Track: Business Management

Abstract

Agroindustry is a key component of Indonesia's economic system which has been experiencing “VUCA (Volatile, Uncertain, Complex, Ambiguous)” as the most critical set of challenges recently. This study is the first to provide an overview of the agroindustry with a framework focused on the Indonesia Poultry Industry. Apart from playing an important role in the national economy, the poultry industry also provides a protein source for Indonesian people, with a 7.8 kg consumption per capita per year in 2019. This study aims to describe the challenges of the Indonesian poultry industry under VUCA conditions. The exploratory method was used to identify the potential factors through literature reviews and in-depth interviews with poultry industry practitioners. Furthermore, results were based on data obtained from primary and secondary sources. This research identified the various VUCA factors affecting businesses across Indonesia’s poultry industry. These include volatile conditions due to fluctuations in live bird prices, uncertain conditions due to chicken meat imports, and the unavailability of food chain facilities. The complex and ambiguous conditions occurred due to chicken meat oversupply and cartel practices. Finally, the research results were incorporated in a conceptual model for future reference.