STRATEGY TO IMPROVE THE COMPETITIVENESS OF THE INDONESIAN SHRIMP INDUSTRY

Abstract

In the macro-environment faced by Indonesia, shrimp industry is getting more important as the competitiveness of the export-oriented industry is enhanced by the devaluation of Rupiah against US dollar. Amidst the crisis shrimp is regaining its role as a leading export commodity. However, similar to other important agribusiness activities, Indonesian shrimp industry only relies on the comparative advantages. Therefore most of Indonesian shrimp are exported to Japan, while the USA and the European markets were not easy to be penetrated. The USA and the European markets which impose high requirement for the products imported frequently embargoed Indonesian shrimp. The objective of this study was to formulate the strategies to find out alternatives solutions that can be applied to solve the Indonesian shrimp Industry problems by the Government of Indonesia and the shrimp entrepreneurs. SWOT analysis was used to identify the environmental assessment of shrimp Industry to evaluate strengths, weaknesses, opportunities, and threats. Meanwhile, In order to obtain the priority or weight for each element in internal and external factors, Analytical Hierarchy Process (AHP) was applied. Data were analyzed using Expert Choice Version 8.0. The finding of this study indicates that the position of Indonesian shrimp industry is in the average position, neither too weak nor too strong, both internally and externally. Considering SWOT analysis, Expanding the existing products into new market while maintaining the existing market using comparative advantages, is the best strategy at this moment, before the competitive advantages can be increased. Further, the improvement of shrimp pond production management in order to increase the productivity, the development of added value products through the improvement of shrimp processing, the implementation of clean technology to create green products, and the development of alternative inputs for shrimp feed industry are the other important strategies that have to be conducted to increase the competitiveness of the Indonesian shrimp industry.