Int. J Sup. Chain. Mgt Vol. 9, No. 5, October 2020
1369
Assessment of Social Sustainability of
Nutmeg Based-Agroindustry Supply Chain in
South Aceh Regency
Trisna Trisna
#1
, Muhammad Zakaria
#2
, Mochamad Ari Saptari*3
#
Industrial Engineering Department, Faculty of Engineering, Universitas Malikussaleh
Jl. Batam Kampus Bukit Indah, Blang Pulo, Muara Satu, Lhokseumawe, Aceh, Indonesia
*
Information System Department, Faculty of Engineering, Universitas Malikussaleh
Jl. Batam Kampus Bukit Indah, Blang Pulo, Muara Satu, Lhokseumawe, Aceh, Indonesia
1
trisna@unimal.ac.id
2
muh_za@yahoo.com
3
arimochamad@gmail.com
Abstract— Currently, nutmeg supply chain actors
face various problems such as many damaged plants,
the price of nutmeg seeds and oil which continues to
decline, the processing industry has difficulty in the
procurement of raw materials, and social impacts for
the local community. Observing the current nutmeg
commodity conditions, it need to assessment of
sustainability, especially for the social dimension as a
basis for improvement. This study aimed to identify
social sustainability indicators, to assessment for each
social sustainability indicators, and to measure the
overall social sustainability index. The identification
results were 19 indicators of social sustainability
consisting of 7 main indicators, namely: employment,
health and safety, nuisance, local community,
infrastructure and resources, partnerships with
stakeholders, and macro social performance. The
measurement of importance weights showed that the
most influential social indicator was the improvement
of community welfare, then followed by the local
employment. The assessment results showed that the
nutmeg oil and food and beverage agroindustry, each
had very poor and bad social sustainability. That is
the basis for the policymakers to improve and
enhance social impacts for the communities around
the nutmeg supply chain.
Keywords— Nutmeg, Agroindustry, Sustainability,
Social Indicator, Supply chain
1. Introduction
Aceh is the second largest producer of nutmeg
(Myristica fragrant Houtt) in Indonesia after
Maluku which is widely cultivated in South Aceh
and Southwest Aceh Regencies. Based on data, the
total area of nutmeg plantations in Aceh in 2015
was 22,043 ha, production was 8,410 tons and
involved 28,048 farmers[1].
The importance of nutmeg commodity in the
economy of the people of South Aceh Regency
because in addition to being able to increase the
country's foreign exchange, it can also absorb labor
and increase the income of farmers and the
community. In addition to dried nutmegs and mace
which are sold to traders for export, they also
impact the development of downstream industries
including nutmeg oil, food, and beverage
agroindustry. Nutmeg-based agroindustry is needed
to increase value-added, absorb labor, reduce price
fluctuations, and increase farmers' incomes.
Nutmeg agroindustry involves many actors
which include farmers and collectors as raw
materials suppliers, processing industries, and
traders or exporters. Although nutmeg is a superior
commodity, nutmeg cultivation is almost entirely
managed by the society, so there are still many
obstacles developing nutmeg agroindustry caused
by: 1) not yet applying cultivation technology
properly, 2) some old/ damaged and unproductive
plants; 3) not using superior seeds; 4) pest and
disease disturbance, 5) low yield quality, and 6)
product hygiene / health is not guaranteed [2]. In
addition, based on observations and interviews with
nutmeg actors, the price of dried-nutmeg seeds and
nutmeg oil decreased significantly compared to the
previous year.
Problems faced by commodity and agroindustry
supply chains must be considered basic aspects of
sustainability which include economic, social and
environmental dimensions [3]. Likewise with
nutmeg, wherewith the various problems faced
currently, its sustainability needs to be measured.
Good sustainability performance is an indicator of
an organization economically profitable, able to
reduce negative impacts on the environment, and
provide social impacts for the surrounding
community. In general, previous studies focused on
measuring economic and environmental
sustainability and those are still the lack of
researches focused on measuring social
sustainability. Considering that many actors
involved in the supply chain, especially farmers
______________________________________________________________
International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
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