Resource Allocation Optimization for Pond-Based Farming in Rembang Regency, Indonesia

¹ Department of Agribusiness, Universitas Muhammadiyah Yogyakarta, 55183 Indonesia
² Information Technology Department, Universitas Muhammadiyah Yogyakarta, 55183 Indonesia
³ Department of Agribusiness and Bioresources Economics, Faculty of Agriculture, Universiti Putra Malaysia, 43400 Malaysia
⁴ Marketing Department, Universiti Sains Islam Malaysia, 71800 Malaysia
⁵ Department of Sociology, Universitas Widya Mataram, 55132 Indonesia
⁶ Master student in Agriculture Economic, Faculty of Agriculture, Universitas Gadjah Mada, 55281 Indonesia
⁷ Department of Plantation Management, Politeknik LPP Yogyakarta, 55222 Indonesia
⁸ Medical Laboratory Technology, Universitas Muhammadiyah Kudus, 59316 Indonesia

^* Corresponding author: aris.sw@umy.ac.id

Abstract

Salt production in Rembang Regency plays a strategic role in supporting coastal economic resilience; however, it still faces fluctuations in production and prices due to climate variability and limited resource efficiency. This study aims to determine the most optimal pond farming strategy to enhance the economic sustainability of salt farmers. A quantitative approach was applied using the linear programming method to analyze the combination of salt, vannamei shrimp, and milkfish under two seasonal conditions, dry and rainy seasons, considering constraints in land, capital, and labor. The results show that during the dry season, optimal resource allocation is achieved through salt production with a maximum profit of IDR 47,864,060, while during the rainy season, the optimal combination is obtained through milkfish, vannamei shrimp polyculture, generating a profit of IDR 4,707,023. Labor emerged as the most critical factor, with the highest shadow prices (IDR 64,420 and IDR 1,886.36), indicating that labor efficiency significantly affects profitability. The policy implication of this study emphasizes the importance of implementing season-based commodity rotation and enhancing labor efficiency through capacity-building programs as adaptive strategies to strengthen the economic resilience of coastal salt farmers.