Yuli Wibowo
Department of Agro-Industrial Technology, Faculty of Agricultural Technology, University of Jember

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Risk mitigation atrategies for MSME-based chili sauce industry development in Jember Regency using FMEA and AHP Suwita Tri Prihani; Yuli Wibowo; Herlina Herlina; Siswoyo Soekarno; Andi Eko Wiyono
Jurnal Teknologi dan Industri Pertanian Indonesia Vol. 18 No. 1 (2026): April
Publisher : Food and Agricultural Product Technology Department, Faculty of Agriculture, Univerisitas Syiah Kuala

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17969/jtipi.v18i1.1020

Abstract

The MSME-based chili sauce industry has strong potential to support horticultural agrotechnopreneurship in Jember Regency, Indonesia, but its development is constrained by raw material, production, market, and financial risks. This study aimed to identify, assess, and formulate priority mitigation strategies for the main risks affecting chili sauce industry development. A mixed-methods approach was applied through interviews, questionnaires, field observations, literature review, and secondary data collection. Risk assessment was conducted using Failure Mode and Effect Analysis, while mitigation priorities were determined using the Analytical Hierarchy Process involving four experts from MSMEs, local government institutions, and academia. The study identified ten potential risks, with four categorized as critical because their Risk Priority Number values exceeded the critical threshold of 34.69. The highest-priority risk was fluctuating chili prices, with an RPN of 80.00, followed by raw material damage and short shelf life, product shelf-life limitation, and unstable profit. The recommended mitigation strategies were establishing partnerships with chili farmers, modifying raw material storage conditions, implementing demand-driven production management, and improving production efficiency. These findings provide a structured risk mitigation framework for strengthening supply stability, product quality, operational efficiency, and business sustainability in MSME-based chili sauce agrotechnopreneurship.