Wealth Creation for All:

Inclusive Business
Ecosystem for Managing
Actors in Fisheries
Business. The Case of
KUD Minasari,
Pangandaran, West Java.
Declining Fish Production in KUD
Minasari, Pangandaran
• Pangandaran contributes 18.67% of fish production in Java Island
according to KKP data in 2015 and contributes 3.376% to the total
Indonesian fishery production. (2,220 tons of fish, amounting to 43.03
billion)
• KUD Minasari owns one of the biggest fish auctions in Pangandaran. The
total fish production and sales of KUD Minasari continued to increase
between 2012 and 2015. However, since 2016, the fish production has
experienced a major decline (The average daily income of fishermen is
Rp. 31,448.22)
• KUD Minasari still cannot fulfill its main task of avoiding poverty and low
income of the fishermen.
Company Background
• Established on January 2, 1962. The purpose of this cooperative was to provide solutions
for fishermen who have difficulty in marketing their catch.
• All this time they are trapped by the debt bondage system (ijon system), where their catch
is weighed, and the buyer determines the price without any price competition (auction).
• This cooperative also provides fishing gear that the fishermen need, such as nets and
fishing lines.
• The cooperative builds fish auction sites aimed at increasing the selling price rather than
the production of fishermen. Usually fishermen sell their catch to the middleman, which
causes their selling price to be very low.
• KUD Minasari provides membership protection guarantee in the form of managing social
funds for marine accidents, death funds, famine funds, and Asuransi Bumi Putera. The
social unit is a business unit of KUD intended to help the welfare of its members.
Company Background
• KUD Minasari provides membership protection guarantee in the form
of managing social funds for marine accidents, death funds, famine
funds, and Asuransi Bumi Putera. The social unit is a business unit of
KUD intended to help the welfare of its members.
• The source of such funds is social funds, famine funds, insurance
funds and saving funds whose magnitudes are 0.10%, 0.20%, 0.15%,
and 0.35% of retribution, respectively.
• The source of such funds is social funds, famine funds, insurance
funds and saving funds whose magnitudes are 0.10%, 0.20%, 0.15%,
and 0.35% of retribution, respectively.
Company Background
• The mina cooperative in Pangandaran has contributed to the marketing of fish by fishery production.
There are two fishery production lines that have been applied. The first is the sale of fish and
processed products in his KUD shop. Then the second is to create a restaurant that utilizes fish caught
by fishermen.
• Then there are two lines of business that helped the welfare of fishermen, the cooperative build
lodging for the public. The two cooperatives build a heavy equipment rental business for local
development
• The most important role of the cooperative to the fishermen is the cooperative, which serves as a
provider of health insurance to fishermen. This is an important government policy to fishermen who
will maintain the continuity of the fishing profession. Some guarantees offered are social funds for
broken net, sick person, and broken ship.
• The role of the cooperative is to provide training, provide information from the government and other
parties, manage the fish auction place, bridge the service and fisherman, guarantor, aspirant,
fisherman financial manager, fish price balancer, fish production recorder, and processed business
idea maker.
Fisheries Business in
Pangandaran
• In the Pangandaran fishery business, the threat of new entrants is low
because the party organizes the fish sale legally and the fish auction is
only the place managed by the cooperative that is protected by law.
There is moderate rivalry among existing firms because there is a
competitor's auction place from other regions. The Pangandaran area
is TPI and managed by a Minasari cooperative. Supplier bargaining
power is low because the fish auction site already provides a selling
place for fish whose sale value is higher than competitors. Buyer
bargaining power is also low because the government has set sale and
purchase transactions conducted at the fish auction. They inevitably
buy the fish at the auction organized by the cooperative.
KUD Minasari Issues
• The problem faced by Pangandaran fishermen is that they have declining production capacities (Exhibit 2), but their operational
costs remain high. The problem faced by Minasari Cooperatives is that they have difficulties to meet market demand, which
includes existing and potential markets. The main problem details of KUD Minasari are summarized in Exhibits 3 and 4. Based on
the previous chapter, the internal and external analysis can be concluded in one root cause diagram. There are 12 attributes for
KUD Minasari that need improvement:
1. Customers are limited to the cooperative members
2. High operational cost
3. No storage
4. Unfair measurement
5. No proper storage
6. Transportation not yet fully utilized
7. Customer is not representative of the selling company
8. The price is too high for customers
9. There are debts from previous management
10.No written contract
11.Few fishermen have technology
12.Technology not yet implemented
Stakeholder of Fisheries
Business in Pangandaran
• The process related to stakeholders starts from the preparation stage. The fishermen
get information about the fish they captured today from friends in their fishermen
group or cooperatives. Some fishermen still use intuition to catch fish. This has the
potential to make fishermen become losers because the accuracy of intuition is very
low and the dynamics that occur in Indonesian waters make sea conditions of today
not the same as those of tomorrow.
• Fishermen also have to experience losses that are not slight because sailing requires
millions of rupiahs of capital. Gasoline used by fishermen is also affected by
government policy in terms of pricing. The expensive gasoline prices are one of the
toughest problems experienced by fishermen. The equipment used while sailing also
depends on government policy. The government does not permit some fishing gear
and fish types. This reveals how big a role the government has in this fishery
industry.
Stakeholder of Fisheries
Business in Pangandaran
• The process related to stakeholders starts from the preparation stage. The fishermen
get information about the fish they captured today from friends in their fishermen
group or cooperatives. Some fishermen still use intuition to catch fish. This has the
potential to make fishermen become losers because the accuracy of intuition is very
low and the dynamics that occur in Indonesian waters make sea conditions of today
not the same as those of tomorrow.
• Fishermen also have to experience losses that are not slight because sailing requires
millions of rupiahs of capital. Gasoline used by fishermen is also affected by
government policy in terms of pricing. The expensive gasoline prices are one of the
toughest problems experienced by fishermen. The equipment used while sailing also
depends on government policy. The government does not permit some fishing gear
and fish types. This reveals how big a role the government has in this fishery
industry.
Stakeholder of Fisheries
Business in Pangandaran
• Furthermore, from the licensing stage to setting sail, the fishermen must report when
they want to sail in the ocean more than four miles. There is an exception for the
fishermen who only use the two GT boat below and only sail within four miles’ radius.
• When sailing, fishermen need technology that can show the fish under water in real
