Financing and Institutional Models of Soy Products

Abstract

Discourse on the development of soybean processed products is important to study because besides being able to uncover the question related to the low productivity of soybean cultivation also gives a clue as to why soybean processed product entrepreneurs have almost no accumulation of capital so far. This study aims to reveal financing models and institutional patterns of soybean processing businesses in Jember district. This type of research will use qualitative research from an emic perspective that will be implemented in the area of Jember Regency. The type of data used is primary and secondary data which are then processed and analyzed using the Miles and Huberman analysis method. This study found that the development of soybean processing business, which consisted mainly of MSME entrepreneurs, was enticed by a financing model whose funds were mostly supplied by the Suwek Daily Bank (BHS) and loan sharks that caused the profit margins to not be enjoyed by the entrepreneurs themselves. In addition, the institutional patterns built between soybean processed products entrepreneurs such as tempeh, tofu, milk and soybean snacks are still weak. They individually compete more freely so that when there is a shock such as an increase in the price of imported or local soybeans it will sacrifice quality. Some build a vertical partnership pattern between soybean processed product entrepreneurs and their raw material suppliers and with soybean processed users, while horizontally between processed product entrepreneurs barely build partnerships. This condition causes unfair competition between businesses and ultimately increases the transactions cost of economic that will erode the margins they earn.