Analysis of the Constraints to Banana Industry Development in Indonesia Using the Supply Chain Concept

Abstract

Banana is the highest production fruit in Indonesia. The fruit is sold mostly on the domestic market. A supply-chain approach was used to analyse constraints to banana industry development in Indonesia, with a view to determining research and development (R&D) priorities. Two supply chains were characterised through participatory interviews and discussions involving the research team and the respective participants in the chains. The first supply chain was a traditional banana supply chain from the Cikalong subdistrict, Cianjur district, West Java, supplying mainly the traditional markets in Bandung and Jakarta. The second supply chain was that of ‘company X’ supplying bananas to supermarkets in the Jakarta, Bogor, Tangerang and Bekasi metro areas. The chain characteristics were mapped to describe the flow of product, funds and information.
SWOT analysis was performed to identify areas for improvement in the chains. The suggested improvements were compiled and classified under the six principles of supply-chain management (SCM): knowing customers and consumers; creating and sharing value; getting the product right; logistics and distribution; information and communication; and effective relationships. The research team and representatives of the supply chain selected the five most-important issues for both supply chains. The results indicated that the most important constraint in both supply chains was getting the product right. This indicates that the current emphasis of research and development on improving on-farm production and postharvest practices should continue. However, there are other factors that need to be addressed, such as getting adequate supply of the right product, and making sure that improvements do not impair sociological and other aspects of the chain.