Determining priority strategies for chili agribusiness development through an integrated strategic analysis framework in Tolitoli District, Indonesia

Main Article Content

RILWANU RAHMAN ALATAS
ABDUL RAZAK MUNIR
ABD HARIS BAHRUN

Abstract

Abstract. Alatas RR, Munir AR, Bahrun AH. 2026. Determining priority strategies for chili agribusiness development through an integrated strategic analysis framework in Tolitoli District, Indonesia. Asian J Agric 10 (1): g100160. https://doi.org/10.13057/asianjagric/g100160. Chili pepper (Capsicum spp.) is a strategic horticultural commodity in Indonesia due to its high consumption level and significant influence on food price stability. In Tolitoli District, despite favorable agroclimatic conditions, chili productivity remains substantially below the provincial average (1.14 ton ha compared with 6.43 ton ha at the provincial level in 2023), while recurring price volatility contributes to regional inflation, reaching 7.21% year-on-year in 2024. These challenges are associated with weak farmer institutions, limited bargaining power, and fragmented agribusiness integration. This study aims to analyze internal and external factors, formulate alternative development strategies, and determine priority strategies for chili agribusiness development in Tolitoli District. A descriptive-exploratory mixed-methods approach was employed, integrating qualitative and quantitative data collected from key stakeholders. Data were analyzed sequentially using the Internal Factor Evaluation (IFE) matrix, External Factor Evaluation (EFE) matrix, Grand Strategy Matrix, and SWOT analysis, followed by prioritization using the Analytical Hierarchy Process (AHP). The results indicate that chili agribusiness development is positioned in Quadrant I of the Grand Strategy Matrix, reflecting a strong competitive position and high growth potential. Institutional support emerges as the most influential criterion in determining strategic priorities. The development of area-based chili production centers, aligned with land potential and market demand, is identified as the top priority strategy. The AHP results demonstrate acceptable consistency, with a consistency ratio (CR) below the threshold of 0.10. These findings highlight the importance of strengthening institutional coordination and promoting integrated, cluster-based agribusiness development to enhance competitiveness, stabilize prices, and ensure long-term sustainability of chili agribusiness in Tolitoli District.

Article Details

Section

Articles

How to Cite

ALATAS, R. R., MUNIR, A. R., & BAHRUN, A. H. (2026). Determining priority strategies for chili agribusiness development through an integrated strategic analysis framework in Tolitoli District, Indonesia. Asian Journal of Agriculture, 10(1). https://doi.org/10.13057/asianjagric/g100160

References

Anggorowati S, Sugiyarto, Darwanto DH. 2022. Strategies for agribusiness development of chili farming in Boyolali Regency. J Agribus Manag Dev 3 (2): 50-57. https://doi.org/10.22146/jamadev.v3i2.2207.

Ariyantini M, Wildayani E, Antoni M, Adriani D. 2025. Alternatif strategi pengembangan agribisnis tanaman gambir di Desa Toman Kecamatan Babat Toman Kabupaten Musi Banyuasin. Jurnal Agrica 18 (1): 111-120. [Indonesian]

Badan Pusat Statistik (BPS) Kabupaten Tolitoli. 2024. Kabupaten Tolitoli dalam Angka 2024. BPS Kabupaten Tolitoli, Tolitoli. [Indonesian]

Baffoe G. 2019. Exploring the utility of Analytic Hierarchy Process (AHP) in ranking livelihood activities for effective and sustainable rural development interventions in developing countries. Eval Program Plan 72: 197-204. https://doi.org/10.1016/j.evalprogplan.2018.10.017.

Creswell JW, Plano Clark VL. 2018. Designing and Conducting Mixed Methods Research. 3rd Edition. Sage Publications, Thousand Oaks, CA.

David FR, David FR. 2017. Strategic Management: A Competitive Advantage Approach, Concepts and Cases. 16th Edition. Pearson Education Limited, Essex, Edinburgh.

David FR. 2011. Strategic Management: Concepts and Cases. 13th Edition. Pearson Education, Upper Saddle River, NJ.

Devaux A, Torero M, Donovan J, Horton D. 2018. Agricultural innovation and inclusive value-chain development: A review. J Agribus Dev Emerg Econ 8 (1): 99-123. https://doi.org/10.1108/JADEE-06-2017-0065.

Etongo D, Bristol U, Epule TE, Bandara A, Sinon S. 2023. Expert elicitations of smallholder agroforestry practices in Seychelles: A SWOT-AHP analysis. Reg Sustain 4 (3): 282-295. https://doi.org/10.1016/j.regsus.2023.08.006.

Faisol A, Tan Malayu ITA, Pawana Nur Indah D. 2022. Priorities development of food crops and horticulture agribusiness in Mojokerto Regency. J Econ Finance Manag Stud 5 (3): 466-473. https://doi.org/10.47191/jefms/v5-i3-04.

Fauziah F. 2016. The response of farmers in coastal sand farm to auction marketing system of chili at subdistrict Panjatan Kulon Progo, Yogyakarta. Pros Sem Nas Masy Biodiv Indon 3: 94-98. https://doi.org/10.13057/psnmbi/m030116.

Halim H. 2022. Analisis SWOT-AHP dalam pengembangan agribisnis kacang tanah di Sulawesi Selatan. Jurnal AgriMu 2 (2): 39-48. https://doi.org/10.26618/agm.v2i2.7711. [Indonesian]

Juhandi D, Darwanto DH, Masyhuri, Mulyo JH, Sasongko NA, Anda M, Martini T. 2023. Farm sustainability assessment and model: Achieving food security through the food estate program in North Sumatra. Land 12 (10): 1833. https://doi.org/10.3390/land12101833.

