The strategy of salt business development: A case study in sumenep, Indonesia

Abstract

Sumenep is one of the salt producers in Indonesia. The problem experienced by farmers is the production of salt using evaporation by solar energy that depends on the weather and the low price, caused by worse business management. Salt is a potential commodity, because its market is still wide open. This research aims to develop the salt production method and development strategy of salt business in Sumenep Regency by using SWOT analysis. The result of the analysis concludes that the priority of salt development business strategy in Sumenep Regency are: i) Geoisolator technology application strategy to produce good quality of salt; ii) cooperation strategy in group mechanism to build power and increasing the bargaining value of the farmers; iii) capital strengthening strategy through partner cooperatives; iv) broader marketing management management strategies to industrial salt user sectors.