Economics Sustainability of Soybean Supply Chain: Empirical Evidence of System Dynamics Malang Regency


  • Rizka Aidina Putri
  • Retno Astuti
  • Bambang Dwi Argo


The purpose of this study is to simulate soybean supply chain for the next 10 years and make improvement scenario to provide the best policy recommendations in economic sustainability aspect.This study uses a system dynamics approach with a sample of 32 farmers, 1 distributor and 9 soybean processing industries.The results showed the best alternative policy was to apply extensification by 2%, increase in productivity by 3.95%, controlling  imported prices of soybeans by enactment of import tariff policies by 10%, distribution of seed and fertilizer assistance and changes in soybean distribution flow. This policy resulted in an upward trend in local soybean production of 79.6% and overall farmer profits of 111.8% in 2018 to 2028. This research can be a solution to support the stakeholders in the development of strategies for soybean supply chain in terms of economic sustainability.