Abstract

The purpose of this research is to propose an inclusive agribusiness model that can improve the economic conditions of farmers in Indonesia, especially in West Java. The researchers used multiple cases for investigating the business model for different commodities in the West Java area. For each case, the data were collected from farmers' focus groups, interviews with stakeholders in each commodity, and through obtaining secondary data. It was discovered that farmers are constrained by various problems concerning lack of tangible and intangible resources. As the main agribusiness actor, farmers also have low welfare. To improve farmer's welfare, a Purpose-Driven Inclusive Agribusiness Ecosystem (PDIAE) model is proposed in which participation of regulators, investors, infrastructure, knowledge empowerment, market and research information, and financial incentives are mandatory. These findings may enhance knowledge of how inclusive business models can increase the welfare of the bottom of the pyramid segment.

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