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STRATEGIES TO IMPROVE THE COMPETITIVENESS OF LAYUR
FISHERMEN THROUGH THE DEVELOPMENT OF A SUPPLY
CHAIN SYSTEM
INTRODUCTION:
Cilauteureun Waters is located in Pameungpeuk District, Garut Regency, West Java.
Garut Regency has an administrative area of 4,175.90 km² with the southern boundary being
the Indian Ocean, the northern boundary being Cisompet Subdistrict, the eastern boundary
being Cibalong Subdistrict, and the western boundary being Cikelet Subdistrict. The length
of the coast of Garut Regency is around 80 km, which stretches across 7 (seven) sub-districts.
The South Coast of Garut Regency is estimated to have a sustainable potential (MSY) of
166,667 tons/year (West Java Marine and Fisheries Service 2010). These waters are one of
the waters that have potential fishery resources in the form of layur, spiny dogfish, snapper,
and shrimp/lobster. Layur and lobster are the leading commodities.
The layur commodity in the area plays a very important role in the economy of
fishermen, because it has a fairly high economic value. Layur fish are widely distributed in
all tropical and subtropical waters in the world. Layur fish in Indonesia are almost spread
and found in all coastal waters of Indonesia. According to Nontji (2007) in Indonesia there
are six types of layur fish, the most common on the coast of Java is Trichiurus haumela.
Layur fish, commonly known as ribbon fish, is one of the important commercial fish, a
potential fishery commodity and high economic prospects, and is starting to be considered
as an export commodity (Nurani et al. 2013). The demand for layur fish for export purposes,
especially in West Java, tends to increase by about 10% from 7,412.3 tons in 2008 to
8,153.5 tons in 2009 (West Java Marine and Fisheries Service 2010). This commodity is a
mainstay of Indonesian exports, because the selling price from fishermen to middlemen is
quite high at around Rp. 35,000/kg to Rp. 50,000/kg. This causes many fishermen to make
layur fish their main catch.
The increase in export demand has led to an increase in layur production at the
Cilauteureun Coastal Fishing Port (PPP). The increase was marked by the existence of an
export company at PPP Cilauteureun, CV Duta, with export destinations in Asian countries
such as China, Korea, and Japan. The existence of the company, the price of layur fish
becomes more expensive from the original price of around Rp. 25,000 / kg to Rp. 35,000 /
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kg. However, the increase in the selling price of layur fish has no effect on the income of
fishermen, because the price has not reached fishermen due to the unoptimized supply chain
system at PPP Cilauteureun in the price issue. Supply chain analysis is one of the popular
analytical frameworks used in increasing added value and competitiveness in industry. The
concept of supply chain, the fishing port is seen as one part in a unified supply chain system,
which consists of fishermen, local traders, processing industries, exporters to end consumers
(Muninggar 2008). In addition to the supply chain aspect, the problems that occur in
Cilauteureun fishermen are also caused by the high dependence of fishermen on middlemen,
so that the selling price of layur fish is under control middlemen. As a result, fishermen's
income is low with decreased competitiveness among fishermen. One of the efforts to
prevent this, it is necessary to improve the supply chain system of fish commodities and
create a strategy to increase the competitiveness of layur fishermen, so that fishermen are
not focused on selling to middlemen.
Types and Methods of Data Collection
The data used in this research process are primary data and secondary data. Primary
data is obtained from interviews with layur fish fishermen, middlemen, port managers,
companies, and baskets as in Appendix 1. While secondary data is data obtained from port
managers and enriched with other sources such as journals and books. The data collection
was obtained by surveying or directly reviewing the process of fisheries activities to each
place, with the aim of obtaining the required data.
Techniques in the data collection process were carried out by purposive sampling,
namely by selecting respondents according to the data needed. Respondents in this study
involved layur fish fishermen, middlemen, port managers, fishery product companies, and
baskets (Table 1). The technique is by distributing questionnaires, as well as reviewing
directly to the location. The following secondary data were collected:
1. Volume and value of layur production at PPP Cilauteureun Pameungpeuk Garut.
2. Data on layur fish production from the Garut Regency Marine and Fisheries Service.
3. General condition of PPP Cilauteureun Pameungpeuk Garut.
Analysis of layur supply chain management
This layur supply chain management analysis uses the data analysis used by Maulida
(2014), with the result that the tuna supply chain is good, but still not optimal and needs to
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be improved in the aspect of identifying business actors who play a role in the supply chain.
Maulida (2014) explained that this analytical framework was used to examine supply chain
problems in a company at an oceanic fishing port. Meanwhile, in this study, the framework
is used to examine supply chain problems in Cilauteureun waters with a coastal fishing port
type. The supply chain analysis framework used is a qualitative descriptive analysis using
the supply chain development method launched by the Asian Productivity Organization
(APO) which has been modified by Vost (2006) including chain objectives, network
structure, chain management, chain resources, and chain performance (Marimin and
Maghfiroh 2010). The supply chain management analysis framework is shown in Figure 2.
1. Supply chain objectives
Describes how a model of a layur supply chain takes place for a marketed product. In
addition, this market objective explains who the customers are, what they want and need
from the product.
2. Network structure
The network structure describes the members involved in the supply chain and explains
the role of each member as well as the flow of layur commodities. Supply chain actors are
described as elements in the supply chain. These elements include supply chain products,
markets, stakeholders and supporting situations.
3. Chain management
Chain management means explaining the configuration of relationships that occur in the
supply chain. The aim is to find out who acts as a regulator and the main actors in the supply
chain. Supply chain management consists of partner selection, contractual agreements,
transaction systems, production planning, business networks and policy support. This chain
management is more focused on explaining the supply chain structure model that has a large
share in increasing the income of small and medium fishers, and the transaction system
carried out between fishers and processors of fishery products as well as fishers and ship
owners or middlemen, as well as the form of partnership established between members of
the supply chain (Marimin and Maghfiroh 2010).
