Government Policy Intervention Enhancing Soybean Industry Competitiveness in Wonogiri: A Policy Prioritization Study

. This research aims to assess the role of government policy intervention in enhancing the competitiveness of the soybean industry in Wonogiri Regency, Indonesia. In the face of challenges such as price fluctuations and supply chain limitations, this study employs the Analytic Hierarchy Process (AHP) method to identify key priorities for policy intervention. Data collected through interviews with 25 stakeholders, including policymakers and industry practitioners in September 2022, provide insights into the hierarchy of criteria and alternative strategies. The findings reveal that effective supervision management stands as the top priority criterion, emphasizing the need for robust government oversight in the soybean supply chain. Furthermore, within the hierarchy of alternative strategies, competitiveness support policy emerges as a critical priority, underscoring its significance in adding value to local soybean business activities and fostering global competitiveness. In conclusion, this research establishes that government policy intervention, particularly in the domains of supervision management and competitiveness support policy, has the potential to significantly enhance the competitiveness of the soybean industry in Wonogiri Regency. By focusing on these strategies, the government can positively impact the welfare of industry practitioners and drive economic growth in the region. This study contributes valuable insights for policymakers and industry stakeholders seeking to strengthen the soybean industry's position in the local and global markets.


Introduction
Soybean is an agricultural commodity that plays an important role in meeting the food and animal feed needs in Indonesia.Wonogiri Regency is one of the soybean production centers in Central Java (1).However, the quality of soybean supply chain management implementation in Wonogiri Regency is still low (2).This can be seen from the low quality of soybean products, low productivity of farmers, and low competitiveness of Wonogiri's soybean products in the market (3).The implementation of soybean supply chain management system in Wonogiri Regency is a process that involves various stakeholders in The involvement of government intervention in soybean supply chain management necessitates an evaluation of supply chain management policies (13).The interconnectedness among variables causes issues faced by policy implementers to become complex, thereby requiring market intervention that influences multiple factors simultaneously through policy implications (14).
Government policies that have been implemented in soybean supply chain management in Wonogiri include several aspects.First, the government has implemented a policy of strict supervision of the entire supply chain process, from production to distribution.This supervision is carried out to ensure that all actors in the supply chain follow the rules, maintain product quality, and apply established standards.In addition, the government also implements support policies for soybean industry players in Wonogiri.This support includes technical assistance, training and facilities to improve their productivity and product quality.The government also provides fiscal incentives, such as tax breaks or subsidies, to encourage investment and growth of the soybean industry in the area.Another policy implemented by the government is the development of infrastructure that supports the soybean supply chain.This includes the construction of roads, ports, and other transportation facilities that facilitate the flow of soybean production and distribution.These policies have been in place for the past five years, since 2018.The government has consistently evaluated and adjusted the policies in line with industry developments and challenges.This long period of time allows these policies to have a more significant impact and result in improving the competitiveness and growth of the soybean industry in Wonogiri.
Rigorous supply chain performance evaluation is conducted to identify and rectify shortcomings, making implementation more competitive and effective in supply chain management strategies (15).Public policy analysis aims to provide recommendations to assist policymakers in solving public problems.It is used as consideration or input for policymakers (16).Supply chain management performance analysis has been proven to enhance profitability in broiler farming (17).Studies on supply chain performance evaluate multidisciplinary topics from various perspectives and are based on decision-making techniques using a multi-criteria approach through the utilization of the Analytic Hierarchy Process (AHP) (18).AHP aids in analyzing the theoretical aspects of a problem and breaking them down into a hierarchical structure to serve as a decision prioritization tool in various expert-based fields (19).Therefore, this study aims to formulate and identify implementation strategies for government policy interventions in soybean supply chain management.AHP is used in the research to obtain priority issues for evaluating government policy interventions in the soybean supply chain.Based on the background of the problem, this research examines the role of government policies in soybean supply chain management in Wonogiri Regency, as well as the efforts needed to enhance comprehensive competitiveness in the soybean industry.Thus, this research can provide a significant contribution in addressing challenges and opportunities in improving the competitiveness of the soybean industry in Wonogiri Regency.

