14
THE ROLE OF COOPERATIVES IN CLOVE AGRIBUSINESS IN
BULUKUMBA REGENCY
Introduction:
Cloves are one of the plantation commodities that have an important position in the
economy of the Indonesian people, especially clove farmers and the clove cigarette industry.
Indonesia is the world's largest producer and consumer of cloves, contributing 74 percent of
the world's total clove production, with an average production of 130,000 tons per year. The
second country is Madagascar, which contributes 13 percent with an average production of
23,000 tons per year. Meanwhile, Tanzania only contributes 5 percent with an average
production of 8,000 tons of cloves per year (FAO 2019). The percentage of clove producing
countries in the world can be seen in Figure 1.
One of the government's efforts in developing clove commodities is to increase
production to meet domestic needs, especially for the clove cigarette industry. National clove
production tends to fluctuate because cloves are an annual crop that is highly dependent on
climatic conditions, so clove production is known as the main harvest, medium harvest, and
small harvest. During the main harvest, clove production can reach 600 kg/ha, medium
harvest around 300 kg/ha, and small harvest around 100 kg/ha. The average productivity of
clove plants is estimated to reach 250-350 kg/ha (Pusdatin 2021). In general, the development
of Indonesia's clove production over the past five years has shown an increase. The lowest
clove production occurred in 2017 at 113,178 tons, while the highest clove production
occurred in 2021 at 140,997 tons. Indonesia's clove production from 2017 to 2021 can be
seen in Figure 2.
The high production of cloves in Indonesia is because cloves are native to Indonesia
which is then supported by natural conditions, climate, and topography so that clove
agribusiness has the potential to be developed. Clove plants in Indonesia are approximately
95 percent cultivated by the people in the form of smallholder plantations spread across
several provinces. While the remaining 5 percent is cultivated by private plantations and state
plantations. The provinces that produce cloves in Indonesia are South Sulawesi, North
Sulawesi, Central Sulawesi, Southeast Sulawesi, East Java, Central Java, West Java and
Maluku.
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The clove agribusiness in Indonesia has considerable potential to be developed, because
in addition to being used as raw material for cigarettes, clove flowers, handles and leaves can
also be refined to produce clove oil containing eugenol. Indonesia's supply of clove oil to the
international market is quite large, which is more than 60 percent of the world's needs. Clove
oil distillation has been widely developed in clove production centers, both in the form of
industries and small businesses that still use simple tools. In fact, during the dry season and
clove prices improve, farmers do not distill clove flowers, but instead distill fallen clove
leaves. The yield of clove leaf oil that can be achieved in folk distillation is 1 to 2 percent. In
addition, cloves are also widely used in the food, pharmaceutical and vegetable pesticide
processing industries.
Optimizing agribusiness development cannot be separated from the role of farmer
institutions. Institutions in agribusiness including the supporting services subsystem must be
able to play a role in supporting the activities of the subsystems of procurement of production
facilities, farming, processing of agricultural products, and marketing. Agribusiness will run
well if there is no gap between supporting institutions and their business activities. So, to
move and advance agribusiness, all institutions must play an active role in synergy and
coordination so that there is no overlap of interests and efficiency can be achieved (Saragih
2010).
The importance of farmer institutions is recognized in agricultural development, both in
industrialized and developing countries such as Indonesia. However, reality shows the
tendency of weak farmer institutions in developing countries and the magnitude of obstacles
in growing institutions in the community. The existence of farmer institutions is expected to
be able to help farmers get out of the problem of economic inequality, but until now it is still
not functioning optimally. This can be seen from the condition of farmers in rural areas who
are still shackled with various problems ranging from the distribution and provision of
agricultural inputs, cultivation, post-harvest, processing to marketing (Anantanyu 2011).
One of the farmer institutions that play a role in clove agribusiness is the cooperative.
Cooperatives have long been a strategic business entity in improving the economy of its
members and society in general. According to Sukidjo (2008), many cooperatives have been
successful in Indonesia and have become large, reliable companies. However, there are still
many cooperatives whose performance is not in accordance with what is expected, causing
trauma and a negative image of the cooperative. Some of the contributing factors include: 1)
the inability of cooperatives to carry out the promised functions,
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2) there are deviations in business activities that are not in accordance with the interests of
members, 3) the quality of human resources is low, 4) supervisors are not working optimally,
and 5) administrators/managers are not honest in carrying out their duties.
Problem Formulation
One of the problems in managing agricultural resources is the problem of unsupportive
agricultural institutions, one of which is farmer institutions. For this reason, it is necessary to
develop farmer institutions based on the idea that: (a) the agricultural process requires strong
human resources supported by infrastructure, equipment, credit, and so on;
(b) farmer institutional development is more complicated than natural resource management
because it requires supporting factors and production units; (c) agricultural activities include
three sequences: preparing inputs, transforming inputs into products with labor and
management efforts, and putting outputs into value; (d) agricultural activities require support
in the form of policies and institutions from central to local; and (e) the complexity of
agriculture, which includes business units and institutions, is difficult to achieve optimal
conditions (Anantanyu 2011).
Farmer institutions determine the success of agricultural development given the focus
of Indonesia's current agricultural development on agribusiness systems. Collective action by
farmers in an institution is believed by Mosher (1991) to be a facilitating factor for
agricultural development. Farmers' collective action participation can increase farmers'
income, add new skills, reduce transaction costs, increase market access and expand
cooperation networks. The role of institutions on farm income can show that active
institutions tend to have a better role in increasing the income of its members than the role of
passive institutions.
Bulukumba Regency is one of the economic centers in the southern region of South
Sulawesi Province and there are around 286 active cooperative units spread across various
sub-districts with different business sectors, ranging from agriculture, forestry, fisheries,
savings and loans, and insurance. The number of cooperatives in Bulukumba Regency
continues to grow every year. This can be seen from the year that cooperatives were formed
in the district. The first cooperative in Bulukumba was formed in 1967 and the last
cooperative was formed in 2020. This proves that cooperatives in Bulukumba still exist and
survive until now. The number of active cooperatives in Bulukumba Regency can be seen in
Figure 3.
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The plantation sector is one of the strategic superior potentials that contributes greatly
to the economy of Bulukumba Regency, South Sulawesi Province. This is supported by
extensive land resources, suitable climate and great genetic diversity of biological resources.
The plantation crops that include superior commodities, namely: coconut and hybrid, robusta
and arabica coffee, cocoa, cloves, cashew, rubber, cotton, and pepper. Cloves are the fourth
leading commodity after coconut, cocoa, and coffee. Data on the development of clove
production in Bulukumba Regency in the last five years can be seen in Figure 4.
The development of clove production in Bulukumba Regency in recent years tended to
be stable from 2013 to 2016. However, in 2017 clove production experienced a significant
decline from 730 tons in 2016 to 367 tons. This was due to high rainfall which caused clove
trees to fail to flower, resulting in crop failure. In 2017, the production of several spice
commodities fell due to high rainfall. The highest clove production occurred in 2015,
amounting to 738 tons with an area of 6,183 ha and an average productivity of 257 kg/ha.
The highest clove producing areas in Bulukumba Regency are Kindang Sub-district,
Gantarang Sub-district and Bulukumpa Sub-district. Cloves began to be cultivated in
Bulukumba Regency in 1972. Clove plants in this district are classified into four types,
namely Si Putih, Si Kotok, Zanzibar and Ambon.
One o f th e problems faced by clove farmers in Bulukumba Regency is the unstable
price of cloves, where prices tend to be determined by certain parties, one of which is
intermediary traders and ijon. Collecting traders have a stronger bargaining position than
farmers, so they tend to determine the price of cloves much lower than the market price. In
principle, the bargaining process is normal, but in certain commodities and regions, the
b a r ga i n i n g process is often unbalanced (only benefiting one party and harming the
other). The party that is often disadvantaged is the farmer, and often the selling price is set
too far from the market price so that it is unable to cover the production costs incurred by the
farmer. This is also the case in the clove agribusiness, where intermediary traders tend to
determine prices, even known as t h e ijon system where the price of cloves is estimated
and determined in advance before harvest without considering market prices. T he r e f o r e ,
an institution is needed that can assist farmers in maintaining clove price stability. According
to Susilo (2013), cooperatives are the right institution to answer this question economic
problems in Indonesia, especially the rural economy, given that cooperatives are
characterized as associations (associations of people), business entities, and as a movement
(to fight economic oppression and the injustice of the market system).
Cooperatives play an important role in the history of clove agribusiness in Indonesia.
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An important historical point is related to the unstable prices in the 1990s. At that time, the
government implemented a regulation that required farmers to sell their cloves only to
Village Unit Cooperatives (KUD) through the Clove Marketing and Support Agency (BPPC).
BPPC itself was established by the government as an effort to stabilize clove prices in the
early 1990s (1992-1994), as clove prices fell very low for a long time due to uncontrolled
development programs. Therefore, to maintain price stabilization and protect clove farmers,
cooperatives as people's economic institutions need to be developed and enhanced in the
clove agribusiness.
1.1 Clove Agribusiness:
Agribusiness is a system consisting of several subsystems, from procurement of
production facilities to marketing of processed products. The types of businesses in
agribusiness are also very diverse and vary in size. From this condition, many institutions are
involved to handle it. Institutional support is needed and the progress of agribusiness is
greatly influenced by the participation of supporting institutions. The results of
Wahyuningsih's research (2007) show that to mobilize and advance agribusiness all
institutions must play an active role in synergy and coordination so that there is no overlap of
interests and efficiency can be achieved. Agribusiness actors can be grouped into three,
namely SOEs, the private sector, and cooperatives. Meanwhile, the results of research by
Nuryaman (2018) using the Importance Performance Analysis (IPA) data analysis method
show that farmers are satisfied with the performance of institutions that are quite good in
carrying out their functions as agribusiness institutions. The priority for improving the
function and role of institutions lies in the existence of cooperatives, purchase requirements,
selling prices, farmer groups as production units and providers of production facilities, and
training conducted by information and technology institutions.
Rumondor (1993) analyzed t h e development of clove trading in North Sulawesi. The
results of this study indicate that the lack of success of government policy in the
implementation of the clove trading system in North Sulawesi so far has been caused by the
lack of discipline of the trade implementers in carrying out the stipulated regulations and the
exclusion of the Clove Cigarette Factory (PRK) in the implementation of clove trading.
Meanwhile, Simatupang (2003) examined policy options for restoring the drop in clove
prices. The results show that policy options that can be chosen to encourage the price of
cloves at the farm level are: 1) setting the purchase price at the clove farmer level with the
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support of funds and bailouts from the government; 2) setting tariffs and liberalizing clove
imports; 3) asking the cigarette factory association to set a minimum clove purchase price at
the farmer level; and 4) forming a community forum or tripartite strategic partnership
Farmers - GAPPRI - Government (National Clove Council). Meanwhile, the results of
research by Wachjutomo (1996) show that the government needs to carry out a policy of
increasing the basic price of cloves to increase the income of farmers.
Duakaju (2004) examined price behavior in clove marketing in Indonesia. Based on the
results of the analysis of the equilibrium price of cloves using time path analysis and
simultaneous equations, it shows that the fluctuations in the p r i c e of cloves in the producer
market tend to lead to the equilibrium price (convergent cycle) and the trading system has a
significant effect on the equilibrium price of cloves at the producer level, where in the post-
Clove Marketing and Support Agency (BPPC) the equilibrium price is higher than the trading
before and by BPPC.
