Abstract
The potential of coconut owned by Padang Pariaman Regency with production reaching 35,436 tons in an area of 40,755 hectares strongly supports the development of agroindustrials in the countryside. The development of rural industries will create new jobs so that the community economy will increase. Coconut has a lot of derivative products, one of which is cocofiber produced from coconut coir. Coconut coir itself is one of the remaining coconut products that can be processed so as to increase the value of the product. Location determination and financial analysis can help potential investors to make cocofiber agroindustry development decisions. The method used to determine the location of the factory is gravity location model (GLM), using data on the coordinate point of coconut IKM in Kab. Padang Pariaman. For financial analysis is calculated using Net Present Value (NPV) and Internal Rate of Return (IRR). Both of these methods are expected to illustrate whether the development plan of the cocofiber industry in kab. Padang pariaman should be done or not. Based on the results of calculations using the GLM method, the optimal factory location selected is in the Limau River area of Padang Pariaman Regency with coordinate points (-0.55904, 100.0827). NPV showed a positive value and the IRR gave a result of 11.6%. The results showed that the calculation of NPV and IRR obtained results that showed that the construction of a cocofiber factory on the Limau Kab. Padang Pariaman River was feasible to carry out.
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