So that the
process of popularizing mangosteen can be helped by local government programs.
2. Growing tourism industry
A total of more than 3.7 million tourists visited NTB in 2017. This significant number
32
of tourists is certainly an opportunity in an effort to introduce mangosteen fruit to foreign
countries, by making it a table dish in every hotel. The existence of domestic and
international tourists is also a market that can be targeted for mangosteen sales. The number
of tourists in NTB as shown in Figure 6.
3. Mangosteen fruit as an export commodity
Currently, Indonesia has been able to export mangosteen to 23 countries. This is an
opportunity that must be captured in efforts to develop the mangosteen industry in West
Lombok. The opening of this export market must be used as a basis for farmers to start
organizing their production procedures to obtain export quality mangosteen fruit.
4. Area Development
One of the programs that will be implemented by the agriculture office is the
development of mangosteen planting areas. This is done to increase mangosteen production
in West Lombok Regency. This program is also supported by geographical conditions. There
is a percentage of 65% of the total area of West Lombok Regency that has the potential for
mangosteen area development. This area development program provides assistance to
farmers, especially in terms of seeds and planting process assistance by the West Lombok
Regency agriculture office.
CONCLUSIONS :
Internal and external factors that influence the development of mangosteen agribusiness
in West Lombok Regency, namely 1) Internal factors consist of strengths and weaknesses
while the strengths are sales in the form of fresh fruit without treatment, product labeling /
branding and processing and post-harvest industries. The weaknesses are production once a
year, the period of starting fruit above 5 years, the traditional cultivation process; 2) External
factors that influence development are opportunities and threats. Opportunities consist of
mangosteen fruit as one of the regional superior products, the development of the tourism
industry, mangosteen fruit as an export commodity, and the development of mangosteen
areas. The threats are land conversion and climate change and erratic weather.