4. Chain resources
The resource chain in supply management explains what potentials support the
development of the supply chain. The resources studied include physical resources such as
the quality of layur for export purposes, technology such as fishing units involved in the
landing process and productivity of layur fishing, human resources and capital.
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5. Chain business process
The chain business process describes the processes that occur in the supply chain, the
parties involved, and the level of integrity of the processes in the supply chain.
6. Supply chain performance
The supply chain performance measurement uses an overall layur supply chain
performance assessment that has been modified from Maulida (2014). The assessment can
be seen in Table 2.
Dependency analysis
The opportunity for dependency is shown by the production relationship between the
partnering parties. The production relationship provides an opportunity and space to
develop, but the development that can be enjoyed is dependent. This means entering a
condition where the development is determined by the other party in terms of direction,
orientation, form and character. The situation of financial and technological dependence can
be considered as a mechanism created to control the production process. According to
Latifah (2010), the problems of initial capital, price fluctuations, production facilities,
selling prices of production products, competition between small and large fishermen, lack
of technology and difficulties in accessing the marke The broader resource problem is one
that is difficult for fishermen to reach.
The access level of fishermen is a condition where fishermen try to find and obtain the
resources needed during the production process. This access level can be measured through
three aspects described as follows (Rachmawati 2014):
a. Technology
The provision of production facilities is the need for tools and materials for the fisheries
production process. This provision consists of boat ownership, fishing gear, catch baskets,
bait facilities, fuel for fishing supplies and infrastructure facilities.
b. Financial
Capital is the cost or funds used by fishermen for all operational needs, whether for fishing
operations or daily needs and determining selling prices. This finance consists of borrowing
fishing capital, determining the selling price, and offering the selling price.
c. Market
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Alternative market is an opportunity to create a broader marketing process by the fishermen
for excess production. The market aspect consists of selling the catch, market determination,
market information and marketing solutions.
The variables of the three aspects were calculated using a Likert scale with weighting
between 1 and 5 (Table 4). Likert scale measurement analysis is a multi-item scale, which is
a scale used to measure positive attitudes towards objects by asking attitude questions or
statements which are then made conclusions (Sugiyono 2010).
SWOT Analysis
SWOT analysis is a way to systematically identify various factors in order to
formulate company strategy. This analysis is based on the logic of maximizing strengths and
opportunities, but at the same time minimizing weaknesses and threats (Rangkuti 2000).
SWOT analysis in this study was used to develop a strategy to improve the
competitiveness of layur fishermen by considering internal environmental factors of
strengths and weakneses as well as the external environment of opportunities and threats
faced by layur fishermen. The SWOT analysis compares internal factors of strengths and
weaknesses with external factors of opportunities and threats, so that from the analysis a
strategic decision can be made in improving the competitiveness of layur fishermen.
According to Nurani (2010) the process of strategy formulation includes 3 stages
That is:
1. Evaluation of internal and external factors.
2. Creation of internal, external, and SWOT matrices.
3. Decision making.
The data collection stage in SWOT analysis is used to determine the factors that are
strengths, weaknesses, opportunities and threats for the company which can be done by
interviewing the layur fishermen or layur fishery business concerned. After knowing the
internal and external factors, then making an internal and external matrix by giving weight
to each internal and external factor.
The preparation of the IFAS matrix is as follows:
1. Identify factors that are strengths and weaknesses in the strategy to improve the
competitiveness of layur fishermen through the development of a supply chain system.
2. The weighting of each factor, ranging from 1.00 (very important) to 0.00 (not important).
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The total weighted score for all factors is 1.00.
3. The rating for each factor is based on its influence on the problem. The rating value starts
from 4 (outstanding) to 1 (poor). The rating value for strengths is positive (the greater the
strength the greater the rating value given), while for weaknesses the opposite is done.
4. Next, the weight is multiplied by the rating, to determine the weighted score for each factor.
5. The sum of the weighted scores determines the internal conditions of the strategy to improve
the competitiveness of layur fishermen through the development of the supply chain system.
If the total score is ≥2.5, the internal conditions of the system have the strength to overcome
the situation.
The preparation of the EFAS matrix is as follows:
1. Identifying factors that are opportunities and threats to the strategy of increasing the
competitiveness of layur fishermen through the development of a supply chain system.
2. The weighting of each factor relates to its influence on the strategy, ranging from 1.00 (very
important) to 0.00 (not important). The sum score for all factors is 1.00.
3. The determination of the rating for each factor is based on its influence on the condition of
the design model for improving the competitiveness of layur fishermen through the
development of a supply chain system. The rating value starts from 4 (outstanding) to 1
(poor). The rating value for opportunities is positive (the greater the opportunity the greater
the rating value given), while for threats it is done the other way around.
4. Next, the weight is multiplied by the rating, to determine the weighted score for each factor.
5. The sum of the weighted scores determines the external conditions of the strategy to
improve the competitiveness of layur fishermen through the development of the supply
chain system. If the total score is ≥2.5, the system is able to respond to the external
conditions.
After the weighting of each factor, the strategies are ranked and connected, a SWOT
matrix is then created (Table 6). This matrix can clearly illustrate how the external
opportunities and threats faced by the company can be adjusted to its strengths and
weaknesses.
QSPM (Quantitative Strategic Planning Management) matrix
The quantitative strategic planning management (QSPM) matrix is a strategy matrix
that aims to determine the relative attractiveness of the various strategies that have been
selected, to determine which strategy is best to implement. According to Rangkuti (2000)
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the steps to make a QSPM matrix are:
1. List IFAS factors (strengths and weaknesses), and EFAS factors (opportunities and threats).
2. Giving weight to each internal and external factor.
3. Examine the matching matrices and identify alternative strategies that should be considered
for implementation.
