Analytical hierarchy process (AHP) in Expert Choice for determining superior plantation commodities: A case in East Kolaka Regency, Indonesia

Abstract

This study aims to determine eminent commodity plantations in East Kolaka, Indonesia, with consideration criteria leading the commodities to include cocoa, coffee, coconut, and palm oil as alternatives. The method used is analytical hierarchy process (AHP) based on Expert Choice 11 software. The AHP is a method of decision-making on the problem of determining priority options from various alternatives. The use of AHP begins by creating a hierarchical structure of the problem to be studied. The pairwise comparison matrix is used to form relationships in the structure. In the pairwise comparison matrix, the weight of each criterion is sought by normalizing the pairwise comparison matrix. The maximum eigenvalues and normalized eigenvectors will be obtained from the matrix. In the process of determining the hierarchical weighting factor as well as the evaluation factor, a consistency test must be carried out with CR<0.100. The relative weighing of selection criteria was: eligible for business development (EBD) 26.7%, contribution to community income (CCI) 18.0%, value-added (VA) 13.3%, local government policy (LGP) 11.0%, land suitability (LS) 10.5%, market orientation (MO) 10.7%, and 9.7% towards environmentally-friendly (TEF) criteria. The relative selection rates of the leading commodities in East Kolaka Regency, were cocoa (52.7%), oil palm (18.6%), coconut (13.9%), and coffee (14.7%).

Keywords

• expert choice 11
• analytical hierarchy process
• leading plantation commodities