SWOT analysis and strategy formulation to increase the competitiveness of rice agriculture MSMEs, Pamijahan District, Bogor Regency

Abstrac. MSMEs are one of the important driving forces in the expansion of the national economy by contributing to GDP by 60.5 percent. Agriculture also has a big role in the national economy by contributing to 12.91 percent of GDP in the third quarter of 2022. Even so, the welfare of farmers is still relatively low. The welfare of farmers can be improved by increasing productivity and competitiveness. Therefore, this research was conducted to identify internal and external factors in order to improve the competitiveness of food crop subsector agricultural MSMEs and develop a technology adoption strategy. The research was conducted with literature studies and in-depth interviews with relevant experts processed using the IFE, EFE, IE, TOWS, and AHP matrices. The main weakness of Gapoktan Pamijahan is the age of farmers who are no longer productive, but its greatest strength is that all members receive direct guidance and supervision from the Region IV Agricultural Extension Center. The highest-rated external element affecting the main prospect is the development of agricultural technology, while Gapoktan Pamijahan's main difficulty is the lack of reliable agricultural digital infrastructure in the district. The priority strategy is the Youth Agritech Incubator.


Introduction
Micro, small, and medium enterprises (MSMEs) are important engines in national economic growth [1].Micro, small, and medium enterprises (MSMEs) play a crucial role in the economic landscape, particularly in developing economies, such as Indonesia, where they significantly contribute to the Gross Domestic Product (GDP) and employment [2].In Indonesia, MSMEs have exhibited remarkable performance, contributing 60.5 percent to the national GDP and accounting for 96.9 percent of total employment by 2022 [3].
Bank of Indonesia has grouped MSMEs' business units into seven sectors, among them agriculture [4].The agricultural sector in Indonesia contributes a huge contribution to GDP in the third quarter of 2022, reaching 12.91 percent [5], and also the most labourabsorbing sector compared to the other sectors of 29.76 percent or 38.23 million people working in the agricultural industry.The agricultural sector, which encompasses food crops, horticulture, plantation, and farm subsectors, is a significant area of operation for MSMEs, with the food crop subsector being the most labor-intensive, employing millions of people [6] as shown in Table 1.Despite the substantial contribution of the agricultural sector, the welfare of farmers remains a critical concern, and studies have emphasized the link between enhancing farmers' welfare and boosting productivity and competitiveness [7].* Corresponding author: linda@apps.ipb.ac.idIncreasing competitiveness in this sector is not only crucial for improving the livelihoods of farmers but is also essential for achieving broader developmental goals.The adoption of innovation and technological advancements in agriculture is pivotal for enhancing competitiveness, improving farmers' welfare, and achieving Sustainable Development Goals (SDGs) such as Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), and Industry, Innovation and Infrastructure (SDG 9).This underscores the importance of conducting a SWOT Analysis and Strategy Formulation to Increase the Competitiveness of agricultural MSMEs, particularly in the food crop subsector, as it can identify internal and external factors influencing competitiveness and develop comprehensive strategies for the adoption of technological innovations.The choice of Gapoktan Padi, Pamijahan, for this study is strategic due to its representative nature in the context of Indonesian agriculture, providing insights applicable to similar settings across the country [8].
This research aims to address the critical gap in understanding why farmers' welfare remains relatively low despite the substantial contribution of agriculture to Indonesia's economy.By exploring the dynamics of competitiveness and productivity in the agricultural sector and proposing strategic interventions, this study seeks to: 1) identify internal and external factors in order to increase the competitiveness of agricultural MSMEs in the food crop subsector and 2) develop a technology adoption strategy for agricultural MSMEs in the food crop subsector.The implementation of identified technologies and strategies is expected to provide both theoretical and practical insights, potentially transforming agricultural practices in the targeted region and beyond.