Siregar (2011) conducted research on the analysis of price disparities and the potential
for unfair competition in clove distribution. The results of this study indicate that the price
disparity of cloves in a certain period of time is quite high, so that it can affect the production
costs of clove cigarette factories and provide uncertainty for farmers in cultivating clove
plants. High price differences occur in the clove distribution system from farmers to
intermediary traders. Each of these distribution points has the potential to engage in
monopolistic practices such as monopsony and predatory pricing.
Lolowang et al. (2016) conducted research on the profit analysis of clove farming. The
results showed that the results of calculations using the profit analysis method (R / C) proved
that clove farming was profitable as seen from the average value of R / C per farmer was 1.80
and the results of the Break Event Point (BEP) calculation showed that clove farmers made a
profit.
Wahyudi (2016) conducted research on the stabilization strategy of the national clove
market performance. The results of this study indicate that the clove market situation shows a
near balance of cigarette industry demand with national production in the long term. The
strategy that can be done is to encourage plant productivity through intensification and
rehabilitation programs for clove plants. Natural area expansion will occur if the balance
between demand and supply is maintained. Short-term price fluctuations due to annual
production fluctuations are handled through supply chain management. Technical,
institutional and financial policies are needed by facilitating farmers' access to bank financing
such as harvest and post-harvest financing and the implementation of a warehouse receipt
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system to provide alternatives to farmers when prices fall.
Agustrai (2018) analyzed the concentration of market control and price relations
between farmers and clove traders in Bulukumba Regency. The results of this study indicate
that the market structure of clove commodities in Bulukumba Regency belongs to the
imperfect competition market structure. The concentration of market control of clove
commodities in Bulukumba Regency is classified as oligopsony with a loose concentration
level with a CR4 value of 0.48. The price relationship between farmers and intermediary
traders is very close with a value of 0.967. The elasticity of price changes at the intermediary
level is greater than price changes at the farm level. This is indicated by a transmission
elasticity value of 0.935 where this value is < 1.
1.2 Farmer Institutions
Sadikin et al. (1999) conducted research on the study of agribusiness institutions in
supporting the development of agroecosystem-based agricultural business systems. The
results showed that the presence and dynamics of farmer groups in an area play an important
role in ensuring the success of a program. Active groups that provide better performance will
ensure the success of a program compared to groups with poor performance. Institutions that
are able to grow and develop are local commercial institutions that serve multiple functions.
These local institutions do not clearly lead to agribusiness institutions that provide buying
and selling services, threshing and milling services, and transportation services. In other
words, institutions that are able to develop according to local conditions are flexible
multifunctional institutions.
Zakaria (2008) examined the institutional strengthening of farmer groups as the key to
farmers' welfare. The results of this study indicate that building global competitiveness in the
Millennium III era is a serious effort that must begin with building local competitiveness as
early as possible for the welfare of farmers. The effort is through the empowerment of
people's economic organizations (farmers) that are carried out seriously, consistently and
continuously in three phases ranging from institutional empowerment, development of
business partnership networks to the phase of increasing competitiveness.
Anantanyu (2011) conducted research on farmer institutions, their role and capacity
development strategies. The results showed that the existence of farmer institutions for
farmers has become a necessity to improve their standard of living, dignity and respect.
Farmer institutions must be placed as a means to realize the hopes, desires, and fulfillment of
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farmers' needs. Effective farmer institutions are expected to be able to make a real
contribution in increasing the independence and dignity of farmers.
Arimbawa (2013) examined the role of agribusiness institutions in cocoa farming. The
results showed that agribusiness institutions that support cocoa farming are farmer
institutions (farmer groups); extension institutions; financing institutions (cooperatives and
banks); and marketing institutions consisting of middlemen, collectors and production input
kiosks. Farmer groups, extension workers and financing institutions play a lesser role
perceived by farmers, while marketing institutions are perceived to play a very good role by
farmers in cocoa farming. Meanwhile, Hasibuan et al. (2013) conducted research on
institutional models in the rubber agribusiness system. The results of this study indicate that
one form of effort that can be made to strengthen interactions between subsystems in the
rubber agribusiness system is with a partnership pattern so that the activities of each actor in
the rubber agribusiness system lead to "symbiotic mutualism", as contained in the agroestate
model and farmer cooperatives. In addition, the dynamics that occur in the institution must be
well organized so that each actor can play a role in accordance with their respective functions
so that institutional objectives in rubber agribusiness can be achieved effectively and
efficiently.
Several studies on the role of cooperatives have been conducted, both in Indonesia and
in other countries. The following are some studies on the role of cooperatives in agriculture.
Tambunan (2002) examined the role of cooperatives and small businesses in rural industries
in East Java Province. The results showed that in general cooperatives have not shown a
maximum role so that cooperatives are expected to further enhance their role in encouraging
the development of small rural industries that are increasingly popular in rural areas of East
Java. This is in line with the results of research by Purwono et al. (2013) which states that the
performance of dairy production cooperatives is still not optimal so it is necessary to improve
the performance of cooperatives.
XiangyuGuo (2010) examined the function of agricultural cooperatives in food security
in China. The results showed that the government and enterprises in China need to pay
attention to food safety in the face of world technological development. Farmers should form
an agribusiness organization to undertake the responsibility of controlling food safety and
quality, namely agricultural cooperatives. Cooperatives are effective organizations in
agribusiness because they can assist the government in quality inspection and management of
agricultural products. Agricultural cooperatives in China have performed well in controlling
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and maintaining food safety, increasing farmers' income, and promoting market competition
power.
Suhartono (2011) conducted research on business-oriented cooperative development
strategies. The results showed that the strategy or excellent program developed as the
spearhead to accelerate the development of cooperatives was carried out through the
development of business partnerships and through entrepreneurship development programs.
These programs certainly require broad participation from all levels of society including
entrepreneurs and the world of education.
Susilawetty (2013) conducted research on the role of Mutiara Mandiri all-round
cooperatives to improve the economy of the Gunung Sindur community, Bogor Regency. The
results of this study indicate that the Mutiara Mandiri all-round cooperative has a very
significant role in improving the welfare of the Gunung Sindur Bogor community, especially
with regard to the economy of the community as members of the cooperative. However, there
are several inhibiting factors faced, among others: (1) internal factors, namely (a) lack of
understanding or ignorance of the meaning of cooperatives; (b) lack of concern about
cooperative behavior; and (c) there are still many members who think that the management of
the cooperative has been entrusted to the management; and (2) external factors, namely
limited cooperative capital because obtaining loans requires collateral, while this cooperative
does not have fixed assets.
Susilo (2013) examined the role of agribusiness cooperatives in food security in
Indonesia. The results revealed that cooperatives are the most suitable business establishment
for agribusiness communities, especially in rural areas, which have characteristics according
to the cooperative spirit, namely mutual cooperation, mutual assistance, high solidarity and
helping spirit. In the past, agribusiness cooperatives, especially Village Unit Cooperatives
(KUD), have empirically been able to maintain food stability to achieve food self-sufficiency.
This is due to the consistent support of all parties, especially the government. However After
reformasi, with the change in regulations cooperatives were not given a significant role in
maintaining food stability, which resulted in high fluctuations in staple food prices.
Widjajani et al. (2014) conducted research on building member-based agricultural
cooperatives in the era of globalization. The results showed that agricultural cooperatives are
the most numerous cooperatives in Indonesia, but the contribution to national income is the
lowest. Agricultural cooperatives are losing their identity due to the ongoing impact of
globalization. In such conditions, there is a need for macro policies that are conducive to the
development of agricultural cooperatives in Indonesia, a full understanding of the conditions
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of cooperatives in Indonesia, the need for strategic steps to improve the internal conditions of
cooperatives, and the need for communication networks and cooperation with related parties.
Yusuf et al. (2014) examined the role of cooperatives as providers of fishermen's needs
in Barru Regency. The results showed that the Budi Bahari fishermen's cooperative was very
instrumental in fulfilling the needs of fishermen, namely as a provider of capital, fulfillment
of equipment, and meeting daily needs. The role of cooperatives as capital providers, in this
case fishermen (cooperative members) are greatly helped, especially when members need
money to open a business. About 80 percent of cooperatives act as providers of needs. The
cooperative's role as an equipment provider, in this case the cooperative provides fishermen
equipment only when members request it. About 65 percent of cooperatives play a role in
providing equipment. Meanwhile, the cooperative's role as a provider of daily needs plays a
role of about 95 percent. Devanty et al. (2017) conducted research on the role of w o m e n 's
cooperatives in efforts to empower women in farmer women's cooperatives in Blahbatuh
District, Gianyar Regency. The results of this study indicate that the role of women's
cooperatives in efforts to empower women, especially for independent cooperatives, has been
going well, but for cooperatives located in village offices, it still needs to be improved, the
standard of living of members of women's cooperatives is classified as prosperous, and the
potential of women's cooperatives in the future has a good opportunity greater than the threats
that will arise.
Abate (2018) conducted an analysis of the drivers of agricultural cooperative formation
and protection of farmers' membership decisions in Ethiopia. The analysis showed that in
Ethiopia, cooperatives are major players in agriculture from input supply, distribution, to
output marketing. Over the past decade, agricultural cooperatives have been promoted as a
policy instrument to achieve agricultural development. Through collective action,
cooperatives are expected to increase farmers' value addition, participation, and bargaining
position in agricultural markets. Thus, agricultural cooperatives play an important role in
input supply and output handling. Meanwhile, Koguashvili's (2016) research shows that
cooperatives are multi-dimensional associations that can create macro- and microeconomic
capacity in Georgia. Its success rate can be seen from the ever-improving economic and
social environment. Cooperatives contribute to macroeconomic stabilization, market balance,
fiscal and monetary stability, infrastructure, job creation, introduction of protected
agroecology, and innovative technologies.
According to Kotler (2007), Importance Performance Analysis or performance
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importance analysis is used to rank the various elements of a collection of services and
identify the necessary actions. Importance Performance Analysis (IPA) is usually used in
measuring the level of service satisfaction. In this method, it is necessary to measure the level
of conformity to find out how much the customer is satisfied with the performance of the
service provider, and conversely how much the service provider understands what the
customer wants for the services they provide. As research conducted by Nuryaman (2018) on
the role of agricultural institutions in the development of mendong agribusiness using the
Importance Performance Analysis (IPA) method to measure institutional performance related
to the importance of what farmers expect from institutions that support their businesses and
the performance that has been carried out by these institutions that have been felt by farmers.
Wiandhani et al. (2016) analyzed the economic and non-economic benefits of the ISM
Mitra Karya Bahari Fisheries Cooperative using Importance Performance Analysis (IPA).
The results showed that the cooperative provides economic benefits in the form of cash
economic benefits and can be calculated. While the non-economic benefits of cooperatives in
the form of satisfaction felt by members in becoming members of the cooperative, towards
services in the Annual Member Meeting (RAT) and utilization of business units are as
expected, which is in the high category (satisfied), but satisfaction in mandatory savings
payments is in the low category (less satisfied). Meanwhile, Jalika et al. (2016) analyzed the
evaluation of the success of Koperasi Serba Usaha Peternak Motivation Do "a Ikhtiar
Tawakkal (KSUP MDIT) Lampung also using the Importance Performance Analysis method.