4. Determine the attractive score (AS) as a number that shows the relative attractiveness of
each strategy to a particular alternative. If the EFAS and IFAS factors are related to the
policy being implemented, give an AS score that ranges from 1-4. Score 1 = not attractive, 2
= moderately attractive, 3 = attractive and 4 = very attractive.
5. Calculate the weigthed score (WS) value by multiplying the weight value of each internal
and external factor. The higher the WS value, the more attractive the alternative strategy is.
6. Calculating the total weigthed score (WS) aims to reveal the most attractive strategy in each
set of alternatives. The higher the WS value, the more attractive the strategy.
7. Conclude the best alternative strategy to be implemented by looking at the weigthed score
(WS).
General Situation of the Research Area
General condition
Pameungpeuk sub-district has an area of approximately 4,175.90 km², located at
107º40' - 107º45' East and 7º33' - 7º39' LS with boundaries in the north bordering Cisompet
sub-district, the east bordering Cibalong sub-district, the south bordering the Indian Ocean
and the west bordering Cikelet sub-district.
The Pameungpeuk area has a coastal fishing port called PPP Cilauteureun
Pameungpeuk Garut (Figure 3). PPP Cilauteureun is a fishing port located on the border of
Pameungpeuk Subdistrict and Cikelet Subdistrict. PPP Cilauteureun serves as an anchorage
for vessels sailing in deep waters, archipelagic waters, territorial sea, and Exclusive
Economic Zone (EEZ) with 10-30 GT. The ship's capacity is up to 300 GT or the equivalent
of 30 10 GT vessels. The dock length is between 100-150 meters with a depth of 2 meters
(Garut District Livestock, Fisheries, and Marine Service Office 2011).
Capture fisheries at PPP Cilauteureun Pameungpeuk Garut
The potential of fisheries in Cilauteureun PPP is very abundant. According to the West
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Java regional planning and development agency (Bappeda), Cilauteureun PPP has promising
marine fisheries potential with a potential of
19,436 tons per year. The types of catches landed at PPP Cilauteureun are dominated by
tuna, layur, grouper, snapper, and shrimp. However, the production of these fisheries has
decreased every year (Table 7). This is due to the uncertain season, so that many fishermen
do not go to sea and the lack of an operating fishing fleet. The most dominant production is
layur. The price of layur fish at PPP Cilauteureun reaches Rp. 35,000 per kg. The fishing
gear used in this capture fishery process is dominated by fishing rods with a total of 968 and
the rest by net gear with a total of 628.
The peak season of capture fisheries in PPP Cilateureun occurs during June-September
(east season). In this season capture fisheries at PPP Cilauteureun are very profitable for
fishermen, but during the lean season fishermen at PPP Cilauteureun are very disadvantaged,
because the production of catches becomes small due to the western season characterized by
frequent rains and storms.
Condition of fishermen at PPP Cilauteureun Pameungpeuk Garut
Capture fisheries activities in coastal Cilauteureun have great potential to be
developed. This is supported by the existence of a fishing port that has a class as a coastal
fishing port (PPP) or can be called the Cilauteureun PPP and competent human resources.
According to the Department of Livestock, Fisheries, and Marine (Disnakkanla) of Garut
Regency in 2009, PPP Cilauteureun has the largest composition of fishermen, covering 42%
of the total fishermen in Garut Regency. The remaining 58% of fishermen are spread across
the landing harbors of Cijeruk, Cimari Muara, and Rancabuaya. According to the
Department of Fisheries and Marine Affairs of Garut Regency (2015), the number of
fishermen in Cilauteureun PPP increases every year (Table 14), this encourages the
development of human resources, especially competent fishermen. But the education
available to Cilauteureun fishermen is still minimal, on average Cilauteureun fishermen have
elementary school education around 51.51%.
Supply Chain Management:
Supply Chain Management is a series of approaches applied to integrate suppliers,
entrepreneurs, warehouses and other storage places efficiently. The resulting products can be
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distributed with the right quantity, place, and time to minimize costs, and satisfy customers
(Marimin and Maghfiroh 2010). The results of a study that examined the supply chain
system at PPP Cilauteureun using a modified supply chain framework by Vost (2006) in
Marimin and Maghfiroh (2010), the results consisted of:
1. Chain Structure:
The structure of the layur supply chain describes several members of the supply chain
and their roles in the layur supply chain. In general, the supply chain actors in the
Cilauteureun PPP consist of layur fishers, baskets, middlemen, layur fish entrepreneurs (CV
Duta), and consumers (Figure 4). According to Nurani et al. (2013) layur fish catches are
obtained from seine fishermen, bagan fishermen, longline fishermen, and gillnet fishermen.
Layur fishers catch fish using fishing gear in the form of nets and layur fishing rods.
Fishermen carry out loading and unloading activities directly on the spot assisted by the
stonemason. Then the stonemason sells the catch to the middlemen. Middlemen sort the
catch for resale to companies and small baskets. The company in question is CV Duta. This
company supplies layur products from several middlemen and fishermen. These products are
then distributed to consumers for consumption. Some baskets sell their catches to local
consumers.
1. Fisherman
According to Law No. 31 Year 2004 on fisheries, the definition of a fisherman is a person
whose livelihood is fishing. Fishermen are distinguished based on the ownership of assets or
fishing gear and the involvement of other people in the fishing business. This stratification
causes fishermen to be divided into two groups, namely juragan or owner fishermen, and
labor fishermen (Maulida 2014). According to Satria (2002), juragan or owner fishermen are
people who own fishing facilities such as boats, and other fishing gear, while labor
fishermen are people who work as laborers in fishing activities at sea, meaning that they are
only workers and do not have assets in fishing.
