Strategy of Developing Local Economy Based on Regional Superior Commodities

  •  Arie Eko Cahyono    
  •  Lioni Indrayani    


This paper discusses the strategy of developing a local economy based on regional superior commodities. Not many people can to process superior commodities into derivative products that have added value. Also, the limited access to price information and marketing networks forces farmers to sell their crops to collectors at a price that is determined unilaterally, which is why farmers do not get the maximum benefit. The purpose of this study is to formulate a leading commodity-based local economic development strategy to create competitiveness to improve the people’s economy. The method used is descriptive with a quantitative approach and is supported by location quotient (LQ) analysis, Shift-Share, and Value Added. To formulate a strategy used a SWOT analysis, to determine the program carried out by comparing current conditions with desired conditions and referring to the results of the SWOT analysis. The results of the study show that leading commodities are proven to have comparative advantages and have the potential to become the basis of regional economies. The integrated commodity product processing industry that produces a variety of processed products can provide economic value that increases the final value of superior commodities. Also, the activities of processing derivative products are also able to produce added value, provide profit margins to workers and employers, as well as contribute to other inputs for each kilogram of product produced. Processed products have the potential to provide high price margins to farmers and producers if the marketing system is more efficient. Based on the analysis-analysis, industrial clusters based on regional superior commodities can be developed.

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