POTENTIAL AND DEVELOPMENT STRATEGY OF PALM OIL DOWNSTREAMING IN KUTAI KARTANEGARA DISTRICT: A CASE STUDY OF KEMBANG JANGGUT SUB-DISTRICT

Abstract

The potential availability of raw materials and downstream development strategies for processed palm oil products are important to study, therefore this study aims to find the potential of raw material commodities and analyze the downstream development strategy of processed palm oil products in Kembang Janggut District. The research study was analyzed descriptively. Data collection techniques were carried out using group discussion methods, questionnaires, and interviews. The data obtained were analyzed quantitatively to determine the potential availability of raw materials, then swot analysis to determine alternative strategies to be used for the development of downstream processed palm products. The results showed that of the 20 sub-districts in Kutai Kartanegara Regency, Kembang Janggut sub-district has the highest potential for oil palm production reaching 83.644 tons with the number of planters 2.052 households and an area of 7.138 ha with productivity reaching 13.370 kg/ha. The strategy for the development of processed palm oil from the SWOT analysis is in cell 1 positioning with aggressive strategy recommendations. This positioning shows that the downstream palm oil strategy policy is in a condition of having enormous strengths and opportunities. There are 5 (five) issues of palm processed development strategies, which are the priority scale of development, namely 1) utilization of institutions for continuity of production that can absorb labor; 2) optimizing labor absorption through increased use of raw materials; 3) optimizing the use of raw materials to increase production through partnerships; 4) optimizing the use of raw materials in order to increase added value; and 5) increasing the use of raw materials to take advantage of market availability.

Keywords

• downstream
• raw materials
• palm oil products
• development
• strategy