Household-Based Food Processing Industry: Lessons Learned from Dodol Garut

This study aims to investigate the success factors and problems facing by the household-based food processing industry in the city of Garut, West Java, Indonesia. By applying a qualitative research method, we seek information from the players as well as from the government officers whose role as regulator for the entrepreneurs. We conducted a focus group discussion (FGD) with five business owners and managers, and in-depth interview (IDI) with three government officers in August 2014. Based on our analysis, we can conclude that both parties agree that abundant amounts of good quality raw materials and in fact that dodol (A kind of sweets with main ingredients consists of a mix of glutinous rice flour, sugar and coconut milk) is the traditional sweets which was introduced for the first time in the 1920s, are among important factors of the success story. Furthermore, they both also admit that support from the government and SOEs gives them opportunity to develop new products and markets. However, there are also some obstacles to maintain the success of the industry and that may prevent them to grow beyond current condition. The establishment of new manufacturers which offer higher wages in the area reduces the supply of worker for the industry. In addition, limited access and high cost of capital and price fluctuation of sugar, as well as land aberration from agriculture to manufacturing activities are also factors that may halt the continuity of the industry. Keywords: Household-Based, Food Industry, Qualitative Method, SM