Jurnal Administrasi Bisnis
Vol 5, No 3 (2026) September

Middlemen Dominance over Salt Prices and Its Implications on Farmers' Profitability in Jeneponto: A Business Law and Financial Perspective

Siti Syarifah Wafiqah Wardah (Universitas Negeri Makassar)
Eureka Try Zarazwanty R. Laega (Universitas Negeri Makassar)



Article Info

Publish Date
30 Sep 2026

Abstract

This study aims to analyze the mechanism of middlemen dominance in salt price determination and its impact on farmers' profitability in Bangkala District, Jeneponto Regency, while examining the business law framework governing the trading relationship between farmers and middlemen. The study employs a mixed method approach integrating normative and empirical methods. The empirical component uses descriptive qualitative methods with in-depth interviews of nine informants consisting of three salt farmers, three middlemen, and three consumers. The normative component applies statutory and conceptual approaches to the Civil Code, Law No. 5/1999, Law No. 7/2014, and Law No. 20/2008. Results indicate that middlemen control the salt purchase price through two mechanisms: (1) market information asymmetry that positions farmers as price takers; and (2) informal price coordination among middlemen that eliminates purchasing competition. Salt prices fluctuated between IDR 50,000 to 150,000 per 50 kg throughout 2025, yet farmers cannot capitalize on high-price periods due to seasonally limited production capacity. From a business law perspective, the contractual relationship between farmers and middlemen contains positional imbalances potentially violating Articles 1320-1321 of the Civil Code and the provisions of Law No. 5/1999 on the Prohibition of Monopolistic Practices. The study recommends three integrative policies: establishing a minimum purchase price for traditional salt through regional regulations, facilitating direct marketing cooperatives, and expanding rural credit access in the maritime sector.

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Journal Info

Abbrev

jab

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Jurnal Ilmu Administrasi Bisnis bertujuan untuk mempertajam ide bisnis dengan bidang keilmuan administrasi bisnis, ekonomi, manajemen, kewirausahaan, pemasaran dan pengembangan sumber daya ...