Institutional Dualism in Community-Based Octopus Fisheries: Interactions Between Customary Governance and Economic Institutions in Wakatobi, Indonesia

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Customary Law and Market Power: Institutional Dualism Shapes Wakatobi's Community Octopus Fisheries

In August 2026, researchers Juhardin, Ratnawati Tahir, Jumiati, Mohammad Natsir, and Syafiuddin from Universitas Muhammadiyah Makassar published a study examining the institutional dualism governing community-based octopus fisheries in Wakatobi, Indonesia. The investigation reveals that while traditional customary rules effectively govern marine resource conservation, local fishers remain economically dependent on market intermediaries for credit, operational financing, and price determination. These findings provide critical insights for coastal resource governance, demonstrating that sustainable marine management requires integrating traditional conservation authority with transparent, fair economic market structures.

The Challenge of Integrating Local Conservation and Market Realities

Small-scale fisheries are vital to coastal economies, yet their long-term viability depends on both ecological stewardship and economic stability. In many tropical coastal communities, traditional management rules co-exist alongside market networks that dictate financing, fish processing, and product distribution.

In Wakatobi, Indonesia, octopus harvesting represents a high-value commercial fishery tied closely to global export markets. However, a significant gap exists between resource conservation and market operations. Traditional customs successfully regulate harvest seasons and fishing zones, but fishers often lack independent access to capital and transparent market information. As a result, fishers frequently sell their catch under restrictive buyer-mediated arrangements that limit their bargaining power and economic returns.

Qualitative Research Methodology and Analytical Approach

To investigate these institutional dynamics, the research team from Universitas Muhammadiyah Makassar conducted an exploratory qualitative case study in a customary octopus-fishing community in Wakatobi, Southeast Sulawesi. Primary data were gathered through in-depth qualitative interviews, direct field observations, and institutional record reviews. Key participants included customary leaders, small-scale fishers, seafood buyers, fisher group administrators, and local village government representatives.

The qualitative data were organized and processed using NVivo software to perform open coding and thematic analysis. The researchers categorized institutional interactions into three main domains: customary resource governance, market-oriented economic institutions, and cross-institutional coordination gaps. This methodology enabled the team to trace decision-making structures, compliance mechanisms, and financial dependencies across the community.

Key Findings on Customary Governance and Market Dependencies

The study identified a distinct institutional dualism where customary resource management and commercial trade operate under separate rules and authorities:

• Effective Customary Conservation (Parimpari): The local customary system, known as Parimpari, successfully regulates harvest timing and temporary closure zones. Community compliance is maintained through collective deliberation, social monitoring, and traditional sanctions.
• Buyer-Mediated Economic Dependency: Credit, fuel supplies, and operational funding are primarily supplied by local seafood buyers and collectors. This financial bundling ties fishers to specific sales outlets and forces them to accept first-sale prices dictated by intermediaries.
• Weak Cross-Institutional Coordination: Routine communication mechanisms between customary authorities and market actors are virtually non-existent. Conservation decisions regarding harvest timing are made independently of market demand and price dynamics.
• Underutilized Fisher Collectives: Local fisher groups and cooperatives currently lack the financial capacity and organizational infrastructure required to offer independent credit, aggregate products, or negotiate prices directly with wholesale markets.

Policy Implications and Real-World Impact

The findings highlight that successful marine conservation policies cannot rely solely on ecological closures; they must also address market equity and financial independence for small-scale fishers. To bridge this gap, government agencies and non-governmental organizations must support local fisher cooperatives as bridging organizations. Empowering cooperatives to handle product aggregation, establish transparent pricing systems, and provide alternative credit options can reduce buyer dependence without undermining customary authority.

"The structural separation between resource stewardship and economic exchange leaves fishers vulnerable to asymmetric market power, even where customary authority is robust," states Dr. Ratnawati Tahir of Universitas Muhammadiyah Makassar. "Achieving sustainable coastal livelihoods requires creating transparent institutional interfaces that link customary conservation decisions with fair market access and diversified finance."

Connecting customary governance with collective market coordination will help ensure that ecological stewardship translates directly into improved social welfare and economic resilience for island communities.

Author Profile

Juhardin, S.Pi., M.Si., completed this study as a doctoral researcher in the Agribusiness Doctoral Program at the Postgraduate Program of Universitas Muhammadiyah Makassar, Indonesia. He co-authored the paper with his academic advisory team from the Agribusiness Doctoral Study Program at Universitas Muhammadiyah Makassar: Dr. Ir. Ratnawati Tahir, M.Si., Dr. Jumiati, S.P., M.Si., Dr. Ir. Mohammad Natsir, M.Si., and Dr. Syafiuddin, S.P., M.Si., whose research expertise spans agribusiness institutions, agricultural economics, supply chain management, and marine resource governance.

Source Information

• Article Title: Institutional Dualism in Community-Based Octopus Fisheries: Interactions Between Customary Governance and Economic Institutions in Wakatobi, Indonesia
• Journal: International Journal of Contemporary Sciences (IJCS), Vol. 4, No. 8, pp. 2151–2166
• Publication Year: 2026
• DOI: https://doi.org/10.55927/bjqwye26
• URL Jurnal: https://journalijcs.my.id/index.php/ijcs