Strategies for Developing MSME-Based Agroindustry to Increase the Added Value of Agricultural Products

Abstract

This study examines the development strategy of MSME-based agroindustry to increase the added value of agricultural products in Indonesia using a qualitative analysis approach. Five MSME informants from different agroindustrial sectors were selected purposively to obtain in-depth insights into their experiences, challenges, and strategic needs. Data were collected through semi-structured interviews, observations, and documentation, and analyzed using thematic analysis. The findings indicate that MSMEs face major constraints, including limited access to processing technology, inconsistent raw material quality, weak human resource capabilities, regulatory barriers, and restricted market access. Direct quotations from informants highlight these operational challenges and the pressing need for structured support. Despite these limitations, significant opportunities exist, such as growing consumer demand for healthy and natural products, expansion of digital marketplaces, and supportive government programs. The study proposes strategic priorities, including capacity building in production and marketing, improved access to appropriate technology, enhanced branding and digital marketing, institutional collaboration through cluster development, and strengthened innovation in product diversification. These strategies are expected to improve value addition, competitiveness, and the sustainability of MSME-based agroindustry. The study contributes practically and academically by providing grounded insights for policymakers, development agencies, and MSME actors in strengthening agroindustry development in Indonesia.