The Moral Economy of Palm Sugar: Sustaining Livelihoods in Madurese MSMEs Beyond Profit Rationality
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The study aimed to investigate the unique economic rationality of Madurese palm sugar Micro, Small, and Medium-sized Enterprises (MSMEs), despite marginal financial returns and the absence of formal cost accounting based on Polanyi’s Substantive Economic Theory and Scott’s Moral Economy. We were examined as MSME operators using a phenomenological method. The results showed that economic decisions were deeply embedded in social relations, driven by a sense of responsibility toward food security and cultural heritage rather than capital accumulation. Palm sugar was conceptualized as a life-sustaining asset, linking subsistence to social reproduction within household-based MSMEs. The disregard for formal cost calculations came from the utilization of internal reciprocal inputs and the "safety-first" principle, which were characteristic of moral economies. This study challenged profit-centric agricultural views, offering policy insights to support resilient traditional production by recognizing diverse economic rationales and the specific needs of agricultural processing MSMEs.
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