AGRICULTURE SUPPLY CHAIN RESILIENCE DURING COVID-19 PANDEMIC IN INDONESIA

• Main Author: Mevi Novitasari, Modesta
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64506
• Institution: Institut Teknologi Bandung

Changes and uncertain events in the business management could result in the difficulties of managing the supply chain. The supply chain activity occurs in all sectors of business, including the agriculture sector. Agriculture business is important, because the sector contributes to the total world goods trade. Agriculture supply chain involves the production, processing, distribution, and consumption, which each stage of the supply chain process is dependent on. Supply chain activity is dynamic because of the uncertain events that might happen, further, it is a complex system that makes the supply chain faces disruptions because of the uncertain events and its complexity. Agriculture products are considered to have more risk in disruptions because of its perishability, seasonality, and supply spikes. To mitigate from risk, supply chains need to create resilient steps. Resilience concept will help the supply chain recover from disruption to the original state. The disruption problem which will attack the agriculture supply chain from the early 2020 is Covid-19 pandemic. The pandemic makes the changes that will disrupt the supply chain in Indonesia such as street and port closure that limit the mobility and hotels, culinary sites, and restaurant closure, due to minimizing the virus spread. The situation makes the local farmers faces difficulties to sell the fresh products due to low demand. This research wants to analyze the changes of the agriculture supply chain during the COVID-19 pandemic, identify the risk generated, and analyze the resilient steps to create resilience of the agriculture supply chain in the middle of the pandemic. Researchers use supply chain resilience concepts to analyze the data. Secondary data from questionnaire, webinars, and discussions related to agriculture supply chain disruptions is used for the data analysis. Mixed method is used for data processing. Qualitative method is used for data analysis to describe the result from online discussions and webinar. Quantitative method is used for descriptive analysis of questionnaire data using standard statistical analysis. The result shows that producers find difficulties managing agri-inputs and funds, and distributors face checkpoint inspection on the street. Further, the pattern of distribution is changed to online distribution. For retailers, it has shifted to online retailers, and they face panic selling, so lowering prices will help to sell the products. Consumer patterns also change from business to consumer. The risk faced in the supply chain includes the production risk, human resource risk, market risk, institutional risk, and financial risk. The resilience actions are collaboration with other businesses, adapting digital development for agribusiness, and applying regional food networks.