time. Stakeholders such as meteorology agencies, universities and other research
organizations can support this. The technology used by a little fisherman in
Pangandaran is Fish Finder, which serves as the radar of the number of fish in the
water.
• When the fishermen finish sailing, the catch will be assisted and lifted by the
auctioneer. Then the seafood will be sorted and auctioned at the fish auction. All the
catches are sold on that one day. The place of fish auction serves as a fish price
controller to occur a fair transaction between fishermen and small tradesmen and also
record local fish sales.
Stakeholder of Fisheries
Business in Pangandaran
• However, the auction place in Pangandaran has a price that tends to
be high and stable. This triggers the fishermen who come from
Cilacap and around Pangandaran to sell in Pangandaran and who
make the supply of fish in Pangandaran become high. There are 12
stakeholders of Fisheries Business in Pangandaran.
Stakeholder of Fisheries
Business in Pangandaran
• Fisherman
• Fishermen are the main actors of the fishery business as they are the main
supplier of products. They have many limitations, particularly capital.
• Fishermen are stakeholders who have a role as a major supplier in this
industry. Fishermen produce raw materials that will be processed, used, and
delivered to consumers. But fishermen have limited capital that will affect
their income and production amount. In addition, the limitations of capital
also make them unable to feel the technology that will help them in the
search for fish. This shows less synergy between stakeholders to advance the
Indonesian fishery industry.
Stakeholder of Fisheries
Business in Pangandaran
• Local Fishermen Association
• Groups of fishermen have a role to shelter all fishermen, either members of
the cooperative or non-cooperative members, both ship owners, as well as
crew members. They choose positions based on their own ranking system.
The purpose of making a fishing group is to exchange pertinent information
about fish seasons, fishing spots, government policies, family of fishermen,
fish prices, and so on. Groups of fishermen also facilitate communication
between fishermen and cooperatives.
• Fishermen groups serve as a container of aspirations for fishermen. This
group also functions to establish a close relationship between the fishermen.
Stakeholder of Fisheries
Business in Pangandaran
• University
• The role of universities in the fishing industry is to conduct research that will
be used as a support for fisheries ministry research, which will be used as a
reference for government decision making on the fishery industry
• Universities work together with cooperatives to advance fisheries by
conducting joint training and research. The existence of the university will
provide opportunities to the fishing industry
Stakeholder of Fisheries
Business in Pangandaran
• Government
• The role of government in the fishery industry in Pangandaran is as an entity that monitors the dynamics of the fishery industry in
Pangandaran. After conducting monitoring, the government makes appropriate regulations to improve the welfare of fishermen
with regard to technology, fishing gear, catch type, sailing license, fishing area, and the role of each government-related institution.
The government also provides appropriate assistance to the fishermen to continue to produce fish and contribute to the export of
state commodities. The government also provides appropriate training for fishermen to have better capabilities in sailing.
• The government also made a regulation of the minimum size of captured of sea creatures. This is done to maintain the
sustainability of natural resources in the Pangandaran sea. Certain kinds of fishing gear are not allowed for catching fish for causing
overfishing. Coral reef maintenance is encouraged to provide food and habitat for the fish in Pangandaran that will maintain the
potential fishery in Pangandaran, which is the main livelihood for the local population. While the budgets set by the ministry of
fisheries and marine in 2017 are attached in appendix 1. From the budget plan of the ministry, it can be seen that Pangandaran is
included in the areas that receive assistance for fishing vessels under 5 GT, but does not get ship assistance with capacity of 30 GT,
70 GT, or 100 GT. Pangandaran also receives assistance in the form of fishing gear and fishing insurance.
• The government is only to establish the policies, provide guidance and facilities, and protect and control all cooperative activity.
The role of the government is important to develop the cooperative and improve the economy of the local people; the government
cannot realize this itself. The role of the community is also needed so that the government's plans can be realized well.
• In brief, the role of the government is to monitor the dynamics of the fishing industry, create regulations that help to promote the
welfare of the Pangandaran community, provide assistance related to technology and information, and provide training useful for
fishermen to hone their ability to raise production capacity via cooperative the legal entity.
Stakeholder of Fisheries
Business in Pangandaran
• Customers
• Existing customers in the fishing industry can be categorized as direct or indirect.
Direct customers are tradesmen registered as members of the cooperative who
buy fish directly at the fish auction. These tradesmen are businessmen who will
sell fish fisherman products to third parties who are bound by agreement. There
also are tradesmen who make transactions for sale in their own restaurant.
Customers at the fish auction will price competition to get the fish they need to
meet their contract quota. Those tradesmen are agents of fish suppliers for fish
exporting companies. There are also tradesmen who sell their fish in the local fish
market.
• Customers are the spearhead of fishery marketing. Tradesmen in fish auctions are
the main customers because they buy directly and spend the fish produced by
fishermen on the day they sell the fish products.
Stakeholder of Fisheries
Business in Pangandaran
• Bakul/Juragan/Middleman
•?
Stakeholder of Fisheries
Business in Pangandaran
• Exporter
• The exporter is a channel of bakul to the international market. In this business,
the exporter also provides financial services for bakul. Exporters buy fish and
shrimp from bakul and then sell to buyers (importer). For the international
market, the exporter distributed the products via a big port (Jakarta), and the
distribution used ships. Usually exporters already have MoUs/contracts with
bakul, and their contents of quantity and quality are mutually agreed upon.
Exporters have a large cooling system to maintain the quality of the fish that will
be sent; after the products sent by the bakul are checked, they are packed and
sent through the port of Tanjung Priuk. In the harbor there are additional checks
of catch documents and permits related to fishery export. Usually exporters
send orders to various countries such as Thailand, Japan and the United States.
Problem
• What is the stakeholder analysis of fisheries business in Pangandaran?
To provide information role and influence of each stakeholder to
fishery business, analyzing and mapping each strength and role can
help to assess whether the stakeholder should be incorporated into
the collaboration list or to be aware of, or should be ignored.
• What would be the strategy that KUD Minasari formulated to improve
the business condition? The KUD Minasari’s management certainly
has its challenges cut out for it.