The results showed that the KSUP MDIT business entity was included in the quality
category. However, KSUP MDIT has not contributed maximally to national development.
This is indicated by the indicator of cooperative compliance in paying taxes and also the
growth of KSUP MDIT's employment which is in the unfavorable category, while in the
employee wage rate ratio indicator, KSUP MDIT is categorized as quite good.
3.1 THEORETICAL FRAMEWORK
3.1.1 Agribusiness
Agribusiness is a term that has only been recognized since the early 1970s in Indonesia.
Agribusiness is an agricultural-oriented economic activity that includes all activities ranging
from the procurement and distribution of production facilities to the trading activities of
agricultural products produced by farms. Agribusiness has two main concepts, namely first,
agribusiness as a coordinative or integrative system consisting of several subsystems, second
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agribusiness as a business. As a system, agribusiness consists of: (a) agricultural production
facilities procurement subsystem, (b) farming subsystem (on farm), (c) agricultural product
processing subsystem (off farm or agroindustry), (d) marketing subsystem, and (e) supporting
facilities and infrastructure subsystem, institutional, political and environmental. As a
business, agribusiness means any commercial endeavor related to agricultural production
activities, whether it is the exploitation of agricultural inputs or the exploitation of agriculture
itself or the processing of agricultural outputs (Zakaria 2002).
According to Saragih (2010), agribusiness is a new concept and paradigm in viewing
agriculture. This means that agriculture is not only on-farm activities, but also off-farm
activities. Thus, agriculture is not only production-oriented, but also market-oriented, not
only seen from the demand side but also from the supply side. In this case, agriculture is not
only a matter of farming, raising livestock, fishing, and gardening, but also how to process
and market the output, as well as how to involve supporting facilities and infrastructure.
3.1.2 Farmer Institutions
Farmer institutions are institutions that are developed from, by, and for farmers, which
are formed on the basis of common interests, similarity of social, economic, and resource
environmental conditions, similarity of commodities and familiarity to improve and also
develop business members called farmer groups (poktan), combined farmer groups
(gapoktan), cooperatives, and other farmer institutions. Farmer institutions referred to here
are farmer institutions located in the region/locality (local institution), which is in the form of
membership organizations (membership organization) or cooperation (cooperatives), namely
farmers who are members of a cooperative group (Uphoff 1986). This institution includes a
broad sense, which in addition to covering the notion of farmer organizations, as well as the
"rules of the game" (rule of the game) or rules of behavior that determine patterns of action
and social relations, including social unity - social unity which is a concrete form of the
institution.
Farmer institutions are formed basically have several roles, namely: (a)
interorganizational tasks to mediate between the community and the state, ( b) resource tasks
including mobilization of local resources (labor, capital, materials, and information) and their
management in achieving community goals, (c) service tasks may include requests for
services that describe development goals or coordination of local community requests, and
(d) extra-organizational tasks require local requests for bureaucracy or organizations outside
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the community to intervene by outside agents (Esman and Uphoff in Garkovich 1989).
According to (Cahyono et al. 2013), the role of farmer institutions in supporting agricultural
sustainability is needed to provide input and consideration for development actors in the
context of local economic development. While Pretty et al. (2013), stated that the role of
institutions (both formal and informal) in assisting the promotion and adoption of sustainable
agricultural practices cannot be taken lightly. The dissemination of the adoption of
sustainable agricultural innovations requires increased awareness and understanding from
farmers about the potential benefits of sustainable agriculture.
In the life of farming communities, the position and function of farmer institutions are
part of the social institutions that facilitate social interaction or social interplay in a
community. Efforts to empower farmer institutions to increase attention and motivation for
farming will be more fruitful if they utilize the meaning and potential of three main keywords
in the context of institutions, namely norms, behavior, and social conditions and
relationships. Every decision taken will always be related to or limited by the norms and
social institutions of the farming community in the environment. Such conditions indicate
that the decision-making process in farming communities is a community-basic action that is
utilized as one of the entry points for technology dissemination efforts (Suradisastra 2008).
According to Esman (1986), farmer institutions are said to be effective if :
(a) farmer institutions are able to meet the needs of members; (b) farmer institutions can
utilize local resources (capital, materials, information, and labor) efficiently; (c) farmer
institutions are able to develop structures, leadership, norms; and (d) farmer institutions are
able to develop solidarity and cooperation networks.
3.1.3 Definition of Cooperative
The definition of Cooperative comes from English co-operation which means joint
effort. In other words, it means that all work done together can actually be called a
cooperative. However, what is meant by cooperative here is a form of regulation with a
specific purpose, a company established by certain people, to carry out certain activities.
The legal basis for the existence of cooperatives in Indonesia is Article 33 of the 1945
Constitution and Law No. 25 of 1992 concerning C o o p e r a t i v e s . According to
Article 1 of Law No. 25 of 1992, what is meant by cooperatives in Indonesia is "A business
entity consisting of individuals or cooperative legal entities by basing its activities on
cooperative principles as well as a people's economic movement based on family principles".
3.1.4 Foundation, Principles and Objectives of Cooperatives
The foundation of Indonesian cooperatives is a guide in determining the direction,
purpose, role and position of cooperatives against other economic actors in the Indonesian
economic system. In Law No. 25 of 1992 concerning the principles of c o o p e r a t i v e s ,
Indonesian cooperatives have a foundation, namely:
(a) Idiil Foundation, in accordance with Chapter II of Law No. 25 of 1992, the idiil
foundation of cooperatives in Indonesia is Pancasila; and (b) Structural Foundation, is the
1945 Constitution.
Based on Article 2 of Law No. 25 of 1992, it is stipulated that the principle of
cooperatives is kinship. Meanwhile, the purpose of cooperatives can be found in Article 3 of
Law No. 25 of 1992, which reads "Cooperatives aim to advance the welfare of members in
particular and society in general and participate in building the national economic order in
order to realize an advanced, just and prosperous society based on Pancasila and the 1945
Constitution".
Based on this article, the purpose of cooperatives in general includes three things,
namely:
1. Promote the welfare of its members.
2. Promote the welfare of society.
3. Participate in building the national economic order.
3.1.5 Principles of Indonesian Cooperatives
The preparation of Indonesian cooperative principles is inseparable from the history of
cooperative development internationally. In studying international cooperative principles, it is
realized that the preparation of cooperative principles in Indonesia must be in accordance
with the conditions and level of development of cooperatives in Indonesia. According to
Article 15 Paragraph 1 of Law No. 25 of 1992, cooperatives in Indonesia implement the
following principles:
1. Membership is voluntary and open.
2. Management is done democratically.
3. The distribution of the remaining results of operations (SHU) is carried out fairly in
proportion to the amount of business services of each member.
4. Limited distribution of returns to capital.
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5. Independence.
3.1.6 Grouping Cooperatives by Line of Business
Based on the field of business, the cooperative can be divided into :
1. A Consumer Cooperative is a cooperative that is engaged in the provision of consumer
goods needed by its members. The type of consumption served by a consumption
cooperative depends on the variety of members and the working area where the
cooperative is established.
2. Production Cooperatives are cooperatives whose main activity is to process raw materials
into finished or semi-finished goods. Its aim is to unite the capabilities and capital of its
members to improve certain goods through a process that equalizes management and
ownership.
3. Marketing Cooperatives are cooperatives formed to assist members in marketing the
goods or products they produce. The goal is to simplify the chain of commerce and reduce
as much as possible the involvement of intermediaries in marketing the products produced.
4. A Credit or Savings and Loan Cooperative is a cooperative that is engaged in collecting
savings from its members to be loaned back to its members who need capital assistance for
their business. In addition, savings and loan cooperatives also aim to educate their
members to be thrifty and love to save and prevent their members from being trapped by
loan sharks.
3.1.7 The Role of Cooperatives
Cooperatives are a form of cooperation, both between individuals and institutions to
overcome common problems with specific goals. The basic concept of cooperatives is the
joining of individuals who have the same goals with the intention of pursuing the same
activities. With this combination, cooperatives can get greater capital and joint efforts to
achieve economic efficiency. Cooperatives have certain characteristics in line with their
idealism. The characteristics of cooperatives can be seen in terms of their objectives which
are based on common interests. According to Munker (1972), cooperative idealism must be
brought to fruition in cooperative practices while adhering to cooperative ideas and
principles. In general, a cooperative must have its own business spirit, be able to help itself
(assistance is only temporary), democratic, economically efficient, voluntary, fair, open to its
members, and towards social welfare.
Cooperatives are one of the farmer institutions that aim to improve the welfare of the
community by basing its activities on cooperative principles as a people's economic
movement based on family principles. Cooperatives contain two elements, namely economic
elements and social elements that are related to each other. It is said to have an economic
element because the purpose of the cooperative itself is to achieve the welfare of members.
Meanwhile, the social element can be seen from the principle upheld in the cooperative,
namely the principle of kinship.
Ismangil (1985) argues that a cooperative can be considered as a system that in its
activities attracts inputs, processes inputs, and produces outputs. Processed inputs can consist
of various elements, as well as the outputs produced can consist of various kinds. Basically,
the development of a system is determined by the ability to carry out functions in the input-
output process. The higher the ability of the cooperative, the more likely it is to develop. An
important aspect is its ability to interact with its environment. This is an important aspect that
determines the development of the system in the cooperative. Thus, in its activities the
cooperative can act as a producer and also as a consumer.
According to Anon (1985), the existence of cooperatives for the community consists of
three levels, namely: 1) cooperatives are seen as institutions that carry out a particular
business activity, such as financial services, credit, or other business activities marketing of
agricultural products; 2) cooperatives have become an alternative to other business
institutions. The community has felt the benefits and role of cooperatives better than other
institutions; and 3) cooperatives have become organizations owned by their members. This
sense of belonging is the main factor that causes cooperatives to be able to survive in various
difficult conditions.
According to Law No. 25 of 1992 Article 4 explains that the role of cooperatives,
including: a) building and developing the potential and economic capacity of members in
particular and society in general to improve their economic and social welfare; b) actively
participating in efforts to improve the quality of human life and society; c) strengthening the
people's economy as the basis for the strength and resilience of the national economy with
cooperatives as its pillar; and
d) strive to realize and develop the national economy which is a joint venture based on
kinship and economic democracy.
To achieve optimization of organizational potential, there are four factors of
cooperative potential sources, namely: 1) membership, is the main source of potential for
cooperatives as an association of people. The factors inherent in membership make
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cooperatives strong, namely the economic potential of members and their level of
intelligence; 2) capital, is the most pressing problem for cooperatives. The weak economic
potential of members causes the principle of self-help to not get enough support for
optimization, so that capital formation is slow and services and investment are difficult to
develop; 3) business volume, is a measuring tool for cooperative business activities, which on
the one hand is determined by production and on the other hand by marketing. To optimally
develop production potential, cooperatives absolutely must be part of the
agribusiness/agroindustry system, so that the added value mostly/fully falls into the hands of
the cooperative itself; and 4) smooth and quality services are the main capital of cooperatives,
and that is where the level of cooperative relations with its members, stakeholders, and the
community can be read and known (Widjajani et al. 2014).