The number of fishermen in 2015 at the Cilauteureun PPP is around 2,302 people.
These fishermen consist of 214 juragan or owner fishermen, 1,535 labor fishermen, 65
ornamental fish fishermen and 488 seaweed fishermen. Labor fishermen are the main actors
in the running of a supply chain, because fishermen are fish suppliers to middlemen or
companies. Fish suppliers at PPP Cilauteureun come from Rancabuaya, Cidaun (Cianjur),
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Sancang, and Cimari.
The layur fishing process is carried out using fishing rods and sirang nets. Fishermen
who use fishing rods with the type of hand line, with the skills possessed the type of hand
line is modified into a longline, where the fishing line is installed around 50-100 fishing
lines, and with a sirang net measuring 2.5-3 inches, and equipped with tools such as GPS.
The use of modern fishing gear is very helpful for fishermen in producing good catches.
Fishing is carried out around the coast only about 5 miles from the shoreline, besides that the
fishing area is determined based on reasoning and experience and high motivation to go to
sea. This is done because the boats used are katir or jukung boats with outboard engines with
a power of 15 PK, thus minimizing accidents. Operation time is done in the morning and at
night. After getting the catch, fishermen immediately sell the catch to the middlemen
without sorting it first.
2. Bakul
The middlemen in this supply chain process serve as buyers of the catch on a small scale.
Bakul in Cilauteureun PPP only buys fish from middlemen collectors, not directly from
fishermen. They sell fish at the port and around Garut. They only have small capital, so the
ability to buy fish in large quantities cannot be fulfilled.
3. Middlemen
Middlemen in the supply chain process at PPP Cilauteureun are in charge of buying fish
caught directly from fishermen. The price offered by the middlemen is the standard price.
The catch of layur is bought by the middlemen at around Rp. 35,000 per kg. This price is
very minimal compared to the price of layur sold in other ports, so the increase in
middlemen is increasing and the income of fishermen is low. The catch from fishermen is
sorted and then distributed to companies in Jakarta, Bandung, Tegal and Cilacap as well as
to CV Duta companies around the port. Middlemen sell the price of layur fish to companies
at around Rp. 50,000 to Rp. 60,000 per kg. In addition to the company, middlemen also sell
layur to small collectors around the port. During the peak season, the average profit of the
middlemen reaches Rp.
75,000,000 in one month with each middleman having up to 25 vessels with an average
daily catch of 2-3 quintals per vessel, but in the lean season profits are very small reaching
Rp. 15,000,000 because the average catch reaches 1 quintal per vessel.
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4. CV Duta Company
The CV Duta company in the supply chain structure serves as a distributor or distributor
of layur fish to consumers. The CV Duta company was established in 2012, with the
existence of this company, the selling price of the layur fish quite an increase reaching Rp.
35,000/kg. Before distribution, the company sorted the size of the layur for export. After
that, packing is done in boxes, with one box weighing up to 10 kg. After packing, the layur
is put into cool storage to be frozen, because the export market requested is in frozen form
(Figure 5), in addition to maintaining the freshness of the fish.
5. Consumer
Consumers in the supply chain structure of layur fish serve as buyers or connoisseurs of
layur fishery products and are the last actors in the supply chain. Consumers in the supply
chain system at PPP Cilauteureun are countries that import layur such as Japan, Korea, and
China. According to Nurani et al. (2013) layur fish is an export commodity, because it has a
good taste, chewy meat texture, not too fishy, not oily and the meat is easy to release, so it is
much favored by exporting countries such as China, Korea, and Japan. The regional scale is
Jakarta, Bandung, Tegal, and Cilacap.
2. Chain Purpose
Supply chain objectives explain the goals or objectives of the supply chain in a
product, and the market's desire for the product produced. The supply chain objectives that
occur at PPP Cilauteureun for the catch of layur are domestic and export. The caught kites
are sorted based on size and quality. The kites are sorted by the middlemen and CV Duta
company to be sent to domestic and export companies. Kites are distributed by CV Duta and
middlemen to Jakarta, Tegal, China and Korea. The processing of the catch of layur at PPP
Cilauteureun is only made in the form of frozen and not processed in the form of processed
food such as salted fish. However, in the market survey process, the middlemen and the CV
Duta company do not conduct market surveys to find out what products consumers want.
Middlemen and CV Duta companies only send frozen products, which are then exported by
export companies in Jakarta and Tegal to China, Japan and Korea.
3. Chain Resources
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Chain resources in the supply chain process of layur fish at PPP Cilauteureun consist
of physical resources, technological resources, human resources and capital resources.
According to Nurani et al. (2013) fish resources are the most important factor in ensuring
supply availability, and will have an impact on all aspects of the supply chain. Physical
resources in the layur supply chain are mostly obtained from government assistance.
However, this assistance creates social jealousy among fishermen, which is the weakness of
fishermen at PPP Cilauteureun. Physical resources consist of fishing gear used in the fishing
process in the form of rampus nets measuring 2.5-3 inches, and layur fishing gear numbered
9 and 10 with the type of longline and longline which has a branch of 50-100 fishing lines.
