ANALYSIS AND DESIGN OF A SUSTAINABLE SMART PATCHOULI AGROINDUSTRY DEVELOPMENT SYSTEM

Abstract

Indonesia makes over 95% of the world's nilam oil, but the country's nilam agroindustry still has problems like low productivity, inconsistent quality, reliance on old-fashioned distillation technologies, and inadequate communication between value chain participants. The issue restricts the supplementary benefits that farmers and local enterprises ought to receive. This paper examines the patchouli agroindustry in Sukabumi Regency and suggests a framework for the creation of a sustainable and intelligent system. This study utilizes value chain analysis to delineate the flow of materials and information, SWOT analysis to evaluate strategic situations, and the Business Model Canvas (BMC) to formulate a cooperative-oriented business model. Surveys as well as interviews, FGDs, and field observations were conducted to collect the information from farmers, cooperatives, distillers and traders. The research results imply that village cooperatives has important strategic role as collectors who can help to enhance quality and increase the farmers bargaining position by cutting their dependence of intermediaries. According to SWOT analysis, this industry is in Quadrant II (SO Strategy), suggesting that there is a need for modernization of the distillation processes, cooperative management should be enhanced and quality standards set in place. The proposed-based BMC contributes to a consistent and traceable supply of “blending-ready” oil in an overlapping feed stock structure and promotes the local SMEs collaboration. This material structure also means that the digital can be constantly used to keep things more sustainable.

Keywords:
patchouli agroindustry; Value chain; Cooperative model; SWOT analysis; Sustainable development