Development of the Mainstay Food Industry Based on a Creative Economy

Abstract

Background: The food industry is a small and medium-sized enterprise (SME) that contributes 39.41% to the total business units and has the highest production value (75.22%) in Jambi Province. Furthermore, Batang Hari Regency has 838 food industry business units and is the 8^th ranked in food industry ownership in Jambi Province, but the 1st in production value contribution. Therefore, it is necessary to design a strategy to establish a sustainable, creative, food industry-based economy to develop the industry.

Objective: This research aims to determine the mainstay of the creative economy-based food industry in Batang Hari Regency, Indonesia. It also formulates strategies for developing a sustainable, creative, economy-based mainstay food industry.

Methodology: This research used quantitative, descriptive, and observational methods. The Technique for Order Preference by Similarity to Ideal Solution (TOPSIS ) analysis model was used to determine the leading food industry. Meanwhile, the SWOT–TOPSIS was used to formulate industrial development strategies.

Result: The results showed that the food industry in the Batang Hari district consisted of 5 business groups: tubers, fruits, plantation products, river/fish products, and processed nuts. Of the five business groups using the TOPSIS (model, the food industry from the processed nuts group was selected as the mainstay food industry. The development strategy of the processed nuts business group as a mainstay food industry in Batang Hari district is carried out through multi-flavoured products, increasing labour competence, creating contemporary processed products, providing low-cost credit facility assistance, and expanding the market through multimedia.

Conclusion: The processed nuts business group is the mainstay of the food industry. Development strategies can be carried out through multi-flavoured products and various product development, increasing labour competence, creating contemporary processed products, and providing credit facility assistance with low capital cost programs.

Unique contribution: This research develops a SWOT (strengths, weaknesses, opportunities, and threats) model combined with criteria in the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) model to formulate a food industry development strategy based on the creative economy.

Key Recommendation: Labour competence, business management skills, production design, and capital support for technology financing and market research on consumer tastes must be improved.