Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra

INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH AND ANALYSIS ISSN(print): 2643-9840, ISSN(online): 2643-9875 Volume 08 Issue 12 December 2025 DOI: 10.47191/ijmra/v8-i12-39, Impact Factor: 8.266 Page No. 6913-6919 IJMRA, Volume 08 Issue 12 December 2025 www.ijmra.in Page 6913 Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra Danang Aria Nugroho1, Handian Purwawangsa2, Mohammad iqbal Irfany3, Supriyanto4, Ifa Khofifah5, Andri Pratama6, Ghani Fazlul Haq SN7, Taufik Hidayat8 1Directorate of Agromaritime Community Development, IPB University 2Department of Forest Management, Faculty of Forestry and Environment, IPB University 3Department of Islamic Economics, Faculty of Economics and Management, IPB University 4Department of Mechanical and Biosystem Engineering, IPB University 5Faculty of Human Ecology, IPB University 6,7,8Vocational School, IPB University ABSTRACT: The Telang Transmigration Area in Banyuasin Regency, South Sumatra, is a strategic tidal agricultural area with strong potential for agribusiness development based on rice, corn, and coconut commodities. This study aims to analyze production potential, key challenges, and strategies for developing superior commodities in the Telang Transmigration Area. The approach used was a mixed-method approach through field observations, focus group discussions, and structured questionnaires involving farmers and local stakeholders. Secondary data were obtained from the 2025 Agricultural Extension Program and Banyuasin Regency statistical data. The results show that the food crop subsector is dominated by tidal rice with a total area of 44,436 ha and a production of 216,987 tons per year, followed by corn with an area of 980 ha and a production of 6,095 tons, and smallholder coconut and oil palm plantations that contribute significantly to household income. Agribusiness performance is still hampered by the condition of roads and bridges.Damaged rice fields, declining tertiary irrigation networks, farmers' dependence on middlemen for marketing of Harvested Dry Grain (GKP), and high soil acidity. Proposed development strategies include strengthening the rice production system (infrastructure rehabilitation, adaptive varieties such as IPB 9G, and Rice Milling Plant revitalization), integrating corn with feed and laying hen agribusiness, and developing a circular economy based on coconut waste. Integrated interventions in infrastructure, institutions, human resource capacity, and value chain strengthening are key to improving the competitiveness and welfare of farmers in the Telang Transmigration Area. KEYWORDS: agribusiness development, coconut, corn, telang transmigration area, tidal rice,value chain I. INTRODUCTION Transmigration is an Indonesian government policy to move people from the densely populated island of Java to other sparsely populated areas outside Java. Based on existing records, this transmigration program began in 1905 and lasted until 1941 (Halwi et al., 2014). However, the definition of transmigration has developed into several variants, currently, for example, there is the term local transmigration, namely the transfer of residents within an island, both on the island of Java itself and outside Java. Transmigration has also been carried out from densely populated islands outside Java, such as Lombok and Bali, to other islands (Setiawan, et al.). The transmigration program also aims to move people from a densely populated area to contribute to economic and social development in another region (Prihatin, 2012). The program, which had been carried out since 1905 by the Dutch East Indies government, was expected to bring benefits to transmigrants, such as equal distribution of population and development, increased social and economic welfare through new land and jobs, regional development and food security, strengthening national integration through cultural diversity, and infrastructure development in the destination areas. In the process, several priority areas for regional development in Indonesia have been identified. One of these areas being focused on is the Telang Transmigration Area, located in Banyuasin Regency, South Sumatra. Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra IJMRA, Volume 08 Issue 12 December 2025 www.ijmra.in Page 6914 The Telang Transmigration Area (KT Telang) is known as a New Urban Area (KPB) (following the issuance of Ministerial Regulation No. 5 of 2021 concerning Procedures for Transmigration Area Planning). As a New Urban Area, KT Telang is also known for its comparative advantages in the agricultural sector, particularly in food crops, making it a potential transmigration area and categorized as an independent transmigration area. This advantage is reflected in the vastness of productive agricultural land, the availability of water resources, and the local community's experience in cultivating superior commodities. The Telang Transmigration Area still faces various obstacles, one of which is low price absorption by farmers due to intervention by collectors or middlemen (Swastika et al., 2020). Another obstacle is the slow government response in repairing irrigation channels, which results in suboptimal performance of community irrigation channels. The Telang Transmigration Area is one of the rice production centers in South Sumatra (BPS Banyuasin Regency, 2018) with potential for upstream and downstream agribusiness development. However, most farmers still choose to sell their harvest as Harvested Dry Unhusked Rice (GKP) rather than further processing it into rice. This decision not only impacts farmers' incomes but also the sustainability of the agribusiness system and regional added value. Understanding the determinants of GKP sales decisions is crucial for formulating strategies to strengthen the rice value chain in this region. As a response to the structural challenges and opportunities for locally-based economic development in transmigration areas, a development plan based on the region's superior potential is needed that not only recognizes the region's primary resources but also fosters an inclusive, sustainable, and integrated business ecosystem. In addition to internal strengthening, this program also works to build a sustainable village business ecosystem by connecting Village-Owned Enterprises (BUMDes) with cooperatives, MSMEs, and government support systems. This connection enables better integration in production, marketing, and value-added processing, thereby promoting local resilience and sustainability (Handian Purwawangsa et al., 2025). II. RESEARCH METHODOLOGY The methodology used in this activity is designed to generate a deep understanding of the region's actual conditions, including the potential for superior commodities and their development strategies. The research design employed qualitative and quantitative research, involving various stakeholders at the local, regional, and national levels. The research was conducted in a participatory manner and based on empirical data. This approach emphasized the active involvement of local communities in data collection, verification, and analysis. Data were collected through focus group discussions (FGDs) to gain in-depth information on leading commodities and questionnaires to gather quantitative data on socioeconomic conditions. The area is explored directly through observation and dialogue with key actors. Empirical principles ensure that the data collected from real conditions in the field. III. RESULTS AND DISCUSSION A. General Description of the Telang Transmigration Area The Telang Transmigration Area is a strategic area in Banyuasin Regency, South Sumatra Province, which plays a crucial role as an agricultural production center. This area is characterized by tidal flats and an irrigation system that supports the intensification of cultivation of key commodities such as rice, corn, and various horticultural crops. Socio-economically, the majority of the population in the Telang area are farmers and have extensive experience in cultivation since the early stages of the transmigration program, thus forming a strong local knowledge base in managing swampland agriculture. Administratively, the Telang Transmigration Area encompasses four sub-districts: Tanjung Lago, Muara Telang, Sumber Marga Telang, and Makarti Jaya, which together form a unified agricultural region with significant potential for agribusiness development. B. Potential Agricultural Commodities in the Telang Transmigration Area The potential of agricultural commodities, specifically rice and corn, in the Telang Transmigration Area demonstrates the diversity and strategic resource carrying capacity for regional agribusiness development. Leading commodities include food crops, horticulture, and plantations spread across three sub-districts in the area: Tanjung Lago, Muara Telang, and Sumber Marga Telang. These three sub-districts share relatively similar agro-ecological characteristics, particularly tidal flats, which are the primary basis for cultivating rice and other commodities. The data sources used in this analysis are from the Banyuasin Regency Central Statistics Agency (2024), the 2025 Agricultural Extension Program from the Banyuasin Regency Agriculture Service. Banyuasin, where each sub-district contains information on planted area, productivity, supporting infrastructure, and the dynamics of farmer institutions. This data serves as an empirical basis for assessing actual production capacity and identifying opportunities for increasing added value and strengthening the agribusiness system in the Telang Transmigration Area. Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra IJMRA, Volume 08 Issue 12 December 2025 www.ijmra.in Page 6915 1. Potential of Rice and Corn Food Crops Food crops in the Telang area are dominated by lowland rice, followed by corn. The following table shows the planted area, production, and productivity in each sub-district. Komoditas Kecamatan Luas Lahan (Ha) Produksi (Ton) Produktivitas rata-rata (Ton/Ha) Padi Sawah Tanjung Lago 12.544 63.846 5,79 Muara Telang 21.198 95.391 4,50 Sumber Marga Telang 10.694 57.750 5,40 Total Kawasan Telang 44.436 216.987 5,20 Jagung Tanjung Lago 230 1.495 6,50 Muara Telang 400 2.500 6,25 Sumber Marga Telang 350 2.100 6,00 Total Kawasan Telang 980 6.095 6,22 Agricultural Extension Program of Tanjung Lago, Muara Telang, and Sumber Marga Telang Districts. The food crops subsector is the most dominant sector in the agribusiness structure of the Telang Transmigration Area, with tidal wetland rice as the primary commodity. Based on the 2025 Agricultural Extension Program, the total rice area in three subdistricts—Tanjung Lago, Muara Telang, and Sumber Marga Telang— reaches 44,436 hectares, resulting in an annual production of 216,987 tons. Muara Telang Sub-district serves as the largest production center with a land contribution of 21,198 hectares and a production of 95,391 tons, or approximately 44% of the region's total production. Meanwhile, Tanjung Lago and Sumber Marga Telang Sub-districts contribute 12,544 hectares and 10,694 hectares, respectively, which collectively strengthens the region's position as a center for tidal swamp-based rice production. Rice productivity in the Telang Transmigration Area is in the range of 4.5–5.8 tons/ha, reflecting the successful adoption of superior varieties such as Inpari 32, Inpari 42, and Ciherang, which have proven to be adaptive to acidic soil conditions and Fluctuating water levels in tidal areas. Technical improvements in production are also evident in the widespread implementation of the 200 Cropping Index (IP 200), which allows farmers to have two planting seasons per year. This production system serves as a foundation for increasing regional food supply capacity and supporting efficient use of swampland. Besides rice, corn offers significant development prospects in this region. Corn cultivation covers 980 hectares, with a total annual production of 6,095 tons. Muara Telang District has once again demonstrated its role as a major production center, achieving a productivity of approximately 6.25 tons/ha, one of the highest rates in tidal agroecosystems. This success opens up opportunities for the development of food crop diversification and the integration of production systems, particularly in supporting the corn-based animal feed industry. 2. Potential of Coconut Plantations Smallholder plantations in the Telang area include coconuts, oil palms, and rubber. These plantations provide a source of additional income for transmigrant communities. Komoditas Kecamatan Luas Lahan (Ha) Produksi (Ton) Kelapa Dalam Tanjung Lago 1.163 845 Muara Telang 2.843 3.415 Sumber Marga Telang 5.711 5.693 Total Kawasan Telang 9.717 9.953 Kelapa Sawit Rakyat Tanjung Lago 250 3.750 Muara Telang 913 13.695 Sumber Marga Telang 220 3.300 Total Kawasan Telang 1.383 20.745 Source: Agricultural Extension Program of Tanjung Lago, Muara Telang, and Sumber Marga Telang Districts. Community plantations in the Telang area include coconut and oil palm commodities spread across three sub-districts, namely Tanjung Lago, Muara Telang, and Sumber Marga Telang. For coconut commodities, Sumber Marga Telang District has the largest area, namely 5,711 hectares, with a total production reaching 5,693 tons. Muara Telang District also has a significant land Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra IJMRA, Volume 08 Issue 12 December 2025 www.ijmra.in Page 6916 area, namely 2,843 hectares, with a production of 3,415 tons. Meanwhile, Tanjung Lago District manages 1,163 hectares, producing 845 tons of coconut. In total, the entire Telang area has an area of coconut land reaching 9,717 hectares and a total production of 9,953 tons, which shows the important role of this commodity as a source of income for the local community. Meanwhile, for smallholder oil palm commodities, production is also spread across the three sub-districts with quite striking differences in land area. Tanjung Lago Sub-district has the largest land area, namely 250 hectares, with production reaching 3,750 tons of fresh fruit bunches per year. Muara Telang Sub-district manages 913 hectares of oil palm land with a production of 13,695 tons of fresh fruit bunches per year, making it the largest contributor to production. Meanwhile, Sumber Marga Telang Sub-district has 220 hectares of land with a production of 3,300 tons of fresh fruit bunches per year. Overall, the total area of smallholder oil palm land in the Telang area reaches 1,383 hectares, with a total production of 20,745 tons of