The vessels used in the fishing process are katir or jukung boats with an engine capacity of
15 PK, but there are also those who use boats with a size of 5-10 GT.
The catch obtained each operation reaches 55 kg in each cool box, and each operation
gets a catch of 3 cool boxes. This is the strength of Cilauteureun layur fishermen who can
produce good catches. The catch is caught by a 15 PK boat. The large number of catches
cannot be separated from the condition of the layur fishery at PPP Cilauteureun, which is
still abundant and has not been optimally utilized. The success of the layur supply chain
system at PPP Cilauteureun cannot be separated from the facilities and infrastructure that are
quite supportive, although these facilities and infrastructure still have shortcomings. The
facilities and infrastructure in this activity consist of fishing boats, trucks carrying ice blocks
used to cool the catch of layur while on board, and trucks carrying the catch of layur that has
been equipped with coolers to be taken to Jakarta and Bandung, then exported to China,
Japan and Korea.
The technological resources used in the supply chain process of layur fish at PPP
Cilauteureun consist of handling the catch using crushed ice for even cooling. There is no
technology in the process of increasing the productivity of the catch, so the catch is not very
good and has not been able to apply the process of handling the catch which is the weakness
of Cilauteureun fishermen. In addition, there is no technology in the process of landing fish,
so the fish that has been caught only uses a cool box as a place for the catch and then is
directly handled by being carried by the stonecutter to be sold to the middleman.
Human resources at PPP Cilauteureun consist of fishermen and middlemen. The
number of layur fishermen in PPP Cilauteureun is around 300 and some fishermen catch
tuna and other types of fish. Cilauteureun fishermen have concern in developing fisheries, so
they try to optimize fish resources properly. There are 10 middlemen in Cilauteureun PPP.
The total number of middlemen who have their own fishermen or boats is 2 middlemen. The
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middlemen are Hj Nining and Mas Untung. The relationship that exists between fishermen
and middlemen is in the form of a cooperative relationship, fishermen sell the catch to the
middlemen at a price determined by the middlemen. This form of cooperation will continue
to be carried out, because of the many debts of fishermen to middlemen, so this form of
cooperation is very profitable for middlemen, so that fishermen's income is low.
Capital resources in Culauteureun PPP consist of capital obtained by fishermen from
middlemen and ship owners. Fishermen obtain capital by borrowing directly from
middlemen and ship owners. When borrowing from a middleman, the catch must be sold to
the middleman who has been asked for capital, at a price determined by the middleman.
Middlemen in their activities, provide capital and buy catches from fishermen, while for
borrowing to boat owners, the income system is in the form of profit sharing, where the boat
owner gets a 40% share and the cultivator fishermen are 60%. The number of fishermen who
borrow capital from middlemen makes the level of dependence of Cilauteureun fishermen
on middlemen very high. This is the weakness of Cilauteureun kite fishermen.
4. Chain Management
The supply chain management of layur fish at PPP Cilauteureun consists of partner
selection and transaction/payment system. The partner selection system, in the supply chain
system of layur fish at PPP Cilauteureun, aims to establish cooperation between the two
parties who both benefit. These parties include fishermen (suppliers), middlemen (retailers)
and manufacturers (companies). The most dominant party in this supply chain system is the
fisherman, because this party is tasked with being a supplier, but the price is dominated by
middlemen. The supplier fishermen come from Rancabuaya, Cidaun, Cilauteureun, Cimari,
and Sancang. The category of fishermen chosen is fishermen who already have skills in
operating fishing gear or nets, so they are able to produce layur fish well, besides that they
are honest and have layur fish raw materials.
The form of cooperation is in the form of a buying and selling system and is done
orally and not in writing. According to Nurani et al. (2013) work agreements or forms of
cooperation that exist between fishermen and ship owners are usually based on trust and are
informal. The ship owner here is like a middleman who owns the ship and the owner
fishermen. The form of cooperation is that fishermen sell fish to middlemen and middlemen
sell fish to baskets and companies. The form of cooperation is in the form of providing
capital to the recipient of capital, then the recipient of capital must sell the catch to the capital
provider, so that this form of cooperation is a form of tied cooperation. The goal is that
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fishermen as recipients of capital continue to sell catches to middlemen as capital providers.
The transaction or payment system is a cash system. This is done because the form of
cooperation is carried out with a buying and selling system on the spot.
5. Chain Business Process
Business processes between supply chain members explain how business mechanisms
occur in the supply chain (Marimin and Maghfiroh 2010), so it is important to know about
the relationships that occur between them, as well as their influence on business processes.
Business relationships in the layur fish chain system are reviewed in terms of the supply
chain cycle and the pull push process (Marimin and Maghfiroh 2010). In the cycle review,
the supply chain process is divided into a series of cycles. As for the pull process, the
process is carried out to respond to consumer orders, in other words, sellers can reduce
product inventory costs and reduce costs due to the accumulation of goods. As for the push
process, the process is carried out to anticipate upcoming consumer orders (Marimin and
Maghfiroh 2010).
The relationship between supply chain actors in business activities is a relationship
that brings together suppliers, distributors, retailers, companies, retailers to end consumers,
in the flow of a supply chain to be able to produce a layur product and distribute products
with the right amount, right time, good quality, and with efficient costs to meet needs
(Maulida 2014). The business relationship between the players of the layur fish supply chain
is a well-established business relationship between chain actors (Maulida 2014). This
relationship can occur, because of the process of demand and supply from producers to
consumers (Nurani et al 2013). This good relationship occurs because supply chain actors
can already recognize and trust each other. The business relationships that occur in the
supply chain at PPP Cilauteureun can be seen in Figure 6.
The relationship between supply chain actors at PPP Cilauteureun (Figure 6), namely
fishermen, middlemen, baskets, companies, and end consumers, has a close relationship.
The supply chain actors, that fishermen apply the push process with the aim of supplying
goods or products as well as middlemen to companies, middlemen to baskets and companies
to consumers both apply the push system with the aim of delivering goods quickly to
consumers, because the stock of goods is available.