3.2 Operational Framework
Institutional forms in agribusiness include: a) farm input provider institutions; b) capital
provider institutions; c) labor fulfillment institutions; d) land and irrigation water provider
institutions; e) on-farm institutions, f) agricultural product processing institutions; g)
marketing institutions; and h) information provider institutions (technology, markets,
policies, and others).
As one of the institutions in agribusiness, cooperative development is directed at
increasing the real income of cooperative members as much as possible simultaneously and
interactively. Increasing the role of cooperatives in the agricultural sector is a top priority in
cooperative development, because the largest share of cooperative members is in the
agricultural sector and also in supporting sectors, including industry, trade, transportation and
other services.
Basically, clove agribusiness is very profitable. Especially with the opportunity to
develop downstream industries for food, pharmaceutical, and vegetable pesticide purposes,
including exports. Institutionalization in clove agribusiness plays a very important role in
efforts to develop clove agribusiness, especially in efforts to improve the standard of living of
clove farmers. There is a very close relationship between the activities that occur in all
subsystems in the clove agribusiness system, starting from the upstream, on-farm,
downstream, and services and support subsystems. The linkages between these subsystems
greatly affect the success of clove agribusiness development. In order for each of these
subsystems to run according to their respective functions and support each other and support
the role of each subsystem, the cooperative as one of the farmer institutions in rural areas can
be used as an alternative solution.
KUD Mattiro Bulu as a service and supporting institution is expected to participate in
clove agribusiness which includes upstream agribusiness in clove nurseries, procurement and
distribution of production facilities, as well as procurement and distribution of agricultural
tools and machinery. In the on-farm sector, cooperatives can play a role in replanting,
intensification, rehabilitation, and pest and disease control. Meanwhile, in downstream
agribusiness, cooperatives can play a role in marketing and processing (oil refining industry,
food and pharmaceutical industry, and vegetable pesticide processing). An overview of the
operational framework used in this study can be seen in Figure 5.
4.1 Data Processing and Analysis Methods
Data analysis used in this research is descriptive and quantitative analysis. Descriptive
analysis was used to describe the clove agribusiness in Bulukumba Regency. While
quantitative analysis is used to analyze the role of cooperatives in clove agribusiness in
Bulukumba Regency. The quantitative analysis uses the Importance and Performance
Analysis (IPA) method. This analysis method is basically used to measure a person's level of
satisfaction with the performance of other parties. A person's satisfaction is measured by
comparing his level of expectation with the performance of the other party. In this study,
what is meant is the level of satisfaction of clove farmers who are members of the
cooperative on the performance of the cooperative, where the cooperative acts as a service
provider (producer) and cooperative members as service users (consumers).
In the Importance Performance Analysis (IPA) method, mapping is carried out into four
quadrants for all variables that affect service quality. The quadrant division in Importance
Performance Analysis can be seen as follows.
The strategies that can be carried out with regard to the position of each variable in the
four quadrants can be explained as follows:
1. Quadrant I (Concentrate Here). This is an area that contains factors that are considered
important by customers, but in reality these factors are not in accordance with customer
expectations (the level of satisfaction obtained by customers is still low). The variables
included in this quadrant must be improved.
2. Quadrant II (Keep Up The Good Work). This is an area that contains factors that are
considered important by customers, and factors that are considered to be in accordance
with what is felt so that the level of satisfaction is relatively higher. The variables included
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in this quadrant must be maintained because all of these variables make the product or
service superior in the eyes of the customer.
3. Quadrant III (Low Priority). This is an area that contains factors that are considered less
important by customers, but in reality their performance is not too special. Service
improvements for variables included in this quadrant can be reconsidered because their
effect on the benefits felt by customers is very small.
4. Quadrant IV (Possible Overkill). This is an area that contains factors that customers
consider less important, but feel tend to be too excessive. Variables included in this
quadrant can be reduced so that service providers can save costs.
Importance Performance Analysis (IPA) is used to measure the level of importance and
performance level of an attribute. Data processing using the Importance Performance
Analysis (IPA) method is assisted by a Likert scale with a range of 1 to 5. Similar to the level
of importance, the level of performance and expectations also requires a scale and criteria in
assessing an attribute. Importance Performance Analysis (IPA) is compiled from the
tabulated results of the questionnaire and uses two variables, namely the level of performance
and the level of importance. The total assessment of the level of importance and performance
is obtained by summing the assessment scores given by respondents. A scale range is needed
to interpret how an attribute is rated overall by respondents based on the level of importance
and performance. Mapping was done on the average score between the importance and
performance levels. As the center line, the average score of all averages in the importance
level and performance level is sought. Geographical Location and Regional Administration
Bulukumba Regency is one of the regencies in the southern part of South Sulawesi
Province, which is about 153 km from the provincial capital. Bulukumba Regency is located
between 05º20´ - 05º40´ LS and 119º58´ - 120º28´ East. Bulukumba District borders Sinjai
District to the north, Bone Bay and Selayar Island to the east, Flores Sea to the south, and
Bantaeng District to the west.
The area of Bulukumba Regency is approximately 1,154.58 km² or about 2.5 percent of
the area of South Sulawesi, which includes 10 sub-districts and is divided into 27 sub-
districts and 109 villages. The most extensive sub-districts, namely Kecamatan Gantarang
and Bulukumpa, are 173.51 km² and 171.33 km² respectively or around 30 percent of the
district area. Meanwhile, the smallest sub-district is Kecamatan Ujung Bulu, which is the
district city center with an area of 14.44 km² or only about 1.25 percent of the district area.
The area of Bulukumba Regency based on sub-districts can be seen in Table 2.
Regionally, Bulukumba Regency is in a four-dimensional condition, namely the
highlands at the foot of Mount Bawakaraeng-Lompobattang, the lowlands, the coast, and the
open sea. Therefore, 6 sub-districts in Bulukumba Regency include coastal areas as centers
for tourism and fisheries development, namely: Ujung Bulu, Ujung Loe, Bonto Bahari, Bonto
Tiro, Kajang and Herlang. While the other 4 sub-districts as the center of agriculture and
plantation development, namely: Kindang, Gantarang, Rilau Ale and Bulukumpa.
5.1 Topography
The area of Bulukumba Regency is dominated by low to undulating topography. The
area of lowland to undulating and plateau is almost balanced, where the area of lowland to
undulating reaches around 50.28 percent, while the plateau reaches around 49.72 percent. The
shape of the area is flat, undulating, hilly and mountainous. 95.39 percent of Bulukumba
Regency is at an altitude of 0 to 1000 meters above sea level (masl) with a land slope of 0 to
40 degrees. The height of the Bulukumba Regency area above sea level can be seen in Table
3.
Based on the data in Table 3, it shows that Bulukumba Regency has areas with altitudes
varying from 0 masl to above 1000 masl. Most of the area is at an altitude of 0 to 500 m a s l ,
where there are 7 sub-districts that are coastal areas, namely Gantarang, Ujung Bulu, Ujung
Loe, Bonto Tiro, Bonto Bahari, Kajang and Herlang. Ujung Bulu sub-district has 100 percent
of its area at an altitude of 0 to 25 meters above sea level, while Kindang sub-district has an
altitude above 1000 meters above sea level with an area of around 34 percent of the sub-
district area. The topography is very supportive of Bulukumba Regency to be planted with
clove commodities in accordance with the opinion of Rukmana and Yudirachman (2016)
which explains that clove plants can grow at an altitude of 0 to 1000 masl, but the optimal
altitude for the growth and use of clove plants ranges from 200 to 600 masl.
Specifically, topographical factors affect the quality of clove production, for example,
the altitude of the place affects the content (level) of clove oil. The results of expert research
show that in areas that have an altitude between 500 - 900 meters above sea level, clove oil
content tends to be high, while at lower altitudes and plateaus above 1000 meters above sea
level the clove oil content tends to be low.
5.1.1 Climatology
Climate is one of the factors that directly affects the growth and production of cloves in
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addition to altitude, including temperature, humidity and rainfall. Bulukumba Regency has an
average temperature ranging from 23.82ºC - 27.68ºC. Temperatures in this range are very
suitable for food crop agriculture and plantations with a humid or slightly wet climate
classification. The temperature is also in accordance with the temperature required by clove
plants, which is 24ºC - 28ºC. While the humidity in Bulukumba Regency ranges from 77 to
89 percent, where the humidity is still tolerant for the growth of clove plants that require
humidity of around 60 to 70 percent.
Bulukumba district is in the eastern sector, where the gadu season is between October
to March and the rendengan season is between April to September. Bulukumba Regency has
8 units of rain gauge stations spread across several sub-districts, including: Bettu Station,
Batukaropa Station, Bonto Bahari Station, Tanah Kongkong Station, Bulo-Bulo Station,
Bontonyeleng Station, Kajang Station, and Herlang Station. Rainfall in Bulukumba Regency
is quite high, averaging above 1000 mm per year with an average of 12 days of rain per
month with the following areas:
1. Rainfall between 800 - 1000 mm per year covers Kecamatan Ujung Bulu, parts of
Kecamatan Gantarang, parts of Kecamatan Ujung Loe and most of Kecamatan Bonto
Bahari.
2. Rainfall between 1000 - 1500 mm per year covers parts of Kecamatan Gantarang, parts of
Kecamatan Ujung Loe and parts of Kecamatan Bonto Tiro.
3. Rainfall ranges from 1500 - 2000 mm per year covering Gantarang sub-district, Kajang
sub-district and some sub-districts (Rilau Ale, Ujung Loe, Kindang, Bulukumpa, Bonto
Tiro, Herlang).
4. Rainfall above 2000 mm per year includes Bulukumpa, Rilau Ale, Kindang and Herlang
sub-districts.
5.1.2 Soil Type
Soils in Bulukumba Regency are dominated by Latosol and Mediterranean soil types.
Specifically, it consists of gray-brown Hydromorphic Alluvial soils with parent material of
sand clay deposits found on the coast and partly in the northern part of the land. While
regosol and mediteran soils are found in undulating to hilly areas in the western region.
5.1.3 Land Use
Land use is a classification in utilizing land in general. Bulukumba Regency has
considerable natural resources with potential land use. In general, land in Bulukumba
Regency is used as paddy fields, fields/huma/gardens/ponds/ponds, plantations, community
forests, and others. The extent of land use in Bulukumba Regency can be seen in Table 4.
Based on the data in Table 4, it shows that most of the land use in Bulukumba Regency
is in the form of fields/huma/gardens/ponds/ponds and also plantations with an area of 370.78
Ha and 334.57 Ha respectively. The largest rice field land use is in Gantarang Sub-district
with an area of 80.11 hectares and the smallest in Bonto Bahari Sub-district with an area of
0.63 hectares. Land use for fields/huma/gardens/ponds/ponds is largest in Ujung Loe sub-
district at 72.23 hectares and smallest in Bulukumpa sub-district at 0.74 hectares. Land use
for plantations is highest in Bulukumpa sub-district at 122.01 ha and lowest in Bonto Bahari
sub-district at 11.75 ha. Land use for community forests is dominated by Kecamatan Rilau
Ale with an area of 6.01 ha, followed by Kecamatan Bonto Bahari with an area of 4.00 ha
and Kajang with an area of 3.37 ha. Meanwhile, other land uses are largest in Ujung Loe
sub-district at 6.51 ha and Bonto Tiro at 6.50 ha.
