Study on Restructuring the Agro-Based Industry

IBRD Loan No. 3972-IND, Agency for Industrial and Trade Research and Development - Ministry of Industry and Trade.
Services: Resources Surveys; Sector Studies; Policy Studies; Market Studies; Financial Studies; Environmental Studies; Sociological Studies; Research Design/Evaluation; Technical Assistance and Advisory Services; Marketing and Distribution.

Name of Client: Agency for Industrial and Trade Research and Development - Ministry of Industry and Trade.

Name of Senior Professional staff (Project Director/Coordinator, Team Leader) involved and functions performed:

Ir. Tajuddin Bantacut, Ph.D- Environmental Expert.

Ir.  Didiek Hadjar Goenadi, Ph.D- Modern Biotechnology Specialist.

 The Study is aimed at strengthening the agro-based industry sub-sector through policy reforms and developing strategy for agro-based industry.  The study is being carried out to deliver outputs of:

1. Regulatory recommendations at sub-sector level;

2. Detailed design for a restructuring program;

3. Strategic plans for developing market channels;

4. Regulatory recommendations and design for 8 clusters of sub-sectors including 2 detailed clusters of oil palm and fisheries clusters;

5. Detailed design of restructuring programs for supporting industries;

6. Improvement of raw materials and primary processed products, public goods and support services, and

7. Detailed design for an institutional restructuring program.

The goal of the study is:

1. To strengthen the agro-based industry sub-sector by setting up a restructuring strategy for maintaining existing comparative advantage;

2.  Developing new competitive advantage to build knowledge-based agro industry; and

3.  Developing sound supporting industry.

General approaches used in the Study are policy-sensitive and market-oriented approach; agribusiness system approach; participatory approach; and institutional capacity building.

The project activities included:

1. Macro environment assessment including policy analysis, resource assessment, good governance analysis, infrastructure analysis, incentive analysis, and development gap analysis.

2. Agribusiness system analysis covering technology assessment as well as capital and investment analysis.

3. Market analysis consisting of institutional analysis, GAIN networking analysis, risk analysis, industry structure, conduct and performance assessment, supporting input industry analysis, product quality system and standard analysis, modern biotechnology/transgenic/GMOs analysis.  4. Benchmarking analysis for transforming unproductive operations into efficient and profitable ones.