Authors:
Janita Sembiring Meliala
1
;
Musa Hubeis
2
;
Siti Jahroh
3
and
Agus Maulana
3
Affiliations:
1
Bogor Agricultural University, Indonesia
;
2
Department of Master Small Medium Enterprise Development, Bogor Agricultural University, Indonesia
;
3
School of Business, Bogor Agricultural University, Indonesia
Keyword(s):
Aggregators, Business Models, Disruption Era, ICT, Intermediaries
Abstract:
This paper reviews the literature on the basic concepts of aggregator business in Indonesia’s agricultural sector. An aggregator business is essentially an intermediary that utilises information communication technology (ICT). Intermediaries in the Indonesian agricultural sector are known as Tengkulak, Pengepul, and Bandar all of which carry a negative image. The length of the supply chain associated with intermediaries results in a decrease in farmers‘ profits. This research reviews the relevant publications, including articles published in referenced books and journals, along with definitions of intermediary and business aggregators in business disruption. The phenomenon of disruption initiated the birth of a new business intermediary model, namely the business aggregator.This research was conducted in 12 business aggregators based in Indonesia using in-depth interviews with their owners and with a deputy assistant team from the coordinating ministry for the economy to get an alter
native business aggregator model as an intermediary.There are six alternative aggregator business models comprising information sources (clearinghouses), connector (spark-plug), communities (village-preneur), food hubs, and upstream efficiency. This aggregator business will cut the supply chain and increase farmers‘ profits.
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