5.2 Demographic Situation
The population of Bulukumba Regency based on the results of the 2020 Population
Census was 437,607 people consisting of 213,443 male residents and 224,164 female
residents. Compared to the results of the 2010 Population Census, the population of
Bulukumba Regency experienced annual growth of 1.04 percent. Meanwhile, the sex ratio in
2020 of the male population to the female population was 95.2 percent. The total population
and percentage of the population of Bulukumba Regency can be seen in Table 5.
The data in Table 5 shows that the population of Bulukumba Regency based on the
results of the 2020 Population Census is 437,620 people, where each sub-district has a
population with a different percentage. The highest population is located in Kecamatan
Gantarang, which is 81,170 people with a percentage of 18.55 percent. While the lowest
population is in Bonto Tiro Sub-district, which is 26,920 pe o p l e with a percentage of 6.15
percent.
In addition to population and population percentage, population density and population
growth rate are also very important in a region. Population density is the ratio of the number
of people per square kilometer, while the population growth rate is a number that shows the
percentage of population increase in a certain period of time (per year). The population
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density and population growth rate of Bulukumba Regency can be seen in Table 6.
Based on the data in Table 6, the population density in Bulukumba Regency in 2020
reached 364 people/km². The population density in the 10 sub-districts is quite diverse with
the highest population density located in Kecamatan Ujung Bulu with a density of 3,914
people/km² and the lowest in Kecamatan Kindang at 213 people/km². The population growth
rate in Bulukumba Regency reached 1.04 percent. The highest population growth rate was in
Kecamatan Ujung Loe at 1.77 percent and the lowest in Kecamatan Ujung Bulu at 0.24
percent.
Age is the level of age value owned by a person. Age determines the level of work
productivity of a person. Meanwhile, gender provides a certain classification in the type of
work. Gender can influence the standard of living and life of the population in an area. The
population of Bulukumba Regency based on age group and gender can be seen in Table 7.
Based on the data in Table 7, it shows that the highest population of Bulukumba
Regency by age group is in the age range of 10 to 14 years, which is 37,222 people with a
male population of 19,002 people and a female population of 18,220 people. Meanwhile, the
lowest population was in the age range of 75 years and over, where the male population was
3,683 and the female population was 5,036. The highest number of male residents is in the
age range of 10 to 14 years and the lowest is in the age range of 75 years and over.
Meanwhile, the highest number of female residents is in the age range of 20 to 24 years and
the lowest is in the age range of 70 to 74 years.
5.3 Top Potential
The agricultural sector is a sector that has a strategic role in the structure of national
economic development. The structure of the Indonesian economy has shifted from the
agricultural sector to the industrial sector. Nevertheless, the agricultural sector still has an
important role in economic development. This is because in addition to meeting the food
needs of the community, the agricultural sector is also a provider of raw materials for
industrial needs. Therefore, the government always tries to increase agricultural productivity
because it is expected to improve the community's economy and will spur regional economic
growth.
Bulukumba Regency places the agricultural sector as one of the leading potentials that
contributes the most to regional income and economy. This is supported by extensive land
resources, suitable climate and great genetic diversity of biological resources. This condition
is reflected in the area of agricultural potential consisting of rice fields and non-rice fields
until 2017, which amounted to 104,321 hectares. The potential of cultivated paddy fields until
2017 was 22,458 hectares, while the potential of non-rice fields was 81,863 hectares.
5.3.1 Food Crop Potential
Food crops that are very potential in Bulukumba Regency, namely rice plants and are
the main food for the community. In addition, there are also other food crops such as corn,
cassava, sweet potatoes, peanuts, green beans, and soybeans, which are intercrops or
intermediate crops planted by farmers after one/two harvests of rice crops, especially in rice
field locations while in non-rice field locations these crops are among the main crops.
Rice production in Bulukumba Regency in 2020 was 263,592 tons with an average
production of 61.33 Kw/Ha, continuing to increase from year to year, of course also
supported by increasingly good irrigation facilities and infrastructure. The corn production
was 125,705.4 tons with an average production of 42.34 Kw/Ha. The majority of corn crops
are spread across 10 sub-districts. Cassava production was 17,926.70 tons, with an average
production of 148.65 Kw/Ha. The largest area of cassava is located in Kecamatan Rilau Ale
and Kecamatan Kajang. Sweet potato production was 2,943.18 tons, with an average
production of 121.37 Kw/Ha. One of the largest areas of sweet potato crops is located in
Kecamatan Gantarang. Groundnut production reached 6,750.75 tons, with an average
production of 22.72 Kw/Ha. The largest areas of groundnut are located in Bonto Bahari and
Bonto Tiro sub-districts. Green beans reached a production of 1,925.33 tons, with an average
production of 22.70 Kw/ha. Green beans are mostly grown in Ujung Loe sub-district.
Meanwhile, soybean production can reach 1,231.67 tons with an average production of 23.82
Kw/Ha spread across 4 sub-districts, namely Gantarang, Bonto Bahari, Herlang, and Kajang
sub-districts (BPS Bulukumba Regency 2020).
5.3.2 Horticultural Crop Potential
Horticultural crops are one of the commodities that are cultivated sustainably by
farmers in Bulukumba Regency, in addition to food crops and plantations. The types of fruits
grown in Bulukumba Regency are mango, durian, siam orange, banana, papaya, salak,
rambutan, melon, watermelon, and duku/langsat. While the types of vegetables, namely long
beans, garlic, shallots, tomatoes, cabbage, cayenne pepper, large chili and kale.
The production of long beans in Bulukumba Regency in 2020 was 1,917 quintals with a
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harvest area of 76.35 ha. Garlic production was 112 quintals with a harvest area of 6.00 ha.
Onion production was 70 quintals with a harvest area of 1.00 Ha. Tomato production was 409
quintals with a harvest area of 23.11 Ha. Cabbage production was 90 quintals with a harvest
area of 1.00 Ha. Cayenne pepper production reached 2,710 quintals with an area of 1.00 Ha
harvest area 143.40 Ha. Large chili production reached 417 quintals with a harvest area of
24.40 Ha. Meanwhile, kale production reached 1,669 quintals with a harvest area of 63.45
Ha. The production of mango plants in Bulukumba Regency in 2020 was 18,971 tons, durian
as much as 38,339 tons, siamese oranges as much as 1,974 tons, bananas as much as 26,349
tons, papaya as much as 3,812 tons, salak as much as 426 tons, rambutan as much as 33,982
tons, melon as much as 495 tons, watermelon as much as 6,877 tons and duku or langsat as
much as 17,541 tons (BPS Bulukumba Regency 2020).
5.3.3 Potential of Plantation Crops
The plantation sector is one of the strategic superior potentials that contributes greatly
to the economy of Bulukumba Regency. Based on its geographical location, 10,011 ha of
plantation crop land in Bulukumba Regency is used for coconut cultivation. Bulukumba
Regency is also one of the highest cocoa producers in South Sulawesi with a production of
4,403.31 tons in 2020. In addition, Bulukumba also has the largest rubber plantation in South
Sulawesi, namely PT London Sumatera Tbk. The plantation crops that are the superior
potential of Bulukumba Regency include: coconut and hybrida, robusta and arabica coffee,
cocoa, cloves, cashew, rubber, cotton and pepper.
1. Coconut
The types of coconut cultivated in Bulukumba Regency are deep and hybrid coconut.
One of the largest areas of coconut plants is in Kajang and Herlang sub-districts. Coconut
production in 2020 reached around 3,052.80 tons with an area of 10,011 Ha, an increase
when compared to 2019 which only reached 2,535.80 tons with an area of 11,646 Ha.
2. Coffee
There are two types of coffee cultivated in Bulukumba Regency, namely robusta and
arabica coffee. Coffee plantation areas are located in three sub-districts, namely Gantarang,
Bulukumpa and Kindang. Coffee production in 2020 was 1,356.42 tons with an area of 4,113
ha, a decrease when compared to 2019 which reached 1,380.53 tons with an area of 4,318 ha.
3. Cocoa
Cocoa is a plantation crop in Bulukumba Regency with the highest production. One of
the largest areas of cocoa plantation is in Herlang Sub-district. Cocoa production in 2020
reached around 4,403.31 tons with an area of 7,419 Ha, an increase compared to 2019 with a
production of 4,313.61 tons with an area of 7,643 Ha.
4. Cloves
Cloves are one of the leading commodities of plantation crops in Bulukumba Regency
that are in great demand and have experienced an increasing trend in production in the last
four years. Clove production in 2020 reached 719.99 tons with an area of 6,944 hectares,
where the average production was around 300 kg of dried cloves per hectare. The largest
areas of clove plantations are spread across four sub-districts, namely Kindang, Bulukumpa,
Gantarang, and Rilau Ale.
5. Cashew
One of the largest areas of cashew trees is in Bonto Tiro Sub-district, which is about
379 hectares. Cashew production in 2014 was around 178 tons with an area of 1,212 hectares,
a decrease compared to 2013 which was able to reach 219 tons with an area of 1,259 hectares.
6. Nutmeg
Nutmeg has been an important trade commodity since colonial times. Indonesia
supplies around 60 percent of the world's total nutmeg market every year. The largest area of
nutmeg plantation in Bulukumba Regency is located in Bulukumpa Sub-district. Farmers in
Bulukumba Regency began to look at and develop nutmeg in 2011 in two sub-districts,
namely Bulukumpa and Rilau Ale sub-districts, then the following year followed the sub-
districts of Gantarang, Kindang and Ujung Loe. Nutmeg production in 2014 reached around
25.70 tons with a planted area of 401 hectares and 551 farmers.
7. Pepper
Pepper is a spice crop that is much needed by people in Indonesia, including in
Bulukumba Regency. Pepper plantation areas in Bulukumba Regency are spread across eight
sub-districts, namely Gantarang, Ujung Loe, Bonto Bahari, Bonto Tiro, Kajang, Bulukumpa,
Rilau Ale, and Kindang. Pepper production in 2014 reached around 253 tons with an area of
1,196 hectares, an increase when compared to 2013 production which only reached 235 tons.
The highest pepper production was found in Kecamatan Rilau Ale, which produced 123 tons
with an area of 571 hectares.
8. Cotton
Bulukumba district is the largest cotton producer in South Sulawesi. Bulukumba district
also has the largest cotton company, PT Sulawesi Cotton Industry, which was established in
1970 and is still operating today. The company is located in Jalanjang, Gantarang sub-district.
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Currently, cotton crop is developed in four sub-districts, namely Herlang sub-district
covering 583 ha, Kajang sub-district covering 583 ha, Ujung Loe sub-district covering 180
ha, and Bonto Tiro sub-district covering 137 ha. The harvest area of cotton crop fluctuates
every year and tends to decrease. This is due to the drastic decline in cotton crop production
per hectare from year to year, so that many people use their land for other crops. The
production of cotton in 2014 was 2,782.96 tons.
9. Rubber
Rubber plantations in Bulukumba Regency are divided into two, namely community
plantations and private plantations managed by PT London Sumatra Tbk. However, most of
the rubber plants are handled by PT. London Sumatra Tbk which is managed in two sub-
districts, namely the Palangisang production area located in Ujung Loe Sub-district and the
Balangriri production area located in Bulukumpa Sub-district. In the production process, the
company involves the local community from planting to processing. In addition, the company
also partners with local communities in the form of plasma farmers, where the land used is
community land and the results are purchased by the company. Rubber production managed
by the community for 2014 was as much as 2,183 tons, an increase in production from 2013
which only reached 1,354 tons. As for the production of PT London Sumatra Tbk, in 2014
production reached 43,435.51 tons of exports of 33,163.20 tons with a workforce of 159
people.
