Small-scale agricultural product marketing innovation through BUMDes and MSMEs empowerment in coastal areas

Abstract

A region’s economic growth depends on the development policies based on the wealth determined from the potential of human, institutional and local resources. Furthermore, tThe development needs to link primary sectors with future processing to increase agricultural products’ added value and marketing competitiveness. This study develops an innovative marketing model in agricultural products for small-scale farmers through village-owned enterprises (BUMDes) and micro, small, and medium enterprises (MSMEs) empowerment in coastal areas. One way of realizing this program is by building agribusiness and agro-industry partnerships that are well-planned and associated with other economic sectors' development. The partnership involves community economic institutions, including BUMDes, credit institutions, farmer entrepreneurs, as well as Micro, Small, and Medium Enterprises. BUMDes is a rural-based business with a legal entity managed by the village government to create added value for the community’s agricultural products. Together with MSMEs, these businesses need to support the agribusiness subsystem's development, including trading in agricultural production facilities and business activities. Furthermore, they need to promote agricultural production, support services, a source of market information for rural communities, the main actors of appropriate technology for agricultural products.