NAME: R.

DIMAS BANY ADHIMAN

NIM : A1B02310039

MACROECONOMICS ASSIMEGMENT (Case Based Learning)

1. Weaknes
The corn export sector in Gorontalo faces several internal weaknesses. Inadequate road
infrastructure and damaged bridges increase transportation costs and reduce export competitiveness. The
transportation to the export port is often slowed down by market crowds. Limited contact persons for
export market access, particularly beyond the Philippines, pose challenges for exporters. The reference
price set by the Regional Government is not consistently used by all warehouses/exporters, leading to
unfair price competition and potential disruption in corn production development. The accuracy of water
content gauges and scales used by collectors is questionable, leading to potential conflicts among farmers,
traders, and warehouses/exporters. Lastly, the untimely and insufficient availability of seeds and fertilizers
disrupts the corn production process. These factors collectively hinder the development and
competitiveness of Gorontalo’s corn exports.
2. Threads

Several factors pose a threat to the strategy of encouraging corn exports from Gorontalo.
The development program for upland rice could potentially shift the use of new planting areas
for corn, creating a competition for land use. The export market for corn is less diversified, with
the Philippines being the dominant destination, posing risks to the continuity and volume of
exports. Relying solely on raw materials for corn exports also poses a risk, as the demand for
shelled corn may become saturated. The lack of diversification in processed corn exports, despite
its high added value, is another concern. Changes in government policy to free corn imports
could reduce domestic corn prices, potentially weakening farmers’ motivation to cultivate corn
and disrupting the sustainability of corn exports. Lastly, the development of the domestic feed,
food, and beverage industries based on corn could increase domestic demand for corn, reducing
the proportion available for export. While this could have a positive impact on the domestic corn
industry, it could also reduce corn exports. These factors collectively pose significant threats to
the strategy of promoting corn exports from Gorontalo.

3. Strategies that we can do to overcome weaknesses and threats

The current practice of exporting raw, shelled corn from Gorontalo presents a significant risk to
the sustainability and profitability of the corn export sector. The demand for raw corn may become
saturated, and the sector is missing out on the potential high added value that processed corn products can
offer.
To address this, a comprehensive strategy could be implemented to promote the processing of corn
into value-added products before export. This strategy could involve several key steps:
• Firstly, an assessment of the current corn processing capabilities in Gorontalo could be
conducted. This would involve identifying existing processing facilities, their capacities, the types
of products they currently produce, and any gaps or opportunities for expansion or improvement.
• Secondly, research could be conducted into potential value-added corn products that could be
produced. This could involve looking at global trends in corn product demand, potential markets
for these products, and the feasibility of producing these products in Gorontalo.
• Thirdly, investment could be sought to upgrade existing processing facilities or establish new
ones to produce these value-added products. This could involve seeking funding from
government programs, private investors, or international development organizations.
• Fourthly, training programs could be established to equip local farmers and workers with the
skills needed to produce these value-added products. This could involve partnerships with
agricultural colleges or vocational training centers.
• Finally, marketing and export strategies could be developed to promote these value-added
products to potential international buyers. This could involve participation in international trade
fairs, development of branding and packaging, and establishment of export partnerships.
By implementing this strategy, Gorontalo could increase the profitability of its corn exports,
reduce its dependence on raw corn exports, and create a more sustainable and resilient corn export
sector. This would also have the added benefit of creating jobs and boosting the local economy.
This strategy, however, would require a coordinated effort from various stakeholders, including
farmers, processors, exporters, government agencies, and development partners. It would also require
a conducive policy environment that supports value addition and export diversification. But with the
right commitment and resources, it is a strategy that has the potential to transform Gorontalo’s corn
export sector for the better.