In addition to the relationship between supply chain actors, in the business process
there is a product flow pattern. Supply chain management explains that the product flow
pattern is the flow of goods starting from production, distribution, until the final product
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Middlemen sort the catch by size and quality for
export and local use.
The catch of layur is sold by fishermen to
middlemen in fresh form.
The company distributes layur products in frozen
form to export consumers
The company sorts the catch from middlemen based on size for
export scale and freezes and packs with boxes with a capacity of
10 kg / box.
must reach the hands of consumers (Marimin and Maghfiroh 2010). The export product flow
pattern begins with fishermen selling their catches to middlemen in fresh form, then the
middlemen sort the catches for export and local scales and put them in boxes filled with ice
water, with a capacity of up to 10 tons 50 quintals. Furthermore, it is sent to companies, one
of which is a company around the port. The company is CV Duta. This company does size-
based sorting for export in the form of frozen layur products. The products are packed in
boxes with a capacity of up to 10 kg/box (Figure 7).
According to Maulida (2014), information is an important component in achieving supply
chain goals. Good information between each supply chain actor can achieve good and
transparent relationships, so as to increase trust and commitment in establishing cooperative
relationships.
The information flow of the layur supply chain at PPP Cilauteureun consists of market
information. Market information is obtained from middlemen and baskets as well as
consumers. The importance of market information is because this information can see which
products consumers want. Market information obtained from Middlemen can be utilized by
companies to make products that consumers want.
The information flow of the Cilauteureun layur supply chain, which is intertwined
between supply chain actors, provides information to each other, and in general the flow of
information has been running well (Figure 9). The flow of information starts from the
fishermen informing the middlemen about the catch of layur, then the middlemen provide
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information to the company, and the company gets information from consumers about the
products that the market currently wants.
6. Chain Performance
Chain performance in a supply chain can determine how big a chain is in the supply
chain. According to Maulida (2014), the measurement of supply chain performance can be
measured by qualitative assessment accompanied by a check list method. Through the check
list table, it can be seen from what parts are good enough and what must be improved.
Based on Table 9 of the supply chain performance assessment at PPP Cilauteureun
which has been modified from Maulida (2014), that the supply chain performance at PPP
Cilauteureun with 17 criteria, it is known that there are 12 existing and running
performances with a percentage of 70.59%, 2 non-existing performances with a percentage
of 11.76% and 3 in-process performances with a percentage of 17.65% (Table 10). In
general, the supply chain performance activities at PPP Cilauteureun are quite good, but not
optimal. According to Maulida (2014), performance criteria that have a percentage value of
more than 62.5% are categorized as quite good (Table 3). The performance of the supply
chain at PPP Cilauteureun is not yet optimal, so it is necessary to improve the performance
of the layur fish chain at PPP Cilauteureun so that the layur fish supply chain system runs
well. According to Maulida (2014) to improve the criteria in a chain performance, the
criteria in the check list table must be increased to 100%, so that the results will be optimal.
Fishermen's Dependence on Middlemen:
The problem of fisheries activities is a very complex activity, because in it there are
influential factors that are interrelated (Setiawan et al. 2007). Problems that often arise are
problems regarding the relationship between fishermen and middlemen. The problem arises
because of the difficulty of fishermen in fulfilling capital, unfriendly seasons, and profit-
sharing systems that make minimal income, thus making labor fishermen fall into a circle of
poverty. The relationship between the involvement of middlemen in activities related to
catches at fishing ports/fish landing bases (PP/PPI) has long been going on and occurs in
almost all regions of Indonesia. Activities related to catches at PP/PPI have one of the main
direct actors, namely fishermen. On the one hand, fishermen who are tied to middlemen find
it almost impossible to manage their catch.
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on the other hand, for many things related to money, fishers also need middlemen (Pane et al
2012).
Fishermen at PPP Cilauteureun have a problem regarding dependence on middlemen
which is very high. This dependency occurs because fishermen often receive loan assistance
from middlemen in the form of money and infrastructure for fishing operations, so
fishermen are forced to sell their catches to middlemen at prices determined by the
middlemen. As a result, fishermen have low incomes and lack access to market information.
Based on the description above, to find out how much the level of dependence of
fishermen on middlemen is the most dominant, it is seen with three aspects, namely
technological, financial and market aspects. The three aspects are assessed based on daily
activities in conducting fishing operations including:
Fishermen's Dependence on Technology:
Dependence in the technological aspect consists of the provision of advice and
infrastructure needed by a fisherman in carrying out fishing operations. Layur fishers have
different dependencies on middlemen in terms of technology
The level of dependence of layur fishermen at PPP Cilauteureun on middlemen in the
technological aspect of seven question variables (Table 11), with a sample of 30 fishermen,
it is known that boat ownership has a total score of 76 with a percentage score of 50.67%, so
it is categorized as quite dependent. Ownership of fishing gear has a total score of 40 with a
percentage score of 26.67% categorized as not dependent. Ease of getting bait has a total
score of 124 with a score percentage of 82.67% categorized as highly dependent. Ease of
fuel has a total score of 68 with a score percentage of 45.33% categorized as moderately
dependent. The ease of catching baskets has a total score of 150 with a score percentage of
100% categorized as very dependent. The ease of fishing supplies has a total score of 44
with a score percentage of 29.33% categorized as not dependent. The ease of infrastructure
facilities has a total score of 144 with a score percentage of 96% categorized as highly
dependent. The percentage level of dependence is in accordance with the table below.
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5. The higher the number of scores, the higher the percentage score (Riduwan 2011).
The results of the seven variables, that the most dominant is from the ownership of
catch baskets, the ease of getting bait, and the ease of providing advice and infrastructure.
