Institutional Model and Strategy for Downstream Development of Shallot Agroindustry in Indonesia

The purpose of this research is to formulate the institutional structure and strategy for the downstream development of
the shallot agroindustry in Indonesia so that the actors and roles of each institution in the downstream shallot agroin
dustry are synergistic, network, relationship, collaboration, and interaction are established between actors and institu
tions and the occurrence of technology diffusion in the downstream institutional network. This study explains the in
stitutional development system of the shallot agroindustry using interpretive structural modeling (ISM). Model of the
downstream strategy for developing the shallot agroindustry using the analytical networking process technique based
on the approach to goals, policy criteria, and alternative strategies in the form of the analytical network process
(ANP). There are four critical elements for the development of the shallot agroindustry with coordination and collabo
ration between innovation actors: university academics, government, central and local governments, industry, and
society, namely farmers and consumers. The supply chain needs to improve the quality of raw materials for processed
shallot products. The strategies for developing shallot agroindustry are 1) increasing efficiency by integrating activi
ties according to each actor, 2) encouraging an increase in the supply of raw materials, and 3) innovation.