5.3.4 Fisheries and Marine Potential
The fisheries potential of Bulukumba Regency consists of capture fisheries (marine
fisheries) and aquaculture (inland fisheries). The potential of marine fisheries is found in
seven sub-districts, namely Gantarang, Ujung Bulu, Ujung Loe, Bonto Bahari, Bonto Tiro,
Herlang and Kajang. Meanwhile, the potential of inland fisheries is found in all sub-districts.
The types of marine fish produced include skipjack, tuna, tuna, kangaroo, mackerel, mine,
lamuru, grouper, and several other marine fish. Most of the capture or marine fish in the
waters of Bulukumba Regency have export potential.
Production of capture fisheries (marine fisheries) in Bulukumba Regency i n 2014
reached 53,612 tons, an increase of 62 percent from the previous year. The largest production
came from Kajang Sub-district, which was 11,996 tons. The production of marine fish
species from year to year fluctuates, but the highest production of fish species during the last
three years was occupied by swallowfish with a total production of 8,958.5 tons in 2012,
9,092.9 tons in 2013, and 14,459 tons in 2014 (BAPPEDA Bulukumba Regency 2015).
In addition to marine fisheries, aquaculture such as ponds, ponds, and rice mina are also
potentials that can be developed in Bulukumba Regency. The types of pond aquaculture
commodities are milkfish, api-api shrimp, tiger shrimp, and in 2006 seaweed aquaculture
began to be developed in ponds. Pond aquaculture commodities developed are carp and
tilapia. Meanwhile, rice field cultivation commodities (mina padi) include goldfish, tilapia
and catfish.
Production of aquaculture (inland fisheries) in 2014 reached 133,940.6 tons, a very
significant increase compared to 2013 which only reached 17,715.2 tons. In addition to
fisheries, there is also a seaweed commodity along the coast. In 2014, seaweed production in
Bulukumba Regency reached 128,360 tons, experiencing a very significant increase of
113,862 tons or 785.36 percent when compared to 2013 production which only reached
14,498 tons. This seaweed commodity is very popular with the community because the way
and technique of development is very easy and requires relatively low costs (BAPPEDA
Bulukumba Regency 2015).
5.3.5 Livestock Potential
The potential of livestock owned by Bulukumba Regency includes: large livestock such
as cattle, buffaloes and horses; small livestock such as goats and sheep; poultry such as native
chickens, laying hens, broilers and ducks. The number of cattle in Bulukumba Regency in
2020 was 26,797 h e a d s , 1,505 buffaloes, 26,304 horses, 26,304 goats, as many as 5,000
cattle and 1,000 sheep 35,463 chickens, 745,015 native chickens, 638,724 laying hens,
2,309,930 broilers, and 63,185 ducks (BPS Kabupaten Bulukumba 2021).
5.3.6 Forestry Potential
The forest area in Bulukumba Regency reaches 9,294.78 hectares spread across 6 sub-
districts (Gantarang, Bonto Bahari, Kajang, Bulukumpa, Rilau Ale, and Kindang) with the
classification of protected forests and production forests (limited and permanent) and nature
reserves. The area of protected forest in Bulukumba Regency is 4,575 hectares, production
forest is 1,352 hectares, nature reserve and nature conservation is 3,765 hectares (BAPPEDA
Bulukumba Regency 2015).
5.4 Gross Regional Domestic Product (GRDP)
Gross Domestic Product at the national level and Gross Regional Domestic Product at
the regional (provincial) level illustrate the ability of a region to create added value at a
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certain time. The development of Gross Regional Domestic Product clearly illustrates the
economic development of a region or area. To compile GDP and GRDP, two approaches are
used, namely business fields and expenditures. Each presents the composition of value-added
data broken down by source of economic activity (business field) and by its use component.
GDP and GRDP from the business field side are the sum of all components of gross value
added that can be created by economic sectors for their various production activities.
Meanwhile, the expenditure side explains the use of the added value. The Gross Regional
Domestic Product of Bulukumba Regency based on sources of economic activity (business
fields) can be seen in Table 8.
5.5 KUD Mattiro Bulu
One of the agricultural cooperatives in Bulukumba Regency is KUD Mattiro Bulu. This
cooperative was formed on February 25, 1975 on the initiative of H. Palessei and Abdullah
Karim to fulfill Presidential Instruction Number 4 of 1973. The name Mattiro Bulu was given
to the cooperative because it is located not far from the slopes of Mount Bangkeng Bukit,
namely in Bontosunggu Village, Gantarang District, Bulukumba Regency. Mattiro Bulu in
Bugis language is divided into two words, Mattiro and Bulu. Mattiro means to look at and
Bulu means mountain. So, Mattito Bulu means looking at the mountain. KUD Mattito Bulu
has won the title of national exemplary in 1984, even the head of the cooperative was once
appointed as chairman of PUSKUD South Sulawesi.
Basically, KUD Mattiro Bulu does grain and clove marketing business. Therefore, to
support these activities, KUD Mattiro Bulu has several facilities and services, including
cooperative offices and manager's housing, three-unit building with a capacity of 2,000 tons,
multipurpose building used for meeting rooms, grain and clove processing warehouse three
units with a capacity of 3 tons, drying floor four units, silo dryer warehouse and proccing rice
repiner/cleaner, mini market, fertilizer and pesticide kiosk four units in three villages with a
capacity of 200 tons, fuel oil kiosk, canteen, library, and sports facilities.
As for some of the efforts / activities undertaken by KUD Mattiro Bulu to increase the
capacity of members, among others; a) giving prizes in improving the achievements of
members in the form of food procurement, the number of deposits of the best members, and
prizes at the annual membership meeting participants, b) provide loans or credit at certain
times to members, c) establish kiosks in some villages that specifically serve the procurement
and distribution of production facilities (fertilizers and pesticides) and alsintan to members
and the general public, d) providing training and counseling on rice and clove cultivation to
members at certain times, e) providing transportation facilities to members, f) participating in
job training for inter-provincial managers and administrators g) opening opportunities for the
implementation of field work experience for students of SMK and SMA Negeri in
Bulukumba Regency, and h) providing housing and ready-to-build plots for employees and
cooperative members.
6.1 Characteristics of Respondent Farmers
Characteristics of respondent farmers are used to determine the diversity of respondents
based on gender, age of respondents, education level, length of clove farming, and length of
time as a cooperative member. These characteristics are expected to provide a fairly clear
picture of the condition of the respondents and their relationship to the problems and
objectives of the study.
6.1.1 Gender
Gender provides a certain classification in types of work, including in farming
activities. Men usually have different types of work than women, although sometimes there
are some jobs that can be done by both men and women. Thus, gender can influence the
standard of living and livelihood of farmers. In this study, there were more male respondents
than female. The number of respondents in this study were 75 clove farmers who were active
cooperative members. Respondents consisted of 55 male farmers and 20 female farmers.
6.1.2 Age of Respondent
Age is the level of age value owned by a person. In agriculture the age level is an
important factor, the younger the age the power to be able to produce will be maximized. Age
is one of the factors that affect productivity, both in the form of products and services. A
person's age determines a person's work achievement or performance. Therefore, age
determines the level of work productivity of a person, especially farmers.
The older a person gets, the more his or her activities will be limited. Age affects a
person's level of strength and health, in other words, age also measures the level of human
productivity. Age is also one of the factors determining the level of development of an area.
Human age can be categorized into two characteristics or types, namely productive age (15 to
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60 years) and non-productive age (0 to 14 years and 60 years and over). The age of the farmer
will affect the physical and way of thinking. The majority of respondents in this study are still
classified as productive. The details of t h e age of respondents in this study, namely
respondents aged 23 to 28 years as many as 3 people, 29 to 34 years as many as 21 people,
and respondents over the age of 34 years as many as 51 people.
6.1.3 Education Level
The level of education is one of the factors that can support the competence of
respondent farmers. The level of education can also affect farmers' decision-making in
running the farm and the ability of farmers to manage their farms. The level of education also
affects the mindset of farmers in acting and making decisions. Farmer education High
respondents can at least help to absorb technology and innovations. Farmers who have a high
level of education tend to be easier in adopting technology and innovation, in this case
agricultural technology and innovation. Conversely, farmers who have a low level of
education tend to be difficult or slow in adopting technology and innovations. Respondents in
this study have different levels of education. The level of education is very influential in the
clove agribusiness and participation as a member of the cooperative. The education level of
respondent farmers, namely Elementary School (SD) as many as 38 people, Junior High
School (SMP) as many as 29 people, and Senior High School (SMA) as many as 8 people.
6.1.4 Length of Time in Farming
Length of time in farming is one indicator that indirectly supports the overall success of
farming by farmers. Farmers who have experience and are also supported by complete
production facilities are better able to increase productivity when compared to farmers who
are new to farming. In this study, the length of time in farming shows how long the
respondent farmers have been in clove farming, where the length of time in farming tends to
affect the knowledge and experience of respondent farmers in clove farming. The longer the
respondent farmers cultivate cloves, the more knowledge and experience they are considered
to have so that they can increase production. The majority of respondent farmers in this study
have started farming in a fairly long period of time, namely since adolescence which is a
hereditary tradition. The duration of clove farming of respondent farmers, namely 3 to 8 years
as many as 6 people, 9 to 14 years as many as 37 people, 15 to 20 years as many as 21 people
and above 20 years as many as 11 people.
6.1.5 Length of time as a cooperative member
Based on one of the principles of cooperatives in Indonesia, the nature of cooperative
membership is voluntary and open. Voluntary means that each cooperative member registers
to become a member of the cooperative based on his or her own will, and can submit a
resignation if he or she does not benefit from the cooperative itself. Meanwhile, open means
that any member who is able to fulfill the membership requirements of a cooperative can be
accepted as a member of the cooperative concerned. Length of being a member of the
cooperative affects the participation of members in cooperative activities. The length of time
as a member of the cooperative farmers respondents, namely 3 to 8 years as many as 7
people, 9 to 14 years as many as 15 people, 15 to 20 years as many as 43 people, and above
20 years as many as 10 people.
6.2 Clove Agribusiness in Bulukumba Regency
Agribusiness is the concept of an integrative system and consists of several subsystems,
namely upstream agribusiness subsystems, farming subsystems, downstream agribusiness
subsystems, and service and support subsystems. The key to a successful agribusiness system
is when there is balanced cooperation, value-added agricultural products, sustainable
agriculture, and fair profits. The agribusiness-oriented development strategy basically shows
the direction that agribusiness development is a very important effort to achieve several
objectives, namely: a) attracting and encouraging the emergence of new industries in the
agricultural sector, b) creating a resilient agricultural structure,
c) create added value, d) increase foreign exchange earnings, e) be efficient and flexible, f)
create jobs, and g) improve income distribution (Soekartawi 2001).
Clove agribusiness in Bulukumba Regency has been carried out by farmers since 1972
and has been passed down from generation to generation until now. This is because cloves
are a promising plantation commodity that attracts farmers to cultivate it intensively. The
types of clove plants developed in Bulukumba Regency are Si Putih, Si Kotok, Zanzibar and
Ambon.
