The Impact of Montara Compensation on Business Sustainability and The Potential for Increased Profitability Amongst Small-Scale Fishermen in Rote Ndao
DOI:
https://doi.org/10.24269/ekuilibrium.v21i2.2026.pp557-571Keywords:
Business sustainability, Montara compensation, Small-scale fisherman, SWOT analysis, Rote NdaoAbstract
This study aims to analyse the extent to which the Montara compensation has impacted the business sustainability and increased profitability of small-scale fishermen in Rote Ndao Regency. Previous research on oil spills has generally focused on direct economic losses and the fairness of compensation but has not examined how compensation translates into business sustainability and long-term profitability. This study employs a descriptive qualitative design with a predominantly qualitative approach, supported by SWOT-based strategic analysis using the IFAS and EFAS matrices. The research informants were fishermen receiving Montara compensation in 2024 in Rote Ndao. The research findings indicate that the strategic position of the fishermen’s businesses lies in Quadrant I (aggressive-proactive) with an IFAS score of 0.12 and an EFAS score of 0.12. Although compensation capital is available, low financial literacy and a consumerist mindset are hindering the transformation of Montara’s compensation into a productive asset. The SO strategy is the top priority, supported by the WO, ST and WT strategies to mitigate internal weaknesses and external threats. This research contributes to the fields of accounting and business management in terms of resource allocation, financial behaviour, business sustainability and increased profitability. In practical terms, this study recommends a hybrid policy for the government and relevant stakeholders to integrate technical support, institutional strengthening, financial literacy and fair market access in order to support the sustainability of small-scale fishing businesses and enhance their long-term profitability in Rote Ndao.
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