ANALYSIS OF POTENTIAL AND PROSPECTS OF PATCHOULI BUSINESS DEVELOPMENT IN ACEH UTARA DISTRICT, INDONESIA

Abstract

Indonesian patchouli oil products are able to dominate the patchouli oil market share in the world up to 80-90%. Therefore, patchouli commodity needs to be developed in areas that have the potential and prospects for patchouli plantations to support economic growth. The Future Market Sights (2+018) states that the patchouli oil market, globally, is expected to grow at a CAGR of 2.8% in terms of revenue in the coming years. Revenue generated from the global patchouli oil market is projected to reach US $ 86.6 million by 2028. The research was conducted in Aceh Utara District, which is one of the administrative districts in Aceh Province. This research was conducted since November 2019 until November 2020. The object of research is patchouli farming and patchouli oil refining. The scope of this research is limited to the potential and prospects of patchouli farming development in Aceh Utara Regency because the area is one of the patchouli producers in Aceh Province. The research method and data collection used in patchouli farming and patchouli oil refining are census methods. The hypothesis was tested using financial analysis to determine the prospects for the development of patchouli oil farming and refining in Aceh Utara District, whether it is feasible to develop or not. The methods used to see the feasibility of patchouli oil refining are NPV, IRR, Net B / C, and Payback Period. Judging from the financial aspect using financial feasibility analysis tools, the NPV value is Rp. 673,215,682, IRR of 43.15%, Net B / C of 182.37, and Pay Back Period (PBP) can be returned in the second year of the first month. With all of the aspects considered to have met the eligibility criteria, the patchouli oil refining business in Aceh Utara District is feasible to develop financially.

Keywords

• patchouli
• development prospects
• financial feasibility
• farming