6.2.1 Up Stream Agribusiness Subsystem
The upstream agribusiness subsystem is an off-farm subsystem that includes the
procurement and distribution of agricultural production facilities, including seeds, fertilizers,
pesticides and agricultural equipment produced by industry as capital for agricultural
activities. Production facilities are a very decisive factor in the cultivation of crops in a
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particular region. Production facilities play an important role in achieving production in
accordance with the desired objectives. Facilities that are directly related to plant growth in
the field are seeds or seedlings, fertilizers, plant enemy control chemicals or plant growth
stimulants, and agricultural tools.
Production facilities in the clove agribusiness in Bulukumba Regency are generally
relatively available such as superior seeds, fertilizers and pesticides. In general, clove
seedlings are grown by farmers themselves using polybag planting media because the price is
relatively cheap compared to pots. After 2 to 3 years of age, the seedlings are then moved to
new lands or rejuvenation lands for clove plants that are no longer productive. Farmers also
sometimes get assistance with Zanzibar variety clove seedlings from the government which
are distributed through farmer groups. As for fertilizers, farmers use organic and inorganic
fertilizers. Organic fertilizers commonly used are cow and goat manure, while inorganic
fertilizers used are Urea, ZA, and TSP. Organic fertilizers are usually obtained by farmers
through cooperatives and farmer groups. In addition to fertilizers, farmers also use pesticides
in clove cultivation to control pests and diseases that can interfere with plant growth.
6.2.2 On-Farm Agribusiness Subsystem
One subsystem that plays an important role in the agribusiness system is the farming
subsystem. According to Saragih (1998), the farming subsystem is an activity of managing
inputs (land, labor, capital, technology and management) to produce agricultural products in
the form of food, plantation products, fruits, flowers, ornamental plants, livestock products,
animals and fish. Meanwhile, Adiwilaga (1992) defines the farming subsystem as a business
activity human to cultivate his land with the intention of obtaining crop or animal products
without resulting in a reduction in the ability of the land concerned to obtain further results.
The farming subsystem in clove agribusiness is related to clove crop production and
management. Production is the most important thing in every business and is an important
component in the agribusiness system, where all activities carried out, especially in
agriculture, aim to increase production. One of the efforts made by clove farmers in
Bulukumba Regency to increase production is to carry out intense maintenance of clove
plants such as fertilizing, watering, replanting, weeding, and controlling pests and diseases.
Clove plants that are well cared for will produce abundant and long-lived flower production.
Clove care is carried out in the long term as long as the tree is considered still able to provide
optimal production results. Especially when the clove plant is still 1 to 5 years old, where the
clove tree is still very susceptible to disease and can die at any time.
Replanting is usually done by farmers to replace plants that die or grow poorly.
Meanwhile, weeding is done by cleaning wild plants and weeds that grow around clove
plants that can interfere with plant growth. Weeding is usually done twice a year, in February
and September, while harvesting is done from June to August. Weeding needs to be done
after harvest so that yields remain optimal in the following year. In general, clove farmers in
Bulukumba Regency manage their own farms with the help of family members, starting from
land preparation to maintenance, but for harvesting farmers who have large areas of land
usually use labor outside the family even from outside the sub-district, with a wage system of
Rp 3,000 per liter.
6.2.3 Down-Stream Agribusiness Subsystems
According to Soekartawi (1993), the downstream agribusiness subsystem is an
agribusiness subsystem consisting of two types of activities, namely primary commodity
processing and primary commodity marketing or processed products. Primary commodity
processing activities are producing processed products both semi-finished products and
finished goods that are ready for consumer consumption by using primary commodity raw
materials, this activity is also often called agro-industry. The marketing activities start from
collecting primary commodities to retailing to consumers. Meanwhile, according to Maulida
(2014), the downstream agribusiness subsystem is an economic activity that processes farm
products into processed products and then directly distributed to consumers and some are
processed first and then distributed to consumers.
The downstream agribusiness subsystem is related to the marketing of agricultural
products. Marketing is the main thing that must be done by every business actor, both goods
and services, as well as agricultural commodity businesses, marketing is the thing that
determines the success of the farming done. Even though farmers are successful in the
cultivation subsystem but do not have the ability to market their products, the farming that is
carried out will not be successful.
Clove farmers in Bulukumba District usually tend to market their crops through
intermediary traders, large traders and cooperatives. Farmers usually sell their cloves to
intermediary traders in the villages and sub-districts, and then distribute them to cooperatives
and large traders in the district capital. Farmers also sometimes market their crops directly to
cooperatives and large traders. However, it is relatively easier to sell to village intermediaries
because farmers do not have to incur transportation costs. In addition, the prices offered by
intermediary traders are almost the same as those offered by cooperatives and large traders,
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due to the cooperation between cooperatives and large traders with intermediary traders in the
village. The majority of intermediary traders are members of cooperatives and agents of large
traders in the district capital, who cooperate in the marketing of cloves. Farmers usually sell
their harvest in the form of wet cloves, dried cloves, and sell directly on the tree before
harvesting based on estimates. However, selling through estimation, known as the ijon
system, tends to be detrimental to farmers because the exact production yield of each tree
within a specified and agreed area is unknown. The average price of cloves in Bulukumba
Regency ranges from Rp 72,000 to Rp 100,000 per kilogram for dried cloves and Rp 28,000
per kilogram for wet cloves.
Clove plants have considerable potential to be developed because all parts of the plant
can generate income for farmers. In addition to the fruit which is marketed at a relatively
expensive price, flowers and fallen clove leaves can also be distilled to produce clove oil.
There are several SMEs in Bulukumba Regency that do the business of distilling cloves into
essential oil or clove essential oil. The technology used in the production process of clove oil
processing is still simple or traditional technology. The commonly used process is distillation
with water vapor. The price of clove oil in Bulukumba Regency ranges from Rp 100,000 to
Rp 150,000 per kilogram.
6.2.4 Services and Support Subsystem
In the agribusiness system, the supporting subsystem is the activity of supporting,
serving and providing services for upstream, downstream and cultivation subsystems. The
parties involved in this subsystem are government and private institutions such as
cooperatives, banking, research and education, counseling and insurance. Services and
support subsystems in the clove agribusiness in Bulukumba Regency are relatively available,
but overall performance is not optimal. Marketing and financing institutions are not well
coordinated. Most farmers depend on traders for capital loans, so farmers feel obliged to sell
their crops to these traders. To increase production, training and extension programs have
been conducted by the local government and cigarette companies to increase clove
productivity. Extension workers act as a conduit for local government programs to reach
farmers and assist farmers in their efforts to increase clove productivity process of improving
the quality of farmers. Training and counseling on clove cultivation is carried out routinely
every year and is usually carried out before the harvest season. In addition, there are
Postgraduate students of Chemical Engineering FTI UMI who conduct regular coaching and
mentoring of SMEs to improve the effectiveness and quality of the clove oil refining process.
6.3 The Role of Cooperatives in Clove Agribusiness in Bulukumba Regency
Cooperatives are one of the farmer institutions that aim to improve the welfare of the
community by basing its activities on cooperative principles as a people's economic
movement based on family principles. Cooperatives contain two elements, namely economic
elements and social elements that are related to each other. It is said to have an economic
element because the purpose of the cooperative itself is to achieve the welfare of members.
Meanwhile, the social element can be seen from the principle upheld in the cooperative,
namely the principle of kinship.
Cooperatives are one of the pillars of Indonesia's economic development that plays a
role in the development of the agricultural sector. At a macro level, the role of cooperatives in
the economy, among others, is to increase social and economic benefits for the community
and the environment, a deep understanding of the principles and procedures of cooperatives,
increase agricultural production, income and welfare, increase equitable justice and increase
employment opportunities (Ketaren 2007). The role of cooperatives in Indonesia is expected
to remain even more important, especially in relation to becoming a vehicle for the
development of the people's economy (Krisnamurthi 1998).
After going through various cooperative development policies during the New Order
period that were biased towards the dominance of the government's role, as well as the
conditions of the economic crisis that hit Indonesia, the question arises of how the actual role
of cooperatives in society, what the prospects are and what cooperative development
strategies should be carried out in the future. Looking at the nature and conditions of the
current economy, cooperatives are seen as having a strategic meaning in the future.
The role of cooperatives will increase along with the increasing participation of
members in all cooperative activities both in terms of organization and business. Improved
cooperative performance will also have an impact on social and economic benefits for
cooperative members. Knowing the relationship between performance, participation and
benefits will make it easier for cooperatives to make policies that can prosper members and
cooperative development. So far, the role of cooperatives is sufficiently assessed by
measuring from a financial perspective only, but in reality, financial performance
measurement only provides evaluation in the short term so that it cannot be used as a
reference in determining the success of a cooperative as a business entity, so that the overall
performance of the cooperative which concerns the interests of human resources,
organizations and cooperative members.
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In increasing the role of cooperatives, the programs run by cooperatives fully require
the support of members. Member participation is the most important factor in supporting the
success or development of an organization including cooperatives. Through participation all
aspects related to the implementation of activities to achieve goals can be realized. Without
member participation, the possibility of low or decreased efficiency and effectiveness of
members in order to achieve cooperative performance will be greater (Ropke 2000).
The role of cooperatives is analyzed through the attributes of the assessment of
cooperative members as service users on the performance of cooperatives as service
providers based on their level of importance and level of performance. The results of the
analysis show the average value of the level of importance of 4.93 and the performance level
of 4.06. The highest value at the level of importance is the attribute of the price of cloves
more expensive than the price on the market and participate in determining cooperative
policy with a value of 4.98. One factor that attracts farmers in the clove agribusiness is the
relatively high price, but tends to be unstable. Therefore, KUD Mattiro Bulu as one of the
supporting institutions in the clove agribusiness helps farmers, especially cooperative
members in marketing their clove crops at a relatively stable price and in accordance with the
market price, so that farmers are not trapped by middlemen who sometimes set prices much
cheaper than the market price. Member participation in every cooperative activity is one of
the benchmarks in determining the success of the cooperative, including member
involvement in determining cooperative policies, thereby increasing the loyalty of
cooperative members. Cooperative members need to be included in every activity carried out
by the cooperative, including in decision making. For example, participating in voting in the
election of cooperative management at the annual membership meeting.
The highest value for the performance level is the attribute of strategic cooperative
location (easy to reach), the quality of production facilities, and the quality of agricultural
tools and machinery with a value of 4.92. KUD Mattiro Bulu location is strategic because it is
located in the city center of the sub-district, making it easily accessible to members. KUD
Mattiro Bulu plays a role in distributing production facilities as well as tools and agricultural
machinery in cooperation with the local government. One of the most important things in this
activity is the quality of these facilities. Good agricultural facilities will help farmers in their
farming activities so as to increase the productivity of cloves.
The lowest value at the level of importance is the comparative study attribute with
successful cooperatives with a value of 4.65. According to cooperative members, this
attribute is less important and requires expensive costs in its implementation, so it is better
not to be implemented and focus on improving the internal management of the cooperative.
While the lowest value for the level of performance is attributes participate in determining
cooperative policy, cooperative competitive strategy, and comparative studies with
cooperatives that have been successful with a value of 2.74. During this time, KUD Mattiro
Bulu members feel less involved in any cooperative activities, so that their sense of
ownership of the cooperative to be low even assume that the cooperative belongs to the
board. KUD Matitiro Bulu also does not have an effective strategy to compete with other
cooperatives because it only focuses on marketing grain and cloves, not following the
development of new businesses. One of the businesses that the cooperative should be able to
do is clove oil distillation to increase added value and create jobs for cooperative members.
