IDENTIFICATION OF PROSPECTIVE PRODUCT FOR THE DEVELOPMENT OF INTEGRATED COCONUT AGROINDUSTRY IN INDONESIA

Hermiza, Mardesci (2019) IDENTIFICATION OF PROSPECTIVE PRODUCT FOR THE DEVELOPMENT OF INTEGRATED COCONUT AGROINDUSTRY IN INDONESIA. International Journal on Advanced Science, Engineering and Information Technology, 9 (2). pp. 511-517. ISSN 2460-6952

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Abstract

Indonesia is one of the largest coconut producers in the world. However, diversification of processed coconut products in Indonesia is still far below other countries, such as the Philippines. Concerning this, the Indonesian government expects the development of an integrated coconut industry in Indonesia. This research aims to determine the process of determining processed products of coconut commodities that are prospective to be developed in an integrated manner in Indragiri Hilir, Riau, Indonesia. Seven stakeholders involved in the development of coconut agroindustry are interviewed. They are asked to fill in the questionnaire. The data obtained from the interviews and questionnaires were analysed using Fuzzy Group Decision Making technique. The independent preferences used are Multi Expert-Multi Criteria Decision Making and the Analytical Hierarchy Process (AHP) method. The results showed that prospective products developed for integrated coconut agro-industry were coconut oil, palm sugar, and shell charcoal. This result was obtained based on nine assessment criteria conducted by seven experts on ten alternative coconut products processed products. Coconut oil is very prospective to be developed if viewed from the aspect of the criteria of market opportunities and its linkages with the downstream industries. Moreover, coconut sugar also has an excellent prospect as the world market demand for palm sugar in Indonesia is quite significant, besides its absorption of labour and environmentally friendly. Shell charcoal is an industry with low production costs, but it has a great influence on the employment. The high demand of the world market also resulted in shell charcoal having high potential to be developed.

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