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SELECTING PRIORITY STRATEGY IN A TRADING FOR COOKING OIL IN INDONESIA USING ANALYTICAL HIERARCHY PROCESS Yudhiawan Wibisono; Mohammad Syamsul Maarif; Budi Yulianto; Zenal Asikin
International Journal of Business Studies Vol. 10 No. 2 (2026): International Journal of Business Studies
Publisher : Sekolah Tinggi Manajemen IPMI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32924/ijbs.v10i2.426

Abstract

Indonesia continues to face recurring challenges in ensuring the availability and affordability of cooking oil, one of its most essential household commodities. Fluctuating prices, supply chain inefficiencies, weak distribution monitoring, and limited stakeholder coordination often lead to market instability and public discontent. Existing mechanisms have not fully addressed issues of equity, transparency, and resilience, risking national food security, environmental sustainability, and socio-economic justice. The Analytical Hierarchy Process (AHP) is widely recognized as a decision-support tool, yet it has faced criticism due to the inconsistency of its pairwise comparison scale and its inability to fully capture uncertainty and complexity. To address this issue in the context of cooking oil trade, a questionnaire was administered to 12 experts with substantial knowledge of Indonesia’s cooking oil sector. To strengthen the effectiveness and resilience of Indonesia’s cooking oil trading system, a strategic assessment using AHP compared four alternatives. The combined approach of targeted subsidies and digitalized distribution emerged as the most promising, offering a data-driven solution to ensure fair and efficient allocation. This strategy integrates economic equity with operational efficiency, requiring a shift toward digital infrastructure, multi-sectoral collaboration, and proactive, real-time decision-making.