A Policy Framework to Support Household-Based Snack Food Industry in East Sumba Regency for Poverty Alleviation

Abstract

Objective - This research aims to develop a policy framework to support household-based snack food industry in the East Sumba regency for poverty alleviation. Methodology/Technique - A qualitative method is applied to enable exploration. A benchmarking analysis with the snack food industry in Garut, West Java, also is conducted to gain insights of the success factors and challenges faced by the industry there. Findings - Most informants say that the East Sumba regency has a high production of food crops and fruit; thus, it has potential to develop a household-based food industry to improve the local economy, i.e., a food and snacks industry based on raw materials such as maize, cassava, sweet potatoes, peanuts, and bananas. The regency also has a long coastline; therefore, coconut, fish, and seaweed-based food industries also are a potential for development in the area. Novelty - This study findings propose a policy framework for poverty alleviation through the creation of new entrepreneurs producing local snack foods. The creation of new entrepreneurs will increase employment and it should be done by the local government must implement policies that develop the management skills in four functional management aspects, which must be supported by specific policies in community leadership, community culture and mindset, public–private partnerships, government support, and infrastructures. Type of Paper: Empirical Keywords: Poverty Alleviation; Household-Based Industry; Food industry; East Sumba; Indonesia. JEL Classification: L26, P46.