PRODUCTION RISK REDUCTION STRATEGY OF SALT BUSINESS IN MADURA

Abstract

This study has aimed to 1). know the source of production risk, 2). mapping the possibility of the production risk salt business people, 3) analyze production risk reduction strategy. The study was conducted in Madura Island as central to salt production in Indonesia. The analysis method used descriptive analysis, z-score, value at risk, and AHP. The result shows that there are 11 sources of salt production risks (climate, polluted environment, drainage conditions, seawater quality, soil structure and morphology, soil topography, extent and conditions of bozem, extent and conditions of peminihan, extent and condition of crystallization pools, waterwheel/ water pump, and bund conditions). Average production risk opportunity by 17%, in case of crop failure or disruption to the production of salt, resulted in the production decline of 19.36 ton/ hectare. The source of production risk is in Quadrant II which has big probability and big impact. Prevent at source has to be applied as production risk reduction strategy.