Distribusi Nilai Tambah Ekonomi untuk Pembangunan Ekonomi Berkelanjutan: Studi Kasus Eksploratif di Kabupaten Sukabumi

Risma Nurmilah; Dine Meigawati; Ismet Ismatullah

doi:10.59059/jupiekes.v4i3.3496

Authors

Risma Nurmilah Universitas Muhammadiyah Sukabumi
Dine Meigawati Universitas Muhammadiyah Sukabumi
Ismet Ismatullah Universitas Muhammadiyah Sukabumi

DOI:

https://doi.org/10.59059/jupiekes.v4i3.3496

Keywords:

Farmer's Share, Local Institution, Sustainable Development, Value Added, Value Chain

Abstract

Sustainable economic development in the food and agriculture sector requires an equitable distribution of value added along the supply chain. However, institutional economics theory (Stiglitz) and value chain theory (Porter, Gereffi) generally predict that farmers occupy a disadvantaged position in food supply chains due to information asymmetry and weak bargaining power, implying a low farmer share of value added and a high degree of inequality between upstream and downstream actors. This exploratory case study examines early indications regarding that expectation on the rice supply chain in Sukabumi Regency using a quantitative approach with a small-scale survey method. Data were analyzed using Value Chain Analysis, Value Added Analysis, Farmer's Share, Marketing Margin, and an Inequality Index. Within the scope of this case study, results based on cash production costs diverge from the theoretical expectation. Farmers receive the largest share of value added, at 56.4 percent of the total, and an Inequality Index of 0.774 indicates that downstream income has not yet exceeded farmers' income. However, a sensitivity analysis shows that this finding reverses once unpaid family labor is imputed: the farmers' share of value added falls to 48.2 percent and the Inequality Index rises to 1.074, indicating that downstream income slightly exceeds farmers' income. Regardless of the sensitivity of the value-added results, the study consistently finds that the real constraint lies in local institutions: 70 percent of farmers are unaware of the village-owned enterprise (BUMDes) as a potential marketing partner, even though every surveyed BUMDes expressed willingness to act as an offtaker. This suggests that the main barrier to equitable but also involves weak information dissemination and institutional trust. Given the limited sample size and the sensitivity of results to the cost basis used, these findings are indicative and warrant further testing at a larger scale. The study recommends strengthening local institutions to improve market certainty for farmers.

References

Bahri, T. S., Hakim, D. B., Juanda, B., & Sahara, S. (2021). Determinants of performance and structural relationships of rice processing industry performance: Resources based view approach. Quality Innovation Prosperity, 25(3), 18–32. https://doi.org/10.12776/qip.v25i3.1587

Balanay, R. M., & Guinancias, A. R. (2025). Streamlining a short supply chain for increased agricultural resilience and global market opportunities: The case of lemongrass (Cymbopogon citratus) in Caraga Region, Philippines. Agricultural and Food Economics, 13(1), 41. https://doi.org/10.1186/s40100-025-00385-3

Chuma, B. L., Thomas, B., & Togarepi, C. (2026). Smallholder farmers’ perceptions of cattle contract farming in the Northern communal areas of Namibia. Cogent Food & Agriculture, 12(1), 2621451. https://doi.org/10.1080/23311932.2026.2621451

Dindar, E. (2026). TSRS-aligned sustainability reporting in Turkey’s agri-food sector: A qualitative content analysis based on GRI 13 and the SDGs. Sustainability, 18(2), 1085. https://doi.org/10.3390/su18021085

Gai, A. M., Ernan, R., Barus, B., & Fauzi, A. (2025). Composite index of poverty based on sustainable rural livelihood framework: A case from Manggarai Barat, Indonesia. Geographies, 5(4), 58. https://doi.org/10.3390/geographies5040058

Hidayati, D. R., Garnevska, E., & Childerhouse, P. (2023). Enabling sustainable agrifood value chain transformation in developing countries. Journal of Cleaner Production, 395, 136300. https://doi.org/10.1016/j.jclepro.2023.136300

Jusni, J. A., & Aswan, A. (2021). The choice of a marketing channel to benefit corn producer’s welfare in Indonesia. Innovative Marketing, 17(2), 45–57. https://doi.org/10.21511/im.17(2).2021.05

Kassa, G., Sangha, K. K., Murphy, B. P., & Mazhar, M. S. (2026). Challenges and prospects of cotton farming in the tropics: Lessons for northern Australia. Journal of Cotton Research, 9(1), 2. https://doi.org/10.1186/s42397-025-00249-7

Mhando, D. G. (2026). Transforming smallholder orange farming in Tanzania: Institutional constraints and sustainability pathways in Muheza District. Cogent Food & Agriculture, 12(1), 2634429. https://doi.org/10.1080/23311932.2026.2634429

Ndwandwe, N., Dumisa, B. M., Tabalaza, P., Ntshangase, N., Sibanda, M., & Khumalo, N. Z. (2026). Home-grown indigenous vegetables and risk mitigation strategies for enhancing food and nutrition security among small-scale farming households: A systematic review. Sustainability, 18(3), 1176. https://doi.org/10.3390/su18031176

Nugraha, H., Purwanto, E., Christian, M., & Rembulan, G. D. (2026). The evolution of research in agricultural technology and rural development: A bibliometric analysis. Journal of Global Innovation in Agricultural Sciences, 14(1), 175–192. https://doi.org/10.22194/JGIAS/26.1697

Ritonga, Z., Sepriani, Y., Mulyadi, Muchsin, Zalikha, & Yusuf, M. (2026). Institutional reform for equitable value distribution in the rice industry of Aceh, Indonesia. International Journal of Accounting and Economics Studies, 13(1), 629–637. https://doi.org/10.14419/ygmv6k40

Ruspayandi, T., Bantacut, T., Arifin, B., & Fahmi, I. (2022). Market-approach-based policy to achieve rice price stability in Indonesia—Can it be a complement? Economies, 10(12), 296. https://doi.org/10.3390/economies10120296

Sun, X., Fan, X., Liu, Q., & Lyu, J. (2026). Balancing livelihoods and sustainable development: How does off-farm employment affect agricultural green total factor productivity in China? Sustainability, 18(1), 155. https://doi.org/10.3390/su18010155

Tarlani, T., Dariah, A. R., & Rani, A. M. (2022). Transforming rural economy through community-based tourism with village-owned enterprise (BUMDES, Badan Usaha Milik Desa): A case study Cibiru Wetan, Pagerwangi and Cipamekar Villages, Indonesia. International Journal of Sustainable Development and Planning, 17(5), 1535–1542. https://doi.org/10.18280/ijsdp.170517

Velázquez-Torres, A. L., Martínez-Castañeda, F. E., Callejas-Juárez, N., Rogers-Montoya, N. A., Herrera-Tapia, F., Hernandez, E., & Thomé-Ortiz, H. (2025). Sustainability and competitiveness of Mexican rose production for export: A policy analysis matrix approach assessing economic and social dimensions. Sustainability, 17(24), 11289. https://doi.org/10.3390/su172411289

Yigezu, Y. W., Sidell, Z. S., & Astatkie, T. (2026). Profitability drivers of carrot farming and its implications on food security of smallholder farmers in Northwest Ethiopia. Discover Food, 6(1), 17. https://doi.org/10.1007/s44187-025-00747-2

Zinyoro, E., Mwadzingeni, L., & Leonah, D. M. (2025). Assessment of market barriers amongst the indigenous vegetable vendors in the city of Tshwane, Gauteng Province, South Africa. Discover Sustainability, 6(1), 1198. https://doi.org/10.1007/s43621-025-02113-9