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SUMMARY Indonesian national and regional policies on deregulating the supply chain of agricultural products among provinces after the economic crisis in 1997-98, brought a rapid increase in total amounts of fruit and vegetables that were transacted in most of wholesale markets, especially the Kramat Jati central wholesale market in Jakarta. Accordingly, relevant stakeholders found it difficult to manage the central market, striking an appropriate balance between the expansion of the profit from these transactions and the control of environmental damages in the market as well as surrounding areas. Nevertheless, no predictive models are available for the market capacity on the basis of engineering fieldwork in the market. In this study, the Kramat Jati central wholesale market was selected as a case to analyze the supply chain of fruit and vegetables systematically by the PCM (Project Cycle Management) approach. First, stakeholders analysis was applied to draw a system of distribution and disposal for fruit and vegetables, that is, the social system that covers the distribution channel of fresh produce through the market as well as the channel of waste disposal in Jakarta. Then, problem analysis was also applied to investigate the true cause of insufficient rationalization for wholesalers and retailers in the market as the target groups, and then the results indicated that all problematic factors were rooted in insufficient funding resources for reconstructing the market’s infrastructure. In particular, a technically-feasible issue was the vicious spiral of limited areas for sales and excessive incoming products. Thus, a mathematical model would be required to predict maximum capacity of the market.

Market Capacity Model for the Supply Chain of Fruit and Vegetables in Indonesia - A Case Study on the Kramat Jati Central Wholesale Market in Jakarta