An Alternative Model of Cocoa Production Institution: A Solution in Facing Asean Economic Community

Abstract

There is an indication that cocoa production institution is not working well as farmers’ expectations. The lack of coordination among institutions cause cocoa institutions are not institutionalized. The study are expected to: (1) construct the institutional model for enhancing competitiveness of cocoa exports in facing Asean Economic Community, (2) formulate a coordination model among institutions of cocoa production in accelerating Indonesian economic development. ISM analysis results show that: first, there are 11 institutions that should be more pro-active in improving cocoa production, namely: (1) Indonesian Coffee and Cocoa Research Institute (ICCRI), (2) Gardens Management Coordination Forum (FKMK), (3) Indonesian Cocoa Association (ASKINDO), (4) Indonesian Cocoa Farmers Association (APKI), (5) Indonesian Cocoa Industry Association (AIKI), (6) Provincial Office for Plantation, (7) Financial Institutions/Banks, (8) Marketing Agencies, (9) Local Office for Forestry and Plantation, (10) Extension Service Officer in District level, and (11) Joined Farmers Group (Gapoktan). Second, through the formulation of structural model of coordination in the institutional production of cocoa in the acceleration of economic development, it was revealed that the main causal of the coordination function weakness are (1) the weak of institutional training, and (2) the impact of regional autonomy policy, implies that an alternative model of cocoa production should focus on improving institutional training and reducing negative impact of regional autonomy.