6.3.1 Quadrant I: Top Priority
Quadrant I is an attribute that is considered important by cooperative members, but in
practice it is not as expected. Therefore, maximum effort is needed to obtain maximum
performance results (as expected). There are 13 attributes (39.39 percent) included in
quadrant I, including the ease of getting access to information (1), cooperative services are
always in accordance with the scheduled service time (3), management performance (4),
speed in service (6), accuracy in service (7), credit disbursement is carried out in accordance
with the promised time (13), procurement and distribution of production facilities (21),
procurement and distribution of agricultural tools and machinery (22), training and
counseling on clove agribusiness (28), participating in determining cooperative policies (29),
knowing the development of other cooperatives (30), the ability to compete in cooperatives
(31) and cooperative competitive strategies (32).
The attribute of easy access to information has an importance level value of 4.97 and a
satisfaction level of 3.49. Ease of access to information is considered important by
cooperative members, but in practice it is not in accordance with expectations so it needs to
be improved. Information submitted by cooperative management sometimes does not spread
evenly and is only known by a few cooperative members, for example information about the
implementation of cooperative management training and counseling. This causes only a few
members who participate in these activities. Therefore, KUD Mattiro Bulu need to create a
strategy to disseminate information more effectively and evenly.
Cooperative services are always in accordance with the scheduled service time has an
importance level value of 4.94 and a satisfaction level of 3.84. Service is one of the factors
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that make cooperative members feel at home and comfortable in a cooperative. KUD Mattiro
Bulu service performance is considered quite good, but sometimes not in accordance with the
scheduled service time. For example, sometimes cooperative members need the signature of
the cooperative board, but the board could not go to the office and suggested to visit him at
night. In fact, the cooperative's service time should be from morning to afternoon. In addition,
at night is the farmers' resting schedule after working in the fields all day.
Management performance has an importance level value of 4.96 and a satisfaction level
of 3.41. According to cooperative members, the performance of the management determines
the success of the cooperative, where the management is the mandate of a cooperative to
carry out the decisions of the annual members' meeting. The board is formed according to the
request in the member meeting, where the board is a member of the cooperative who has the
trust of the member meeting to lead the organization and business of the cooperative for a
certain period. Members who can become administrators are only members with certain
criteria who meet certain requirements who can be responsible as administrators. The
management must be fair to all members where all decisions must be made through
consensus with cooperative members. This is in line with the opinion of Yusdja and Sayuti
(2002) who state that cooperatives organize a democratic economic life. Therefore, in each of
its activities the cooperative acts not at the will of the management, but based on the wishes
of the cooperative members, which must first be discussed. This is a reflection of
implementation of economic democracy. The success of a cooperative is directly the success
of the members, otherwise if there is mismanagement in the management of the cooperative
will harm the development of cooperative members. During this time, the performance of
KUD Mattiro Bulu management has not been in accordance with the expectations of
members so it needs to be improved including in the delivery of information and distribution
of production facilities.
Speed in service has an importance level value of 4.93 and a satisfaction level of 3.89,
while the accuracy attribute in service has an importance level value of 4.94 and a satisfaction
level of 3.76. Speed and accuracy in service KUD Mattiro Bulu not in accordance with the
expectations of members so that its performance needs to be improved. This is because some
cooperative management people live in the Regency Capital so that sometimes they are late
to the office and sometimes even new to the office when it's almost noon. Whereas
cooperative members usually visit the cooperative in the morning before leaving for the
garden.
6.3.2 Quadrant II: Maintain Achievement
Quadrant II contains attributes that are considered important by cooperative members
and are in accordance with what is expected by cooperative members, so it is necessary to
continue to maintain their performance. There are 12 attributes (33.33 percent) contained in
this quadrant, namely the attributes of new member registration in accordance with applicable
procedures (2), the Annual Member Meeting (RAT) is held regularly every year (8), the
distribution of the remaining Business Results (SHU) transparently (9), mandatory savings
and principal savings (10), the credit process follows applicable procedures (12), credit
interest is smaller than other microfinance (14), strategic cooperative location (easy to reach)
(15), clean and comfortable cooperative office conditions (16), quality of production facilities
(23), quality of agricultural tools and machinery (24), clove market certainty (25) and clove
prices are more expensive than market prices (26).
Registration of new members in accordance with applicable procedures has an
importance level value of 4.93 and a satisfaction level of 4.76. One of the benchmarks of
cooperative development is the increase in members. Registration of new members KUD
Mattiro Bulu already in accordance with applicable procedures. For example, one of the
requirements for member registration is at least 17 years old and already has a KTP.
Everyone has the right to register as a member of the cooperative
that cooperative membership must be voluntary, in accordance with one of the cooperative
principles that the nature of cooperative membership is voluntary and open. Voluntary means
that each member of the cooperative registers as a member of the cooperative based on his or
her own will and has the right to submit a resignation if he or she does not benefit from the
cooperative itself. The addition of cooperative members aims to expand the working area, but
the expansion of the working area must be considered properly because based on Sipayung's
research (2003), the addition of cooperative members can have a negative impact on the
success of the cooperative because it tends to be highcost. In addition, the size of the
cooperative's working area will increase the dispersion of members, thus reducing the
participation of cooperative members. Therefore, the addition of cooperative members must
be balanced with management capacity, cooperative resources and programs to increase
member participation.
Annual Member Meeting (RAT) held regularly every year has an importance level
value of 4.97 and a satisfaction level of 4.46. KUD Mattiro Bulu routinely carry out RAT at
the end of each year. The members' meeting is the highest power holder in the cooperative
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organization device. The power of the members' meeting is confirmed in Article 23 of Law
No. 25 of 1992, namely: a) establish the articles of association of the cooperative, b) establish
general policies
in the
field of organization, management and cooperative business,
c) determine the election, appointment, dismissal of management and supervisors, d)
establish a work plan and budget plan for revenue and expenditure of the cooperative, e)
determine the ratification of the accountability of the management in the performance of their
duties,
f) determine the distribution of the remaining business results and g) determine the merger,
consolidation, division and dissolution of cooperatives.
The transparent distribution of the remaining results of operations (SHU) has an
importance level value of 4.97 and a satisfaction level of 4.29. One of the objectives of the
cooperative is to advance the welfare of its members, including helping members increase
their income. One of the economic benefits obtained by members of the cooperative is the
profit from the business being run which is commonly called the remaining results of
operations, where the remaining results of operations obtained by the cooperative are the
benefits of the members. The greater the services of a member of the cooperative, the greater
the income earned by that member. Distribution of the remaining results of KUD Mattiro
Bulu done transparently to its members. The distribution of the remaining proceeds is usually
calculated based on the member's participation in the cooperative, for example, the
distribution of dividends based on the large purchase of production facilities or sales of
cloves made by members. In addition, in increasing the participation of members KUD
Mattiro Bulu usually provide rewards for active members by increasing the residual results of
member efforts and provide holiday allowances in the form of food for members.
Mandatory and principal savings have an importance level value of 4.97 and a
satisfaction level of 4.89. One form of member participation in the cooperative is to pay
mandatory savings and principal savings in an orderly and regular manner, where the
cooperative's operating capital is usually sourced from mandatory savings and principal
savings. Members of KUD Mattiro Bulu routine pay mandatory savings and principal
savings, which are then managed properly by the cooperative management as business capital
for clove marketing and credit for members in need.
The credit process attribute follows the applicable procedure has an importance level
value of 4.92 and a satisfaction level of 4.84. One of the efforts made by the cooperative in
improving the welfare of its members is through the provision of credit. As a service and
support institution, KUD Mattiro Bulu routinely provides credit for its members in need and
is carried out in accordance with applicable procedures. Credit applications are usually made
by members ahead of the clove harvest season for operational capital. Credit interest attribute
is smaller than other microfinance has a value of importance level of 4.93 and satisfaction
level of 4.26. In providing credit for its members, KUD Mattiro Bulu relatively easier than
other microfinance including banking, but still follow the applicable procedures. This is
because the cooperative is a family based on mutual trust.
The strategic cooperative location attribute (easy to reach) has an importance level
value of 4.96 and a satisfaction level of 4.92. KUD Mattiro Bulu location is in the city center
of Gantarang District so easily accessible to members and facilitate mobility of members if
there is an important and urgent business at the cooperative office. Attributes clean and
comfortable cooperative office conditions have a value of importance level of 4.92 and a
satisfaction level of 4.80. KUD Mattiro Bulu office is always clean and comfortable because
cooperative members who live in the area routinely do community service.
The quality of production facilities has an importance level value of 4.96 and a
satisfaction level of 4.92 while the quality of agricultural tools and machinery has an
importance level value of 4.97 and a satisfaction level of 4.92. The main purpose of
production facilities and alsintan in agriculture is to increase the productivity of farmers'
work. Therefore, the means of production and alsintan used in clove agribusiness must have
good quality in order to increase productivity. KUD Mattiro Bulu plays a role in the
procurement and distribution of production facilities and alsintan in the form of fertilizers and
pesticides in cooperation with the local government so that the quality is more assured.
The clove market certainty attribute has an importance level value of
4.96 and a satisfaction level of 4.42 while the price of cloves is more expensive than the
market price has an importance level value of 4.98 and a satisfaction level of 4.26. The
development of the clove agribusiness is closely related to the development of the clove
cigarette industry, where most of the clove production is absorbed by this industry, so the
price of cloves tends to be influenced by the demand of the clove cigarette industry. Farmers
in Bulukumba district usually sell their clove crops through cooperatives and intermediary
traders. The price of cloves in Bulukumba ranges from Rp 38,000 to Rp 120,000 per kg. This
condition reflects the high instability of the market, so the risk of clove production is very
high.
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CONCLUSIONS:
Based on the results and discussion, the conclusions of this study are as follows:
1. In general, the clove agribusiness in Bulukumba Regency has been running well and
effectively, where all subsystems complement each other to produce optimal production
and income for farmers, especially the service and support subsystems, but some
supporting institutions have not been well coordinated, one of which is the marketing
institution.
2. Based on the results of the analysis through the Importance and Performance (IPA)
approach, it can be concluded that basically KUD Mattiro Bulu as a service and supporting
institutions in clove agribusiness plays a role in all agribusiness subsystems, where the
cooperative plays a role in access to capital, access to information, access to infrastructure,
market access and adoption of innovation. The role of KUD Mattiro Bulu in access to
information has not been in accordance with the expectations of cooperative members so it
is necessary to improve its services. Attributes that need to be improved are the ease of
getting access to information and management performance. The role of KUD Mattiro
Bulu in the adoption of innovation also needs to be improved, especially education and
training of cooperative management, members participate in determining cooperative
policy, cooperative competitive strategy and comparative studies with successful
cooperatives. While the role of KUD Mattiro Bulu in access to capital and market access is
in accordance with the expectations of members of the cooperative so it is necessary to
maintain its performance, including market certainty and clove prices. KUD Mattiro Bulu
role in infrastructure access is also in accordance with expectations, but there are some
attributes that are considered too excessive so it needs to be reduced, including storage
facilities and information facilities in the form of brochures.
