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Cassava in Indonesia is used as food ingredients to meet the food needs of the community and industry. Cassava is the result of farmers' business that can be processed into staple foods or marketable snacks so that they can penetrate the global market and source of state revenue. Bondowoso as an agricultural area has a large potential of cassava and some people have cassava business such as tape or other snack foods. Bondowoso cassava is also a supplier of manufactured industrial materials. Problems arise related to not being matched by institutionalized efforts, where cassava farmers do their agricultural business individually and are downhill. In addition, cassava is considered cheap food so it gets less attention from the government. Cassava farming businesses to develop need institutions that are built in synergy between various institutions to improve competitiveness. The institution is a combination of farmers, businessmen, government, who work together and synergize in giving strength to cassava farming businesses to develop. The government through its policy of positioning cassava as an industrial material that is considered and developed from quality and quantity and has competitiveness and increases revenue. Behavior that strengthens competitiveness is done through product, price, promotion and distribution proportionally in the institution so that the sustainability of cassava farming business and able to face competition in the global market. Institutionality can protect cassava farmers' business from the pressure of government policy and capitalist competition in order to run parallel between civil society, state and business in realizing good governance

BUSINESS INSTITUTIONS OF CULTURAL FARMERS IN IMPROVING COMPETITIVENESS IN BONDOWOSO REGENCY