From Comparative to Competitive Advantage: Value Chain Upgrading and Salt Industrialization in Kabupaten Kupang, Indonesia

Eugenia Hendrini Patricya Tanan; Agnes Kidi Beda Mudamakin; Melda Mariana Poeh; Marius Masri

doi:10.59431/ijer.v6i3.1005

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From Comparative to Competitive Advantage: Value Chain Upgrading and Salt Industrialization in Kabupaten Kupang, Indonesia

Eugenia Hendrini Patricya Tanan, Agnes Kidi Beda Mudamakin, Melda Mariana Poeh, Marius Masri

View Author Affiliations

Eugenia Hendrini Patricya Tanan: Politeknik Negeri Kupang, Indonesia
Agnes Kidi Beda Mudamakin: Politeknik Negeri Kupang, Indonesia
Melda Mariana Poeh: Politeknik Negeri Kupang, Indonesia
Marius Masri: Universitas Katolik Widya Mandira, Indonesia

DOI:

https://doi.org/10.59431/ijer.v6i3.1005

Published:

September 28, 2026

Pages:

1498-1510

38

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43

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Abstract

Salt production in Kabupaten Kupang has strong natural potential, but weak downstream processing limits local value capture. This study evaluates how comparative advantage can be converted into competitive advantage through value-chain upgrading and salt industrialization. A descriptive quantitative design, supported by interviews, field observations, and secondary data, used 73 valid stakeholder responses from Nunkurus, Merdeka, and Bipolo. Smallholder production showed a Domestic Resource Cost Ratio of 0.55, while the company-level analytical scenario produced 0.61, indicating favorable comparative efficiency. However, technology access, infrastructure, product diversification, farmer institutions, and MSME/cooperative participation remained weak. Smallholders were concentrated in raw-salt activities, and substantial corporate output was processed outside the region. The study's novelty lies in integrating comparative and competitive advantage, value-chain structure, industrial readiness, and welfare-oriented considerations within an island-region context. Policy priorities include local washing/refining capacity, quality upgrading, logistics, stronger cooperatives, and formal farmer-company partnerships to retain more value in coastal communities.

Keywords

Salt Value Added; Salt Downstreaming; Salt Industrialization; Value Chain Upgrading; Comparative Advantage; Coastal Economic Development

Author Biographies

Eugenia Hendrini Patricya Tanan

Politeknik Negeri Kupang

Accounting Study Program, Politeknik Negeri Kupang, Kupang City, East Nusa Tenggara, Indonesia.

Agnes Kidi Beda Mudamakin

Politeknik Negeri Kupang

Accounting Study Program, Politeknik Negeri Kupang, Kupang City, East Nusa Tenggara, Indonesia.

Melda Mariana Poeh

Politeknik Negeri Kupang

Accounting Study Program, Politeknik Negeri Kupang, Kupang City, East Nusa Tenggara, Indonesia.

Marius Masri

Universitas Katolik Widya Mandira

Development Economics Study Program, Faculty of Economics and Business, Universitas Katolik Widya Mandira, Kupang City, East Nusa Tenggara, Indonesia.

Article Identifiers

Article Title: From Comparative to Competitive Advantage: Value Chain Upgrading and Salt Industrialization in Kabupaten Kupang, Indonesia
DOI: 10.59431/ijer.v6i3.1005
Publication Date: 2026-09-28

Journal: Indonesian Journal Economic Review (IJER)
Volume: 6
Issue: 3
Pages: 1498-1510

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Issue Information

Article Details

Volume:	6
Issue:	3
Year:	2026
Published:	2026-09-28
Pages:	1498-1510
Section:	Articles

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How to Cite

Tanan, E. H. P., Mudamakin, A. K. B., Poeh, M. M., & Masri, M. (2026). From Comparative to Competitive Advantage: Value Chain Upgrading and Salt Industrialization in Kabupaten Kupang, Indonesia. Indonesian Journal Economic Review (IJER), 6(3), 1498-1510. https://doi.org/10.59431/ijer.v6i3.1005