fresh fruit bunches per year. This data shows that smallholder oil palm is becoming strategic commodities that make a large contribution to the economy of the people in the region. C. Challenges of Developing Agricultural Commodities in the Telang Transmigration Area The development of superior commodities in the Telang Transmigration Area is inseparable from a number of structural and operational challenges that affect production effectiveness, value chain efficiency, and farmers' ability to improve their economic wellbeing. The complexity of these challenges arises from limited infrastructure, technological capacity, farmer institutions, and market dynamics that do not fully support downstreaming and industrialization of village-based agriculture. Therefore, identifying challenges at the field level is a crucial step in understanding the root causes and formulating more comprehensive and targeted intervention strategies. Based on field observations, in-depth interviews, and analysis of extension program documents, the challenges faced in developing superior commodities in the Telang Transmigration Area can be outlined as follows: 1.Inadequate Road and Bridge Access One of the main challenges in developing superior commodities in the Telang Transmigration Area is the inadequate transportation infrastructure. Damage to the road network in several locations, particularly access to production centers and between villages, poses significant obstacles to the mobility of farmers. This situation is exacerbated by the presence of wooden bridges that have deteriorated and are no longer suitable for large-volume distribution of agricultural products. These infrastructure limitations directly increase logistics costs, extend distribution times, and reduce the efficiency of the rice, corn, and coconut value chains. From an agribusiness perspective, inadequate infrastructure is a limiting factor in achieving regional competitiveness. Farmers face higher transportation costs and the risk of crop damage during mobilization, resulting in lower profit margins. Furthermore, obstructed market access can reduce the frequency of transactions and narrow farmers' opportunities to obtain better selling prices. Therefore, repairing village roads and bridges is an urgent need to ensure the smooth flow of goods, reduce transaction costs, and strengthen interregional connectivity within the Telang Transmigration Area agribusiness system. 2.Suboptimal Irrigation Channels Another significant challenge in developing superior commodities in the Telang Transmigration Area is the declining condition of the irrigation network. Many irrigation channels in the area are experiencing shallowing, leaks, and physical damage to supporting structures, preventing them from optimally delivering water to agricultural lands. This damage directly impacts water availability, particularly during the first and second planting seasons, which are highly dependent on water regulation in tidal ecosystems. Irregular water supply leads to decreased crop productivity and increases the risk of crop failure, particularly for rice, the dominant subsector. From an agronomic perspective, a non-optimal irrigation system inhibits plant growth, reduces fertilizer efficiency, and increases the incidence of plant pests (OPT). Furthermore, shallowing of canals causes water flow to slow and unevenly, resulting in drought in some areas while flooding others. This unequal distribution of water hinders the achievement of ideal productivity and impacts the cropping index (IP), which has been targeted to reach an IP of 200. Therefore, irrigation network rehabilitation is a strategic priority to restore land hydrological function, improve production stability, and ensure the sustainability of farming in the Telang Transmigration Area. 3.Farmers' Dependence on Middlemen Another significant structural challenge is limited market access, leaving most farmers relying solely on middlemen to sell their harvested dry grain (GKP). This dependence places farmers in a weak bargaining position, as middlemen serve as the primary marketing channel, capable of quickly purchasing grain, albeit at prices that tend to be below more competitive market levels. As a result, farmers' incomes are not maximized, even when production is substantial or the grain quality is relatively good. Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra IJMRA, Volume 08 Issue 12 December 2025 www.ijmra.in Page 6917 From an agricultural economics perspective, these conditions create two crucial problems. First, the systemic decline in selling prices reduces farmers' profit margins, which in turn reduces incentives to invest, adopt technology, or scale up their businesses. Second, dependence on a single, dominant marketing channel reduces the diversification of price and market risks, making farmers more vulnerable to price fluctuations at the local level and to disruptions in supply or demand in external markets. Therefore, improving market access—whether through strengthening marketing institutions, partnering with industry players, or developing alternative marketing networks—is a strategic necessity to improve farmer welfare and enhance the effectiveness of the value chain in the Telang Transmigration Area. 4.Acidic soil conditions The relatively high acidity (pH) of the soil in the Telang Transmigration Area is a major agronomic obstacle to increasing the productivity of food crops and horticultural crops. Acidity levels far below the ideal pH limit the availability of essential nutrients, such as phosphorus (P), potassium (K), and magnesium (Mg). Furthermore, acidic soils tend to increase the solubility of aluminum and iron to toxic levels, inhibiting root development and reducing the efficiency of nutrient uptake by plants. This impact is most evident in rice and horticultural crops, which require more stable soil conditions to achieve optimal productivity. Agronomically, highly acidic soils not only reduce crop yields but also cause significant productivity variations between plots, particularly in tidal zone types B and C, which are more sensitive to changes in soil chemistry. This factor also increases the risk of crop failure during the dry season, when the soil's natural neutralization process is not functioning properly. This obstacle presents a strategic challenge that requires integrated interventions, such as the application of agricultural lime (calcite/dolomite), organic matter management, and the selection of adaptive varieties. Without systemic management, soil acidity will continue to be a limiting factor, hindering agricultural growth and reducing cultivation efficiency in the Telang Transmigration Area. D. Development of Agricultural Commodities in the Telang Transmigration Area Taking into account the biophysical characteristics of tidal flats and the availability of supporting infrastructure, this integrative approach is crucial to ensure that interventions—whether in production, institutional, or marketing—can strengthen the agribusiness system as a whole. Strengthening the value chain from upstream to downstream is a primary focus, including increasing productivity through technological innovation, improving market access, and developing downstream commodities that can create greater added value for farmers. Through this approach, farmers' roles extend beyond those of raw material producers to economic actors involved in processing, marketing, and developing industries based on superior commodities. Taking into account the various challenges and opportunities for agricultural development in tidal areas, the strategy Commodity development in the Telang Transmigration Area can be formulated as follows: 1.Development of rice food crop commodities Strengthening the rice production system in the Telang Transmigration Area requires integrated strategic interventions that include improving physical infrastructure, strengthening farmer institutions, and enhancing the quality of human resources. Improving road and bridge infrastructure is an urgent step because it directly impacts logistical efficiency, smooth distribution of unhusked rice, and farmer accessibility to markets and production facilities. Furthermore, regular normalization of the tertiary irrigation network—ideally every five years—is necessary to maintain a continuous water supply to tidal flats and improve the cropping index. Water supply stability is a key factor in reducing production risks and maintaining the sustainability of the rice cultivation system. In terms of production technology, developing demonstration plots for superior varieties, such as IPB 9G, is a crucial strategy to encourage increased productivity and adapt varieties to local agroecological conditions. With an economic value of around IDR 35,000/kg, this variety has significant potential to increase farmer incomes if widely adopted. However, varietal innovation needs to be supported by strong post-harvest governance. Therefore, revitalizing Rice Milling Plants (RMPs) is a fundamental element in strengthening downstream processing. RMPs, which are managed effectively, professionals are able to improve rice quality, shorten the supply chain, and reduce farmers' dependence on middlemen. Strengthening farmer institutions—whether through cooperatives, village-owned enterprises (BUMDes), or farmer group associations (Gapoktan)—is essential to ensure that RMP management is transparent, accountable, and oriented toward increasing local added value. Strong institutions not only facilitate access to capital and markets but also create governance mechanisms that promote business sustainability. Furthermore, increasing human resource capacity through training in RMP operations management, rice