MIMBAR, Vol. 33, No. 1 s (June, 2017), pp. 1-10 1 Accredited by RistekDikti, No.040/P/2014, Valid 18-02-2014 Until 18-02-2019 Received: October 28, 2016, Revision: March 30, 2017, Accepted: May 19, 2017 Print ISSN: 0215-8175; Online ISSN: 2303-2499. Accredited by DIKTI. SK Kemendikbud, No.040/P/2014, valid 18-02-2014 until 18-02-2019, Indexed by DOAJ System Dynamics Modeling on Integrated Supply Chain Management of Potato Agribusiness 1 LUKMAN HAKIM, 2 TOMY PERDANA 1 Fakultas Pertanian, Universitas Syiah Kuala, Jl. Tgk. Hasan Krueng Kalee No. 10, Banda Aceh 23111 2 Fakultas Pertanian, Universitas Padjadjaran, Jl. Raya Bandung, Sumedang KM 20, Jatinangor 45363 email: 1 lukman.hakim.sp.mp@gmail.com; 2 tomyp1973@yahoo.com Abstract. The objectives of this study is to design a model of integrated supply chain management of potato agribusiness in an efort to increase revenue and bargaining position of farmers in Aceh Province. The method applied to achieve these objectives was the methodology of system dynamics. Formulation of the models was conducted by using Vensim DSS Software, followed by simulation. The result of this study showed the role of fve major scenarios which were important to actualize the integrated supply chain management of potato agribusiness in Aceh Province, those were: scenario 1, increasing the productive land area, resulting in the increasing of production volume; scenario 2, usin g the certifed potato seed named “umbi G2”, generating the higher level of production; scenario 3, providing the certifed potato seed based on the needs, showing that the quantity of production increased; scenario 4, shortening the payment receivables interval of farmers and cooperatives, which showing the increasing of cash amount; scenario 5, doing certifcation to the potato from synergistic partnerships farmers, showing the increasing of acceptance, proftability, R/C, and cash. Keywords: system dynamics, supply chain management, potato agribusiness Introduction Food has a promising business prospects over time and is a sustainable business in the future. The issue of food is one of the national problem. Food supplies are very relevant to the welfare issues and survival of the Indonesian nation. The Government awares that in order to face the challenges of the global market, Indonesia must change the pattern of subsistence farming developed into a service oriented business. Advanced agriculture-oriented businesses require high efficiency, market-oriented to quality and competitive prices in sufficient quantity, timely continuity of supply for the domestic market and international market. Supply chain management of agricultural products is different with the supply chain management for other manufactured products for some of the typical characteristics, namely: (1) agricultural products are perishable, (2) the process of planting, growing and harvesting depends on the climate and season (3) yields have shapes and sizes, (4) the product is “kamba” agricultural products which is difficult to handle (Austin, 1981; Brown, 1994), as well as reduce the uncertainty in the business. All of these factors are used into consideration to design and analyze the supply chain of products which makes the supply chain management of agricultural products become more complex than chain management in general. Potato ( Solanum tuberosum L.) is one of horticultural commodities. Potato is prospectively developed as demand continues to increase in line with population growth, as a highly nutritious food, raw material for food processing industry, non-oil export commodities, and as a source of farmers income. It has the highest and efficient energy and protein productivity/hectare/unit time, and can be planted on the condition of altitude, latitude and climate that is wider than the other major staple crops.