Data collection
This research was conducted from March to September 2022.The selection of respondents was purposive, targeting stakeholders in the soybean industry.The respondents in this study consisted of experts, including policymakers, analysis teams involved in soybean supply and demand, and soybean farmers and entrepreneurs.The selection of respondents was based on their expertise and suitability for analysis using the AHP approach.By interviewing experts involved in the soybean supply chain as respondents, expert judgment on the hierarchy criteria will be based on factual information derived from the experiences of these expert respondents.

Data analysis
The AHP (Analytic Hierarchy Process) model is used because it has several advantages that are relevant in the context of this research.First of all, AHP is a method that can address the complexity in decision-making by considering a hierarchy of different criteria.In this study, AHP is used to identify priorities for government policy interventions in soybean supply chain management.With its hierarchical approach, AHP helps to establish a clear and systematic structure in the assessment of different criteria.Furthermore, AHP allows quantitative weighting of relevant criteria.By assigning weights to each criterion, AHP can quantify and account for the level of importance of each criterion in decision-making.This helps create a more accurate and objective understanding in assessing the various aspects involved in government policy interventions.In addition, AHP also combines qualitative and quantitative approaches.In this study, data was obtained through interviews with 25 respondents, including policy makers and industry practitioners.This combined approach allows the utilization of expert views and assessments as well as numerical data to prioritize government policy interventions.Another advantage of AHP is its ability to handle complexity and uncertainty in decision making.The method allows for adjustments and changes in the hierarchy of criteria and weights as additional information is obtained or situations change.Validation of the AHP model involves several steps to ensure the accuracy and credibility of the results.First, in the validation stage, it is necessary to consult and discuss with experts or related experts.Experts can provide input and evaluation of the hierarchical structure of the criteria that have been compiled as well as the weights that have been given to each criterion.
Furthermore, AHP model testing can be done using previously collected data or by conducting simulations.This trial aims to see the extent to which the AHP model can produce consistent and reliable results.In addition, in validating the AHP model, sensitivity analysis can also be carried out to test the extent to which changes in the weights of the criteria can affect the final results.This can help identify the criteria that are most sensitive to change and ensure that the results are stable enough to be maintained under various scenarios.During the validation process, it is also important to consider the assumptions and constraints used in the AHP model.Double-checking these assumptions can help ensure that the model used is appropriate for the conditions and objectives of the study.After going through careful validation stages, the AHP model can be considered valid and reliable for use in analyzing government policies in soybean supply chain management in Wonogiri.Careful validation will increase confidence in the results and conclusions of the research.
Hierarchy Process (AHP).AHP is used to analyze the theoretical aspects of a problem and break it down into a hierarchical structure to serve as a decision-making prioritization tool in various fields (19).The selection of respondents was based on their expertise and suitability for analysis using the AHP approach.The detailed justification of respondents' expertise is presented in Table 1.All respondents represent national-level institutions or organizations with a comprehensive understanding of their respective fields related to the soybean supply chain.Next, the hierarchy of alternative strategy dimensions is prepared based on Focus Group Discussions (FGD) with stakeholders.The hierarchy for determining the strategies is shown in Figure 1.Fiscal Incentive Policy: Providing fiscal incentives such as tax breaks or subsidies to soybean industry players can encourage investment and industry growth.These incentives can help improve the competitiveness of soy industry players in local and international markets.After explaining soy supply chain policies, you can relate them to overall soy competitiveness.The implementation of these policies can help improve the competitiveness of local soy products, strengthen the soy industry's position in the market, and increase regional economic contributions.In addition, measures that support efficiency and quality in the supply chain can also help soy industry players compete more effectively at the national and international levels.
The fertilizer subsidy policy is not directly related to the soybean industry supply chain.It is more related to on-farm agricultural support, such as fertilizer assistance for farmers to increase crop yields.While the fertilizer subsidy policy can have an impact on soybean production, it is more focused on the production stage at the farm level and not on the overall soybean supply chain aspect.
Supply Chain Infrastructure Development Policy: Invest in infrastructure such as roads, ports, and distribution facilities to facilitate the flow of soy products from farmers to consumers.Product Quality and Safety Monitoring Policy: This policy aims to ensure that all stages in the soybean supply chain meet established quality and safety standards.Industry Support Policy: Support policies, such as technical assistance, training, and access to financing, can help soy industry players improve their competitiveness.Market Strengthening Policies: Policies that encourage market access, exports, and promotion of local soy products can help improve the competitiveness of the soy industry at the national and international levels.