quality standards, machine maintenance, digital marketing, and financial record-keeping is a crucial prerequisite for the successful utilization of downstream facilities. Investment in human resource development will strengthen the technical and managerial competencies of RMP implementers, ensuring optimal facility function and delivering tangible benefits to farmers. Thus, the integration between infrastructure improvements, variety innovation, revitalization of downstream Strategy for Strengthening Agribusiness of Leading Commodities on Tidal Lowlands in the Telang Transmigration Area, Banyuasin, South Sumatra IJMRA, Volume 08 Issue 12 December 2025 www.ijmra.in Page 6918 facilities, institutional strengthening, and human resource capacity building is the main foundation for building a more productive, efficient, and sustainable rice agribusiness system in the Telang Transmigration Area. 2.Development of Corn Food Crop Commodities Corn commodity development in the Telang Transmigration Area is directed at increasing added value through downstream processing, particularly in the animal feed subsector and its integration with the laying hen agribusiness. This approach is highly relevant given that corn is the primary raw material in laying hen feed formulations, thus developing downstream processing can create strong inter-subsector linkages within the local agribusiness ecosystem. Establishing villageand sub-district-scale animal feed production units is a crucial strategy for sustainably increasing corn demand, expanding the domestic corn market, and reducing farmers' dependence on price fluctuations in markets outside the region. Furthermore, the presence of local feed production units can create market certainty for corn farmers, encourage increased production scale, and strengthen price stability at the farm level. Integrating corn cultivation and the village-based feed industry also has the potential to increase supply chain efficiency, accelerate local economic growth, and strengthen food security and the resilience of the livestock industry. Therefore, developing downstream corn processing through livestock feed units is a strategic step in building an integrated and sustainable agribusiness in the Telang Transmigration Area. 3.Development of Coconut Plantation Commodities The development of coconut commodities in the Telang Transmigration Area needs to focus on two strategic aspects: improving irrigation channels and utilizing coconut-based waste. Irrigation channels play a crucial role in maintaining soil moisture and supporting coconut growth, particularly in tidal agroecosystems, which are heavily influenced by water dynamics. During the dry season, tidal areas are susceptible to drought, while during the rainy season they can potentially become inundated. Therefore, rehabilitating and optimizing irrigation channels is a crucial step to improve growing environment stability, maintain production continuity, and open up opportunities for intensification in areas that have previously been less productive. Beyond infrastructure, developing an industry based on coconut waste represents a strategic opportunity to boost added value and strengthen the local economy. Coconut fiber, a primary waste product, has significant economic potential because it can be processed into cocopeat, cocofiber, planting media, hydroponic materials, and even raw materials for home industries and crafts. Utilizing this waste not only contributes to increasing farmers' incomes but also creates new job opportunities and encourages a circular economy at the village level. Therefore, integrated coconut waste processing with the industrial market can be a key driver for sustainable coconut agribusiness development in the Telang Transmigration Area. IV. CONCLUSION The Telang Transmigration Area has significant agricultural potential, particularly in the development of rice, corn, and coconut crops. This potential is supported by the availability of extensive tidal flats and the adaptive capacity of the community. has long experience in swampland cultivation systems. However, optimizing the use of these resources still faces several structural barriers. Limited road and irrigation infrastructure reduces the efficiency of input distribution and production output, while the dominance of middlemen in the marketing chain leaves farmers in a weak bargaining position. Furthermore, the lack of downstream activities at the farmer level means that the added value of commodities has not been optimally monetized at the local level. Overall, the effectiveness of agribusiness development in the Telang Transmigration Area is highly dependent on the ability to integrate the physical potential of the region, the capacity of local actors, and market accessibility into a mutually beneficial system. 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