Article

Integrated Agribusiness-Based Area Development (A Policy Framework for Value-Chain Competitiveness)

  • Joko Tri Harjanto

International Journal of Agricultural Social Economics and Rural Development (Ijaserd), Vol. 6 No. 2 (2026), hlm. 73–83

Abstrak

Agricultural area development is constrained by fragmented interventions across production, processing, marketing, farmer institutions, finance, human resources, technology, infrastructure, and governance. This study diagnoses the policy coordination problem and proposes an integrated agribusiness-based policy framework to strengthen value-chain competitiveness. The study used qualitative policy analysis and reviewed regulations, planning documents, official statistics, scientific literature, and relevant empirical studies. The analysis comprised policy problem identification, root-cause diagnosis, policy-gap analysis, formulation of policy alternatives, qualitative assessment, and development of an implementation framework. The analysis found that many policy instruments are already available, but their implementation remains fragmented because coordination among sectors and actors at the area level is weak. The analysis considered three policy alternatives: commodity-based area development, strengthening farmer economic institutions, and integrated agribusiness-based area development. The comparison indicated that integrated agribusiness-based area development had a qualitative fit with the diagnosed policy problem because it connects production, processing, markets, farmer institutions, services, and governance around area-specific value-chain bottlenecks. This preference is based on a qualitative policy-fit assessment rather than expert scoring, experimental evidence, or causal estimation. The proposed framework is operationalized through area diagnosis, value-chain mapping, cross-sector action planning, governance and role allocation, market partnerships and value creation, and results-based monitoring and evaluation. The framework is conceptual and has not yet been empirically validated; therefore, applying it requires adaptation to local commodities, institutional capacity, and market conditions, with stakeholder or field validation before wider local use. Local governments and sectoral agencies can use the framework to align interventions around shared area outcomes.

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