Disruptive Innovation in Food Commodities: Efforts to Solve the Problems of Food Price Stabilization in Indonesia

摘要

The factors that determine food prices are supply and demand. On the supply side, food prices are determined by the ability of production and distribution to consumers. However, the ability of distribution also determines the stabilization of food prices. Food commodities are primary needs for human consumption so that their supply must be fulfilled, and access must be reached through efficient distribution channels. The length of the distribution channel will increase marketing costs, which will then be charged to consumers and cause more expensive food prices. In the digital era, innovations are needed in an effort to stabilize food prices, help to create new markets, and develop existing markets (i.e., conventional markets). The technology advancement is expected to produce new distribution channels or disruptive innovations. This paper analyzes patterns of food availability and solves the problem of stabilizing food prices in Indonesia through a disruption innovation strategy.