The fulfillment of needs for these three variables, Cilauteureun PPP layur fishermen are
always in contact with middlemen, so their dependence is very high, and the variable that is
entirely dependent on middlemen is the ownership of catch baskets. The reason is because
all fishermen at PPP Cilauteureun do not own a catch basket, so the basket for the catch is
borrowed from middlemen. Variables for ownership of fishing gear and ease of supplies,
Cilauteureun PPP layur fishermen do not depend on middlemen, because for supplies and
fishing gear almost all fishermen have them. The variable for boat ownership, most of the
kite fishermen at PPP Cilauteureun use boats from middlemen for fishing, so that fishermen
are only laborers in charge of catching and selling catches. Similar to fuel, most fishermen
obtain fuel from middlemen, and some fishermen buy their own fuel. Fishermen consider
that buying their own fuel is cheaper than buying from middlemen, so most Cilauteureun
PPP layur fishermen on both variables are categorized as quite dependent on middlemen.
Dependence of Fishermen in Financial Aspects
The dependence of fishermen on middlemen in the financial aspect includes capital,
costs, and prices used in fishing operations. The dependency of Cilauteureun PPP fishermen
in determining the capital and cost aspects is divided into five variables.
Dependence of layur fishermen in PPP Cilauteureun in financial aspect (Table 12) has
different dependence in each variable. These variables consist of the initial capital for
fishing with a total score of 68 and a score percentage of 45.33%, borrowing capital from
middlemen with a total score of 146 and a score percentage of 97.33%, providing capital
that always helps with a total score of 120 and a percentage of 80%, determining prices by
middlemen with a total score of 150 and a score percentage of 100%, and purchasing high
prices with good quality has a total score of 150 with a percentage of 100%.
The results of the five variables above, which determine the level of dependence of
layur fishermen on middlemen, according to Riduwan (2011) can be expressed with a
percentage criterion value ranging from 0-100% (Table 5), so that from the capital variable,
the fishermen's dependence on middlemen can be expressed with a percentage value ranging
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from 0-100%.
The initial fishing capital is categorized as quite dependent, meaning that some
fishermen at PPP Cilauteureun are quite dependent on middlemen for their initial fishing
capital. The variables of borrowing capital, providing capital that always helps, determining
the selling price by middlemen and offering high prices for good quality fish, are included in
the highly dependent criteria, so that layur fishermen at PPP Cilauteureun can be categorized
as highly dependent on middlemen. Dependence of kite fishermen at PPP Cilauteureun on
the financial aspect occurs because fishermen are always assisted by middlemen in terms of
costs. When fishermen will conduct fishing operations without capital, f i s h e r m e n
immediately borrow the capital from middlemen, even some fishermen who do not have
boats and intend to have boats can buy from middlemen with a credit system. Payment for
the boat is obtained from the catch sold to the middleman, which is called TB, a credit term
used by Cilauteureun fishermen. During the lean season, t h e catch decreases, so to
fulfill their needs, Cilauteureun layur fishermen often borrow money from middlemen, so
with a lot of debt to middlemen, the relationship between middlemen and fishermen is very
different fishermen will become stronger and their dependence will become stronger.
Dependence of Fishermen on Market Aspects
The dependency of layur fishermen in Cilauteureun PPP in the market aspect includes
catch marketing and market information. This market aspect analysis consists of five
variables (Table 13). These variables determine the level of dependence of kite fishermen in
Cilauteureun PPP on middlemen.
The level of dependence of layur fishermen on middlemen at PPP Cilauteureun in the
market aspect has different dependencies in each variable. Market aspect variables consist of
variables in selling catches having a total score of 150 with a score percentage of 100%,
variables determining local markets by middlemen having a total score of 113 with a score
percentage of 75.33%, variables determining regional markets having a total score of 115
with a score percentage of 76.67%, variables of market information from middlemen having
a total score of 132 with a percentage of 88%, and variables of solutions to obstacles in
marketing having a total score of 121 with a percentage of 80.67%.
The results obtained from the five variables can be determined by the level of
dependency using the percentage score which can be seen in Table 5. The percentage score
ranges from 0-100% with various criteria (Riduwan 2011). The result is that the variables to
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sell the catch to middlemen, market information from middlemen, solutions to obstacles in
marketing the catch to middlemen, and market information from middlemen are all
dependent on each other.
It can be concluded that layur fishermen at PPP Cilauteureun have a high
dependence on middlemen. This happens because fishermen are forced to sell their catches
to middlemen, because every time they conduct a fishing operation, the initial capital comes
from middlemen. According to Mahdiana et al. (2012) the dependence of fishermen on
middlemen causes fishermen's income to not be maximized, because the selling price is
determined by one party. In addition, the amount of debt of fishermen to middlemen is due
to the fact that during the lean season layur fishermen borrow money from middlemen.
Lack of market information means that market information can only be obtained from
middlemen (Listianingsih 2008). This can be proven in the determination of local and
regional markets included in the dependent criteria. The local and regional market
information obtained comes from middlemen, so that when fishermen want to sell fish, they
can be sold in local or regional markets.
Strategies for Increasing the Competitiveness of Layur Fishermen
Capture fisheries activities in Cilauteureun PPP have great potential to be developed.
This is supported by the presence of fish resources and human resources that inhabit.
Determining the success of a region's development, one of the factors is human resources. If
an area has human resources that inhabit then the area will develop well. Human resources
in Cilauteureun PPP are good enough for capture fisheries activities. This is supported
because most of the residents of Cilauteureun PPP work as fishermen (Table 14).
The increasing number of fishermen in PPP Cilauteureun, the higher the level of
competitiveness among fishermen. Competitiveness relates to how an organization's
effectiveness in competition creates new things to face future challenges (Munandar 2011).