Description of soybean supply chain management
Government intervention in the soybean supply chain has encompassed almost every aspect, from upstream to downstream.The soybean supply chain refers to a series of processes and activities involved in the production, processing, distribution, and marketing of soybeans from farmers to end consumers.It involves various actors and stages in meeting market demand.Here is a general description of the soybean supply chain in Wonogiri regency: Agricultural Production: The supply chain starts with farmers who are responsible for soybean production.Farmers cultivate, care for, and harvest soybean plants.They employ agricultural methods, including fertilization, pest control, and irrigation, to ensure healthy growth.Processing and Manufacturing: After harvesting, soybeans are collected and processed in processing plants.This process includes separating the soybean seeds from the pods and husks, cleaning the seeds, drying, milling, and soybean oil extraction.Processing plants may also produce soybean-based processed products such as tofu, tempeh, soy milk, or other soybean products.Distribution and Storage: Processed soybean products are packaged and distributed to wholesalers, suppliers, and retailers.The products may be stored in warehouses or storage facilities before being transported to their final destinations.During distribution, soybean products need to be preserved to maintain freshness and quality.Marketing and Sales: Soybean products are introduced to the market by marketers and sellers.They may market the products directly to consumers or through retail networks.Marketing strategies involve promotion, branding, pricing, and sales activities to attract consumer interest.End Consumers: The soybean supply chain concludes with consumers who purchase and use soybean products.This can include the use of soybeans in cooking, beverages, supplements, and various food products.Consumers can also provide feedback on products to producers or suppliers.

