Mechanism model of technological incentives for the growth and development of small-scale Agro-industry groups in Indonesia (Case Study: Cocoa)

Abstract

The Indonesian government has sporadically carried out coaching and development of small industries, in the form of technology incentives. However, this technology incentive is still misdirected, because there is no standard mechanism for providing technology incentives. Misdirected technological incentives will not strengthen the group. This study aims to build a model mechanism for providing technology incentives by the government to agro-industry groups (cacao case study). The study used a soft system methodology (SSM) approach. This study is in 11 conceptual models of the mechanism for providing incentives by the government. The key elements of the action program are sector/quadrant IV (Independent), namely determining the Leading Sector, providing technology incentives for agro-industry groups, and compiling a map of group-based cocoa industry development problems. These elements have the greatest driving power with the lowest level of dependence on other elements. This means the second and fourth institutional elements are the most important key elements.