The Revitalization of Warehouse Receipt System Through Business Process Improvement in Order to Support National Food Security

Abstract

Warehouse Receipt System (WRS) is one of government programs that aims to increase farmers’ income and support national food security. Based on data from Ministry of Trade, up to 2017 there are 121 public and 56 private warehouses which are spread out in 27 provinces and 124 regencies. In its implementation, the WRS has not been used optimally by farmers so that the purpose of its allocation has not been achieved significantly. Apart from the technical constraints of implementation in the field, this paper observed problems from the side of the implementation business process applied. Researchers make observations and interviews to stakeholders (farmers, warehouse manager, bank, local government) in warehouse best practice in Cianjur, to explore the existing implementation of WRS in Indonesia, and analyzes the weaknesses of the implementation business process. By doing literature review and benchmarking of the WRS implementation in some countries, this paper proposes improvement business process in order to strengthen the impact of WRS and reach the goals. The outcome of our proposed business plan is that farmer must deliver their harvest to WRS and further farmer doesn’t have to take care their lending fund to lender because WRS manager will give the funds to farmer. Apart from it, farmer does not have to worries about how selling their harvest because WRS manager will help to distribute and sell and this entire process can be monitored by farmer through Mobile WRS app. The research also conducts Focus Group Discussion with expert and Bappepti (government body who responsible to WRS) to validate the proposed business process and provides some recommendations to implement the business process.