Kusmiati A, Hani ES, Aji JMM, Supriono A, Hariyati Y, Zainuddin A, Suwali. 2025. Key sub-elements and structural models to improve red chili supply chains resilience in East Java Province, Indonesia. IOP Conf Ser Earth Environ Sci 1497 (1): 012028. https://doi.org/10.1088/1755-1315/1497/1/012028.

Lubis FA, Harisudin M, Fajarningsih RU. 2019. Development strategy of red chili agribusiness in Sleman Regency using analytical hierarchy process method. Agraris: J Agribus Rural Dev Res 5 (2): 119-128. https://doi.org/10.18196/agr.5281.

Lukas A, Kairupan AN, Hendriadi A et al. 2023. Fresh chili agribusiness: Opportunities and problems in Indonesia. In: Özçatalbaş O (eds.). Agricultural Economics and Agri-food Business. IntechOpen, London. https://doi.org/10.5772/intechopen.112786.

Misran MFR, Roslin EN, Mohd Nur N. 2020. AHP-consensus judgement on transitional decision-making: With a discussion on the relation towards open innovation. J Open Innov Technol Mark Complex 6 (3): 63. https://doi.org/10.3390/joitmc6030063.

Nguyen HN, Lasa G, Iriarte I, Atxa A, Unamuno G, Galfarsoro G. 2022. Datasets of skills-rating questionnaires for advanced service design through expert knowledge elicitation. Sci Data 9: 321. https://doi.org/10.1038/s41597-022-01421-3.

Novita D, Supriana T, Sirozujilam, Lubis SN. 2024a. Measuring the sustainability of red chili agribusiness system in North Sumatera Province, Indonesia. Jurnal Ilmiah Ilmu Terapan Universitas Jambi 8 (1): 334-349.

Novita D, Supriana T, Sirozujilam, Lubis SN. 2024b. Strategy of development of sustainable red chili agribusiness areas in North Sumatra Province. J Ecohumanism 3 (7): 4983-4997. https://doi.org/10.62754/joe.v3i7.4607.

Nugrahapsari RA, Arsanti IW. 2018. Analisis volatilitas harga cabai keriting di Indonesia dengan pendekatan ARCH GARCH. Jurnal Agro Ekonomi 36 (1): 25-37. https://doi.org/10.21082/jae.v36n1.2018.25-37. [Indonesian]

Patima N, Kamaruddin CA, Hastuti DRD, Rahim A. 2024. Strategi pengembangan agribisnis komoditas cabai di Kota Makassar. Mimbar Agribisnis 10 (2): 2732-2741. https://doi.org/10.25157/ma.v10i2.14381. [Indonesian]

Patton MQ. 2002. Qualitative Research and Evaluation Methods. 3rd Edition. Sage Publications, Thousand Oaks.

Porter ME. 1990. The competitive advantage of nations. Harv Bus Rev 68 (2): 73-93. https://doi.org/10.1002/cir.3880010112.

Raišienė AG, Raišys SJ. 2022. Business customer satisfaction with B2B consulting services: AHP-based criteria for a new perspective. Sustainability 14 (12): 7437. https://doi.org/10.3390/su14127437.

Republik Indonesia. 2015. Peraturan Presiden Nomor 71 Tahun 2015 tentang Penetapan dan Penyimpanan Barang Kebutuhan Pokok dan Barang Penting. Sekretariat Negara, Jakarta. https://peraturan.bpk.go.id. [Indonesian]

Rico, Darma R, Salman D, Mahyuddin. 2024. The performance of arabica coffee agribusiness actors in North Toraja Regency, Indonesia. Cogent Food Agric 10 (1): 2363002. https://doi.org/10.1080/23311932.2024.2363002.

Saaty TL. 1993. Pengambilan Keputusan bagi Para Pemimpin: Proses Hirarki Analitik untuk Pengambilan Keputusan dalam Situasi yang Kompleks. Pustaka Binaman Pressindo, Jakarta. [Indonesian]

Saaty TL. 2008. Decision making with the analytic hierarchy process. Intl J Serv Sci 1 (1): 83-98. https://doi.org/10.1504/IJSSCI.2008.017590.

Saptana S, Ariningsih E, Ashari, Gunawan E, Perwita AD, Sukmaya SG, Saliem HP, Purba HJ, Indraningsih KS, Pitaloka AD, Hayati NQ. 2022. Competitiveness and impact of government policy on chili in Indonesia. Open Agric 7 (1): 226-237. https://doi.org/10.1515/opag-2022-0083.

Sultan M, Siregar AR, Munir AR, Jamil MH, Bahrun AH. 2024. Coffee bean marketing strategy using SWOT analysis at Kapakata Coffee Roasters. Pak J Life Soc Sci 22 (2): 2411-2423. https://doi.org/10.57239/PJLSS-2024-22.2.00175.

Wardhono A, Nasir MA, Qori’Ah CG, Indrawati Y. 2021. Perfecting policies of chili agribusiness to support food security: Evidence from Indonesia Districts. IOP Conf Ser Earth Environ Sci 759 (1): 012048. https://doi.org/10.1088/1755-1315/759/1/012048.

Wijana IW, Setiawina ND. 2021. Farmers’ institutions and social capital in improving the welfare of chili farmers. Intl J Econ Bus Manag Res 5 (3): 222-235.

Yanuarti, AR, Afsari MD. 2016. Profil Komoditas Barang Kebutuhan Pokok dan Barang Penting Komoditas Cabai. Direktorat Jenderal Perdagangan Dalam Negeri, Kementerian Perdagangan Republik Indonesia, Jakarta. [Indonesian]

Most read articles by the same author(s)