Calculation results of analytic hierarchy process
Government policy intervention becomes crucial in regulating the governance of the soybean supply chain system.One of the government's roles is to ensure price stability of soybeans through provision, circulation, and supervision of all related activities, aiming to prevent losses for both producers and consumers, and to promote the effectiveness and efficiency of the supply chain, which is a key determinant of business success (20).Based on the above AHP analysis results, Alternative B has the highest relative score with a value of 0.296, followed by Alternative C with a value of 0.349, and Alternative A with a value of 0.355.Therefore, in order to enhance the competitiveness of the soybean industry in Wonogiri Regency, the government should focus on implementing policies and interventions that support Alternative B and Alternative C, which have been identified as the best choices based on the AHP analysis.Data analysis using the AHP method helps identify important criteria and determine the relative weights for each criterion.Furthermore, this method also assists in comparing existing alternatives and determining their priority order based on relative scores (21).Thus, the Wonogiri Regency government can make more informed and effective decisions regarding government policy interventions in soybean supply chain management to enhance its competitiveness.
Based on the AHP analysis results, there are several points to discuss in order to enhance the competitiveness of the soybean industry through government policy interventions in supply chain management in Wonogiri Regency: Production Efficiency: Production efficiency is the criterion with the highest priority weight.This indicates that improving production efficiency is a key factor in enhancing the competitiveness of the soybean industry (22).To achieve this, the government can provide support in terms of sufficient land availability, access to modern agricultural technology, improving the quality of the workforce, and providing high-quality agricultural inputs.Quality Control: The quality control criterion also has a significant priority weight.This indicates the importance of maintaining the quality of soybean products to meet the required standards for both domestic and export markets.The government can develop policies and infrastructure that support strict quality supervision, standardized testing processes, as well as pest and disease control in soybean crops.
Transportation Infrastructure: Transportation infrastructure has a relatively high priority weight.The availability of good road networks, adequate storage facilities, and efficient logistics will affect the effectiveness of soybean product distribution and delivery.The government can play a role in improving transportation infrastructure in the area, such as road repairs, constructing storage warehouses, and optimizing the logistics system.
Market Access: Good market access, smooth distribution, and effective marketing and promotional efforts will help enhance the competitiveness of the soybean industry.The government can collaborate with relevant stakeholders to expand markets, improve distribution to wider regions, and conduct marketing and promotional activities to increase consumer awareness of soybean products.
Government Support: Government support has a significant priority weight.The government can provide relevant subsidy policies, such as fertilizer subsidies or subsidies for superior seeds, to assist soybean farmers.Training programs for farmers in the use of modern agricultural techniques can also be provided to enhance their knowledge and skills.Technical assistance needs to be provided as well, such as mentoring in business management and technology utilization.
Sustainability: Although it has a relatively low priority weight, sustainability remains a factor that needs to be considered.Implementing environmentally friendly farming practices, sustainable natural resource management, and the use of renewable energy can help enhance the long-term competitiveness of the soybean industry.The government can encourage and provide incentives to farmers to adopt environmentally friendly farming practices and maintain environmental sustainability.
This research, based on the AHP analysis, provides initial guidance in determining the priority of policy interventions.However, in implementing policies, the government needs to involve various stakeholders such as farmers, industry players, academics, and the community, and consider the local conditions and dynamics existing in Wonogiri Regency

Conclusion
Based on the Analytic Hierarchy Process (AHP) analysis, this study underscores several critical criteria requiring targeted government policy intervention to enhance the competitiveness of the soybean industry in Wonogiri Regency.These criteria, encompassing production efficiency, quality control, transportation infrastructure, market access, government support, and sustainability, serve as the foundation for effective policy formulation.Specifically, policies involving Supply Chain Supervision, Technical Support and Training, Infrastructure Development, and Fiscal Incentives emerge as pivotal instruments in driving industry growth.Notably, the study emphasizes the paramount importance of robust Supply Chain Supervision, demanding stringent regulations to ensure adherence to quality, safety, and regulatory standards across the soybean supply chain.Additionally, Competitiveness Support Policies are underscored as a priority, aimed at fostering industry advancement.These findings have profound implications for policymakers, as they illuminate the multifaceted nature of policy needs within the soybean industry in Wonogiri Regency.To bolster industry competitiveness, recommendations include expanding land availability, enhancing access to modern agricultural technology, reinforcing quality control mechanisms, improving transportation infrastructure, developing wider markets, and promoting sustainability.Moreover, this study underscores the necessity of stakeholder engagement, policy evaluation, and continuous monitoring for effective policy implementation.Ultimately, these policy interventions have the potential to bolster industry competitiveness, foster economic growth, and enhance the welfare of industry players in Wonogiri Regency.Future research endeavors should delve into the detailed implementation and impact assessment of these recommended policies, examining their long-term sustainability and the extent of their influence on the soybean industry's global competitiveness.

Table 1 .
Formatting sections, subsections and subsubsections The agricultural and industry organizations representing the interests of farmers and stakeholders in the soybean industry in Wonogiri District are also important stakeholders in this research.They can provide insights into the challenges faced by the local soybean industry and provide input on policy interventions that can enhance competitiveness.The title is set in bold 16-point Arial, justified.The first letter of the title should be capitalised with the rest in lower case.You should leave 22 mm of space above the title and 6 mm after the title.

Table 3 .
Process Hierarchy Analysis Calculation Results

Table 4 .
Calculation of Relative Weight of Criteria

Table 9 .
Government Support

Table 11 .
Alternative Relative Score Calculation: