Environmental Costs of Supply Chain Inefficiencies in the Indonesian Potato Agro-Industry: A Hybrid Situational Analysis with Life Cycle Assessment

Abstract

Modern agricultural supply chains often emphasize sophistication over resilience, a strategy that backfires in regulated developing economies. This study investigates the environmental implications of structural mismatches in the Indonesian potato agro-industry, comparing the import-dependent Industrial Stream (Stream A) and the fragmented Local Stream (Stream B). Using a mixed-methods approach combining Situational Analysis and Gate-to-Gate Life Cycle Assessment (LCA), this work identifies the “Inventory Paradox.” Results show that Stream A fails under regulatory pressure, forcing a Make-to-Stock shift where emissions spike to 2,659.99 kg CO₂eq/ton—6.4% higher than the low-tech Stream B (2,500.80 kg CO₂eq). This inefficiency stems from a “double penalty” of cooling loads and material degradation, whereas Stream B benefits from energy-free logistics. To address this, the study proposes an Integrated Circular FSCN as a conceptual model introducing an Intermediate Valorization Center to recycle local tubers. This framework theoretically decouples the industry from import volatility while potentially reducing carbon intensity within the network. Findings suggest that in tropical contexts, circularity and logistics speed determine sustainability more than machine efficiency.