Risks and Risks Mitigations in the Supply Chain of Mangosteen: A Case Study

Retno Astuti
University of Brawijaya, Indonesia

Marimin
Bogor Agricultural University, Indonesia

Machfud
Bogor Agricultural University, Indonesia

Yandra Arkeman
Bogor Agricultural University, Indonesia

Mangosteen (Garcinia mangostana L.) is the highly demanded fruit for export commodity from Indonesia. The biggest mangosteen production center in Indonesia is West Java Province. The development of the mangosteen supply chain in Indonesia, particularly in West Java Province is heavily affected by uncertain potential risks for the chain. This paper identifies potential risks of the supply chain and studies the interrelationships between strategies for mitigating those risks. Fuzzy Analytical Hierarchy Process (AHP) was utilized to identify the main risks then Interpretive Structural Modeling (ISM) was used to illustrate the interrelationship of those risks mitigations. Data were gathered through questionaires guided interviewing the experts of mangosteen business. Results show that the main risks of the chain to reach its goal are business relationships between partners and return on investment uncertainty. Horizontal coordination and trust building between partners should be considered to mitigate those risks as these strategies are found to have a strong driving power to influence others risks mitigation strategies. Improved coordination and trust building may advocate the Indonesian government to facilitate the provision of soft loans to agricultural businesses, which enables the farmers’ cooperative to buy mangosteen in cash therewith improving their return on investment.

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