Sustainable Risk Management of the Porang Supply Chain as an Agro-Industrial Commodity in Madiun Regency

Abstract

Porang is a key agro-industrial commodity in Madiun Regency, Indonesia. Its supply chain currently faces numerous challenges, particularly in terms of risk management and sustainability issues. Various risks continue to affect the stability and performance of supply chains, posing a threat to their long-term viability. Additionally, stakeholder involvement remains fragmented, with limited collaboration across supply chain networks in the industry. This study aimed to identify and analyze supply chain risks and develop relevant risk mitigation strategies from the perspective of sustainability. Data were collected using questionnaires and interviews with selected informants and farmer participants based on Slovin’s formula along the porang supply chain. This study applies the Risk Breakdown Structure (RBS) and House of Risk (HoR) methods to systematically analyze and prioritize potential risks. The results of this study reveal that each stage of the porang supply chain involves distinct risk characteristics that necessitate a collaborative management approach aligned with a balanced consideration of economic, social, and environmental dimensions. The proposed mitigation strategies are both practical and contextually relevant, offering a robust foundation for policy development in sustainable supply chain risk management. The results are expected to support the development of a comprehensive and sustainable risk management model tailored to agro-industrial supply chains, with a specific focus on porang as a strategic commodity.