Time and location of research
Research was conducted both offline and online using the Zoom Meeting application, selected for its wide accessibility and reliable features that support interactive sessions and data recording.The online approach, while advantageous in terms of accessibility, also presented challenges such as potential connectivity issues and limitations in non-verbal communication assessment.The research spanned five months from July to November.The breakdown of this period is as follows: one month for proposal refinement, two months for data collection, one month for data analysis, and one month dedicated to writing the final report.The research was located in Pamijahan District, Bogor Regency, selected due to its significant status in agricultural production and productivity, providing a relevant and rich context for the study.

Method of collecting data
Data types included primary and secondary data.Primary data was obtained through in-depth interviews, employing purposive sampling among experts.Criteria for expert selection were: (1) expertise in agricultural technology, (2) established relationships with Gapoktan and farmers, and (3) affiliation with government institutions.These criteria ensured a comprehensive understanding of the agricultural landscape from diverse professional perspectives.The following is a list of experts who were sources for this research: Secondary data was sourced from literature studies focusing on agricultural MSME development strategies, prioritizing sources known for their academic rigor and relevance to the research topic.

Data analysis method
Data analysis was structured to address two primary objectives.The first objective used descriptive analysis derived from interview results and literature studies.For the second objective, a combination of TOWS analysis, IE (Internal-External) analysis, and AHP (Analytical Hierarchy Process) analysis were employed.TOWS analysis was used to identify strategic options by examining external opportunities and threats against internal strengths and weaknesses.IE analysis facilitated the evaluation of business strategies by considering internal and external factors, and AHP analysis, a structured technique for organizing and analyzing complex decisions, was conducted using Microsoft Excel and Expert Choice.These tools were chosen for their functionality in handling matrix-based calculations and decision-making processes.Ethical considerations, particularly in terms of consent and confidentiality, were rigorously upheld during data collection.To ensure the validity and reliability of the data, measures such as validity tests on the questionnaires and employing inter-rater reliability checks during interviews were implemented.

Internal and external factors of Gapoktan Pamijahan
Internal environmental analysis is an analysis that aims to identify the strengths and weaknesses of Gapoktan Pamijahan, while external environmental analysis is an analysis that aims to identify opportunities and challenges owned by Gapoktan Pamijahan.
Based on the internal environmental analysis that has been carried out, the strengths of Gapoktan Pamijahan are: A) Lowland rice is the superior commodity of Gapoktan Bogor Regency [8]; B) The agricultural land owned by GAPOKTAN Bogor Regency is very large [8]; C) Gapoktan Bogor Regency produces high quality rice [9]; D) All Gapoktan members receive direct guidance and supervision from the Agricultural Extension Center [10]; E) There is a pesticide innovation by Gapoktan Pamijahan.Weaknesses in Gapoktan Pamijahan, namely: F) Limited capital for Gapoktan farmers in Bogor Regency [11]; G) Age of nonproductive gapoktan farmers in Bogor Regency [12]; H) Organic Rice Certification has expired; I) Limited adoption of technology by Gapoktan Bogor Regency [12].
Based on the external environmental analysis that has been carried out, the opportunities that Gapoktan Pamijahan has are: A) Strong government support for programs to explore the potential of agricultural technology [11]); B) Utilization of rice by-products [13]; C) Agricultural technology is increasingly developing [14]; D) Food Self-Sufficiency Program [15]; E) Facilitation of Agricultural Insurance.The challenges faced by Gapoktan Pamijahan are: F) During the rainy season, pest attacks are difficult to control [16]; G) Limited reliable agricultural digital infrastructure in Pamijahan District [17]; H) Fluctuations in rice prices [18]; I) Changes in government policies and regulations [18]; J) The regional landscape in Pamijahan District is prone to landslides [19].

IFE and EFE matrix analysis
The IFE and EFE Matrix analysis was prepared after identifying internal and external factors.After the key factors are obtained, then weighting and rating are carried out on these factors.The weight and rating of each internal factor was determined by the five experts Table 3, Table 4, Table 5, and Table 6.

