Reviews in Agricultural Science
Online ISSN : 2187-090X
Development Strategies of the Local Auction Market of Agricultural Product in Indonesia
Agus D Nugroho
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2021 Volume 9 Pages 56-73

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Abstract

Agriculture plays an important role in Indonesia, but it is often neglected by various parties. As a result, farmers face many problems particularly when it comes to selling their products. The solution is to strengthen the agricultural institutions, especially the auction market. This institution has proven to provide many benefits for all parties. Farmers' products are sold in large quantities at high prices and strengthen the existence of farmer groups. Consumers also get high-quality products while the industry will get a continual supply of raw materials. For the economy, the auction market has been shown to improve agricultural trade efficiency and contribute to government revenue. However, the auction market's performance is still not optimal due to ack of rigorous rules, lack of quantity and quality human resources, lack of funds and infrastructure, competition with traders, and weak support from other parties. The auction market needs to make a good collaboration with suppliers, buyers, financial institutions, and the government.

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