Analysis cluster of palm processing industry in Indonesia

Abstract

The purposes of this research are: 1) to analyze profile of palm processing cluster from upstream up to downstream in various regions in Indonesia; 2) to analyze strength, weakness, threats, and opportunity in palm processing industry, moreover to identify the role of existing various institutions in palm processing industry cluster in steering palm processing industry development; 3) to formulate the policy of palm processing cluster to encourage agricultural development. Data used in this research is secondary data that obtained from related institutions. Data is analyzed descriptively and quantitatively, utilizing frequency of distribution’s table, crosstable, and SWOT analysis. The result of this research concludes that Indonesia has big potential to palm processing industry, particularly in upstream industry. This thing can be seen from wide of area and palm production, which are owned. From the region side, majority wide of the area and palm production in Sumatera, from wide of area’s viewpoint is approximately 63.26% in Sumatera region, from production’s viewpoint is approximately 68.71%. In the meantime, from the downstream product, palm-processing industry in Indonesia is still limited. Less or more 100 products derived from palm in Indonesia, are only able producing 23 kinds of derived products, meanwhile in Malaysia almost reaching out 70 varieties. Keywords: Palm processing industry, cluster, SWOT analysis INTRODUCTION Until this time palm is still one of plantation crops, which is notable for national economy, especially as income source, availability of job vacancy, and contributing foreign exchange. In some regions in Indonesia, palm constitutes one of main activities that expected as stimulus of economy of those regions. This condition cannot be separated from the ability of Indonesia, from the availability of landside, as well as agro-climatology that will enable constantly evolved of palm (Ministry of Economy, 2011). To encourage the development of palm from upstream up to the downstream, then the government builds palm processing industry cluster in both Sumatera and Kalimantan. Of the four industries built, three of them are in Sungai Mangkei Sumatera Utara, Dumai, and Kuala Enok Riau. As a cluster, need to group of enterprises from upstream up to downstream which is related each other so require collaboration or partnership among of the enterprises in a cluster. However, many researches to industry cluster can be concluded there is still weak cooperation or partnership from the existing of various parts in the cluster (Djamhari, 2006 and Nugroho, 2008). Utilizing assumption as stated in Tona et al (2013) concludes that the partnership among of enterprises group in palm processing industry cluster has not effective yet, ranging from upstream up to downstream in Jambi