Internal Strategies Factor [A] [B] [C] [D] [E] [F] [G] [H] [I] Total Weight
[A]  The results of the Internal Factor Evaluation (IFE) calculation can be seen in Table 7.The IFE matrix calculation obtained a total score of 2.79, this means Gapoktan Pamijahan responding well to these internal factors by utilizing or responding to the strengths they have to overcome existing weaknesses.The strength is considered most important, namely that all Gapoktan members receive direct guidance and supervision from the Region IV Agricultural Extension Center with the highest score, 0.582.The main weakness of Gapoktan Pamijahan is the non-productive age of Gapoktan Pamijahan farmers with the lowest score, 0.114.The results of the Internal Factor Evaluation (EFE) calculation can be seen in Table 8.The EFE matrix calculation, a total score of 3.07 was obtained, this means that Gapoktan Pamijahan responds well to the opportunities it has and effectively the company takes advantage of current opportunities from external threats.The main opportunity that can be utilised by Gapoktan Pamijahan is that agricultural technology is increasingly developing with the highest score, 0.504.The main challenge faced by Gapoktan Pamijahan is the limited reliable agricultural digital infrastructure in Pamijahan District with the smallest score, 0.115, which is the lowest score in the threat factor.Source: Processed data (2023).

IE Matrix Analysis (Internal-External)
The IE matrix functions to position an organisation or regional capability in nine cells.The nine cells are grouped into three quadrants which can help determine the right strategy to be applied by Gapoktan Pamijahan.The IFE score obtained from the IFE matrix analysis is 2.79.This score falls into the medium category (2.00 -2.99) in the IFE total weight score.The EFE score obtained from the EFE matrix analysis shows the number 3.07.The EFE score of 3.022 is included in the high category (3.00 -4.00) in the total EFE weight score.The results of the IE Gapoktan Pamijahan matrix analysis can be seen in Figure 1.Based on Figure 1, the position of Gapoktan Pamijahan is in area II (Green).In this position, Gapoktan Pamijahan is suitable for using the Growth and Build Growth strategy (concentration through horizontal integration).This shows that the internal factors at Gapoktan Pamijahan are not yet strong, so Gapoktan Pamijahan needs to involve other parties in efforts to increase coordination with all interested parties in smooth operations.

Formulation of the MSME strategy for the agricultural sector in Bogor Regency
The strategy was formulated using TOWS matrix analysis.Then, the strategies that have been formulated are given priority weighting using AHP analysis.

TOWS matrix analysis
Based on the strengths, weaknesses, opportunities and threats obtained through internal and external factors, strategies can be formulated.The strategy formulation is adjusted to the results in the IE matrix.Strategy formulation is based on four types of strategy, namely S-O strategy, W-O strategy, S-T strategy, and W-T strategy.The TOWS Matrix for the Development of Gapoktan Pamijahan can be seen in Table 9.
Based on Table 9, the Strength-Opportunities (S-O) Strategy that has been prepared is Collaboration with Other Farmer Groups.The Weakness-Opportunities (W-O) strategy that has been prepared, namely Rejuvenation of Gapoktan Members (W2,O3); and Collaborating with local communities and non-governmental organisations to jointly market organic products and support sustainable agriculture (W4, O4).The Strengths-Threats (S-T) strategy that has been prepared, namely Joint Market Development for High Quality Rice (S1, T2).The Weaknesses-Threats (W-T) strategy that has been prepared is the Youth Agritech Incubator (W2, T3).

Analytical Hierarchy Process (AHP) analysis
In the strategic prioritisation process, the Process Hierarchy Analysis (AHP) method with Expert Choice 11 software is used to determine the weighting and best alternative strategy that will be chosen by the company.The hierarchical structure is arranged into six levels, namely main objectives, factors, subfactors, actors, goals and strategies, taking into account the relationship between elements and the focus to be achieved.The respondents selected were experts who were considere to have competence in rice agribusiness and planning in Pamijahan District.In the SWOT analysis that has been carried out, there are eight strategies given based on literature studies and interviews conducted at Gapoktan Pamijahan.All these strategies are then included in the AHP process to determine the main strategy.The AHP hierarchical structure can be seen in Figure 2.  The weighting results using Expert Choice show that each factor, subfactor, actor, goal and strategy variable has a CR value of 0.04 or ≤ 0.1 and it can be concluded that the questionnaire has met the consistency value limit so that the data is declared valid.The results of the AHP weighting analysis from pairwise comparisons for each factor, subfactor, actor, goal and strategy variable can be seen in Table 10.Based on Table 10, the priority strategy component is the Youth Agritech Incubator with a eight of 0.393.This is emphasized because young people have the ability to absorb information more quickly and practise new things [20].This strategy can be implemented in collaboration by the government with technology incubators to create programs that support young entrepreneurs in developing and implementing technological solutions for overcome the problem of limited knowledge and an ageing population among farmers.

