The performance of the auction market of chili in the sandy coastal area of Indonesia

The performance of the auction market of chili has proven to have many benefits to the farmers in the sandy coastal area. However, not all of the auction systems have a good market performance. This research is aimed at knowing the performance of the auction market of chili in the sandy coastal area and its determinant factors. This research was conducted in Kulon Progo Regency from April to July 2018. The respondents were all managers of the auction market in the sandy coastal area. The analysis models used in this research are descriptive analysis and ordinary least square. The study showed that most of the auction markets did not have good market performance. Some of the problems faced by the auction markets occurred at the input and the process stage; since the markets had no legal entities, they did not make any memorandum of association and article of association, they had incomplete organizational structures, have weak monitoring systems from other parties, and required long payment periods to the farmers. To increase their performance, the auction markets need access to counseling or monitoring from other parties, collaboration with financial institution, and a higher number of administrators.