The amount of competition between fishermen can make a Cilauteureun coastal fishing port
more developed, because there are many competitive human resources. Increasing
competitiveness among layur fishermen in Cilauteureun PPP requires a strategy. The
strategy carried out is to use SWOT analysis to determine internal factors (strengths and
weaknesses), and to determine the competitiveness of layur fishermen in Cilauteureun PPP
external factors (opportunities and threats). Internal factors (IFAS) in determining strategies
to improve the competitiveness of layur fishermen through the development of a supply
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chain system at PPP Cilauteureun can be seen in Table 15.
Internal factors (IFAS) in determining strategies to improve the competitiveness of
layur fishermen at PPP Cilauteureun (Table 15), from the strength factors that have the
highest weight is the factor of having skills in fishing with a weight score of 0.56. This
factor is a strength possessed by layur fishermen, who are always skilled in conducting fishing
operations by designing layur fishing rods into longlines with the same catch for layur fish,
so as to produce good quality catches. According to Retnowati et al. (2014) the skills that
exist in fishermen are due to the environmental situation inherent in these fishermen.
The weakness factor, with the highest weight value of 0.26 is minimal education. This
factor is the most dominant factor of kite fishermen in PPP Cilauteureun. Some fishermen,
their education only reaches elementary school education, because fishermen argue that
education is not the main thing in carrying out fishing activities, but what is prioritized is the
skill to obtain maximum catch. As a result of several strength and weakness factors, a total
score between strengths and weaknesses of 2.73 can be obtained. This value is above the
average value of 2.5 so that the internal conditions that exist in layur fishermen at PPP
Cilauteureun are able to encourage increased competitiveness of layur fishermen through the
development of a supply chain system.
After analyzing internal factors (IFAS), then analyze external factors (EFAS), namely
opportunities and threats that exist in this layur fisherman at PPP Cilauteureun. External
factors for improving the competitiveness of layur fishermen through the development of a
supply chain system can be seen in Table 16.
Strategies to improve the competitiveness of layur fishermen through the
development of a supply chain system at PPP Cilauteureun (Table 18), obtained by linking
internal factors (strengths and weaknesses), with external factors (opportunities and threats).
The linkage between the strength factor (S), with opportunities (O) obtained 2 alternative
strategies that can be determined, to increase the competitiveness of fishermen, namely
developing layur fisheries optimally, and developing layur fisheries markets. Alternative
WO strategies (weaknesses and opportunities) obtained 2 alternative strategies, namely
improving the quality of human resource education, and increasing cooperation between
fishermen. Alternative ST strategies (strengths and threats) have alternative strategies,
namely the determination of fishing regulations, and determining the right DPI, and alternative
WT strategies (weaknesses and threats), have alternative strategies for fostering and
developing fishermen's entrepreneurial groups and socializing the development of catch
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technology.
QSPM (Quantitative Strategic Planning Management) matrix
This matrix is used to determine the best strategy priorities in improving the
competitiveness of layur fishermen through supply chain development at PPP Cilauteureun.
The QSPM matrix can be seen in Table 19.
The results of strategy prioritization using the QSPM matrix (Table 19) obtained, that
the most dominant strategy applied is the strategy of developing layur fisheries optimally
which has a total score of 6.18. This alternative strategy can be applied, because the
potential of layur fishery resources at PPP Cilauteureun has not been optimally utilized.
According to Nurani et al. (2013) fish resources are an important factor to ensure supply
availability and will have an impact on all aspects of the supply chain. The development of
this fishery can be done by optimizing catches, by increasing the fishing fleet to take
advantage of the demand for layur fish and the very high export potential of layur fisheries,
adding adequate facilities and infrastructure in the fisheries marketing process, the function
of the fish auction site, so that the development of the layur fish supply chain can develop
and the competitiveness of fishermen will increase. The strategy can provide an increase in
fishermen's income, because the company can buy catches directly from fishermen through
fish auction sites without going through middlemen and prices will be in the control of
fishermen.
The kite fishery in Cilauteureun PPP is still dominated by middlemen, so the
marketing system is less than optimal and the price of kite fish in the export market has not
been enjoyed by fishermen. In general, an increase in the export price of kite fish can
encourage the economy of fishermen to be better, which results in increased competitiveness
of fishermen (Fitri 2010). Efforts made to improve the competitiveness of layur fishermen
through the development of a supply chain system can be done by developing a layur
fisheries market. The government must take part in the development of the layur fishery
market, so that it can provide assistance regarding information on the layur fishery export
market. This can be done by forming fishermen cooperatives, through cooperation with
parties involved in exporting kite fish and conducting market survey activities regarding kite
fishery products that consumers want. These activities encourage supply chain actors to
receive appropriate prices, thereby increasing the competitiveness of layur fishermen by not
depending on middlemen.
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CONCLUSIONS:
Based on the results of the analysis conducted in this study regarding strategies to
improve the competitiveness of layur fishermen through the development of a supply chain
system at PPP Cilauteureun Pameungpeuk Garut, the following conclusions can be made:
1. In general, the supply chain performance at PPP Cilauteureun is quite good. The players in
the supply chain of layur fish at PPP Cilauteureun consist of layur fish fishermen as layur
fish suppliers, middlemen and baskets as retailers, companies as distributors, and consumers
as product users such as China, Korea and Japan.
2. Fishermen at PPP Cilauteureun are almost entirely dependent on middlemen. This
dependence can be seen in the aspects of technology, finance, and markets, some of which
have criteria that are highly dependent on middlemen.
3. The strategy in improving the competitiveness of layur fishermen through the development
of the supply chain system at PPP Cilauteureun which has the priority to be implemented in
improving the competitiveness of layur fishermen is the optimal development of layur
fisheries with a total score of 6.18 and is ranked 1.