 
Stakeholder Analysis1. Players: These are the high-power, high-
interest individuals with whom you will
High want to collaborate and keep fully engaged.
2. Subjects: These are the low-power, high-
Context interest stakeholders who can offer great
Players insights and ideas for the project but whom
Setters you don’t need to always say yes to.
3. Context-setters: These high-power, low-
Power

interest stakeholders (heads of

departments, for example) can have a lot of
influence over the project but don’t want to
be involved in the details.
4. Crowd: Finally, the low-power, low-interest
Crowd Subject stakeholders are called the crowd. These
individuals will require some ongoing
communication about the project’s progress
Low but probably the least of all stakeholders
Low High
Interest
Stakeholder Analysis
High

  • Fisherman
Context
Players
Power Setters

Crowds Subjects
• University

Low
Low High
Interest
Stakeholder Analysis
High operational cost
• Procurement and supply for gasoline is bad

No storage
• Storage is important, not only to store excess fish, but also to store gasoline

No proper storage

There are debts from previous management

• Debts from previous management has to be solved immediately to free fishermen from debt. So fishermen can allocate their fund for other purpose

Price is too high for customer

Quality mindset and communication

Technology not yet implemented

• Technology is vital to increase efficiency of fishermen

Few fishermen has technology

Unfair measurement

Customers are limited to cooperative members

• Cooperative needs to expand the scope of potential customer to increase revenue

Transportation not yet fully utilized

No written contract (HR)

Interest