Developing a Business Logistics to Improve Economics in Rural Area After Covid-19 Pandemic

Abstract

The SDGs agenda is to solve the problem of poverty and increase food security. Currently, there are 49.41% of poor people who depend on agricultural production in Indonesia. In reality, farmers often do not get benefits that increase poverty. The causes of poverty are cheap selling prices, the presence of speculators, and the unavailability of post-harvest facilities. This condition was exacerbated by the COVID-19 pandemic which made farmers difficult to sell crops due to social distancing rules. This research proposed a logistics business model in rural areas to selling and distributing agricultural products to consumers. There are six steps in designing a trade logistics network that is suitable for business. The entities will be involved in the rural logistics business model are farmers, rural shops, logistics terminals, sub-terminal logistics which will serve consumers in urban areas. There are five Types of logistics networks that proposed with conventional and e-commerce platform. Based on the Paired t-test, the Type-3-Type-5 pair has mean paired difference higher than the other pairs, about 1.2046 points. It means Type-3 trade logistics network is preferable to be implemented in logistics business model.

Keywords: business model, rural, trade logistics network, intermediaries