Institutions and coordination models in na-oogst tobacco agribusiness

Muksin alyasini, Cherry Triwidianto, Dasmin Sidu, Alfi Hidayatu Miqawati


One  of  the  main  issues encompassing Na-Oogst (NO) tobacco  agribusiness  is farmers’ dissatisfaction toward manufactured tobacco selling price. In general, a little trust is built among NO tobacco agribusiness actors.  This  condition  can  be  seen  from  the  lack  of partnership  offered  by  tobacco  companies.  Efforts  to  socialize  the  partnership  cannot  be implemented  optimally  because  an  assumption about the  farmer  groups’ less  role exists. Ideally, farmer  groups  are  institutions  that  should  be  able  to connect farmers as  NO tobacco producers and product  recipients companies.  These  conditions  certainly  contribute  to  the achievements of overall tobacco agribusiness. Based on the description, this study aimed at: (a) describing institutions  involved  in  NO  tobacco  agribusiness,  (b)  identifying roles of the institutions and coordinations formed in NO tobacco agribusiness chain, and (c) analyzing the effectiveness  and institutional  strengthening  efforts to  support  better  tobacco  agribusiness chain.  The  results  showed  (i)  there were institutions in  the  level  of  farmers,  traders,  and companies  contributing to the supply  chain of NO  tobacco, (ii) direct  and  indirect roles of institutions affected the coordination among agribusiness actors, and (iii) the effectiveness of institutional  coordination has  not  met  the expectations  and strengthening  efforts  at  key institutions, especially the government, are needed.

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