Conclusion
This study aimed to enhance the competitiveness of Rice Farming MSMEs in Pamijahan District, Bogor Regency, by identifying pivotal internal and external factors and formulating effective strategies for technology adoption.The research objectives were to (1) ascertain these factors and (2) develop a technology adoption strategy.
Key findings revealed the most significant internal strengths and weaknesses of Gapoktan Pamijahan, with the direct guidance and supervision from the Region IV Agricultural Extension Center being a vital strength, while the non-productive age of farmers emerged as a major weakness.Regarding external factors, the development of agricultural technology posed a major opportunity, whereas the lack of reliable agricultural digital infrastructure in the district was the primary challenge.These findings directly align with this research research objectives, highlighting the internal and external elements that influence the competitiveness of Rice Farming MSMEs.
For Gapoktan Pamijahan, these insights imply a need to leverage their established guidance systems while addressing the age-related productivity challenges.Utilizing technological advancements and overcoming digital infrastructure limitations are critical for their progress.
The proposed priority strategy, the Youth Agritech Incubator, is pivotal due to its focus on rejuvenating the agricultural workforce and integrating advanced agricultural technologies.This strategy directly addresses the internal weaknesses and external challenges, thereby enhancing the overall competitiveness and welfare of Rice Farming MSMEs in the district.
This research establishes a clear link between the adoption of agricultural technology and the improvement of farmers' welfare in Pamijahan District.The Youth Agritech Incubator, by fostering a tech-savvy, younger workforce, is anticipated to significantly contribute to this upliftment.
Future research should explore the long-term impacts of technology adoption strategies on farmer welfare and the scalability of such models to other agricultural contexts.Additionally, investigating the role of digital infrastructure development in supporting these strategies could provide further insights.
This research contributes to the understanding of agricultural MSME competitiveness, particularly in areas with similar dynamics as Pamijahan District.It underscores the importance of strategic planning in technology adoption for enhancing productivity and competitiveness in the agricultural sector.
In conclusion, this research calls for a proactive approach in embracing technological innovations within the agricultural sector, emphasizing the need for continuous adaptation and strategic planning to improve farmers' welfare and competitiveness in the global market.This research lays a foundation for future studies and policy-making, aiming to transform the agricultural landscape in similar regions.
Internal factors and external factors were obtained from the results of literature studies and interviews with experts who are considered to have competence in rice agribusiness and planning in Pamijahan District.Then, proceed with analysis using the Internal Factor Evaluation (IFE), External Factor Evaluation (EFE) matrix, and the internal-external strategic position model (IE Matrix).The IFE and EFE matrices relate to the relative importance of strength, weakness, opportunity and threat factors based on the results of internal and external environmental analysis at Gapoktan Pamijahan.The IE matrix relates to the strategic position of Gapoktan Pamijahan.

Table 1 .
Absorption of agricultural labour by subsector.

Table 4 .
Weight of external factors of Gapoktan Pamijahan.

Table 5 .
Average rating of internal factors of Gapoktan Pamijahan.
Factor Level of Importance Number of Respondent Averagge Average Value

Table 6 .
Average rating of external factors of Gapoktan Pamijahan.

Table 7 .
Results of IFE Analysis of Gapoktan Pamijahan.

Table 8 .
Results of EFE Analysis of Gapoktan Pamijahan.

Table 10 .
Results of combined AHP weighting analysis.