An Alternative Model of Cocoa Production Institution: A Solution in Facing Asean Economic Community

Abstract: There is an indication that cocoa production institution is not working well as
farmers’ expectations. The lack of coordination among institutions cause cocoa institutions
are not institutionalized. The study are expected to: (1) construct the institutional model
for enhancing competitiveness of cocoa exports in facing Asean Economic Community, (2)
formulate a coordination model among institutions of cocoa production in accelerating
Indonesian economic development. ISM analysis results show that: first, there are 11
institutions that should be more pro-active in improving cocoa production, namely: (1)
Indonesian Coffee and Cocoa Research Institute (ICCRI), (2) Gardens Management
Coordination Forum (FKMK), (3) Indonesian Cocoa Association (ASKINDO), (4) Indonesian
Cocoa Farmers Association (APKI), (5) Indonesian Cocoa Industry Association (AIKI), (6)
Provincial Office for Plantation, (7) Financial Institutions/Banks, (8) Marketing Agencies,
(9) Local Office for Forestry and Plantation, (10) Extension Service Officer in District level,
and (11) Joined Farmers Group (Gapoktan). Second, through the formulation of structural
model of coordination in the institutional production of cocoa in the acceleration of economic
development, it was revealed that the main causal of the coordination function weakness
are (1) the weak of institutional training, and (2) the impact of regional autonomy policy,
implies that an alternative model of cocoa production should focus on improving institutional
training and reducing negative impact of regional autonomy.