Analysis of the Application of the Warehouse Receipt System (WRS) for Patchouli Oil Commodity

Abstract

AbstractPatchouli oil has been one of the industrial raw materials for ages. Several industries such as perfumery, pharmaceutical, and herbal industries use this commodity as the main raw materials. In the 90s, this commodity became well known among farmers, especially in the Aceh Jaya district because it has a fairly high selling power which makes most farmers in the area focus on developing patchouli plantations. With this lucrative potential, many people have contributed and taken advantage of the patchouli oil industry opportunities. BSN has issued a quality standard of patchouli oil in the SNI document 06-2385-2006 with the purpose that every industry can refer to a resembling standard. However, along with its development, the phenomenon of a decline in the selling price of patchouli oil began to emerge, which has become one of the main problems faced by stakeholders in the patchouli oil trading network, especially for farmers. It is difficult for farmers to delay their sales when the price drops, which leads to a decrease in their income. Instead of developing patchouli plantations, farmers are now starting to gradually convert the land to other commodities to maintain their economy. The identification of this problem starts from all entities that contribute to the supply chain system to the consideration of the contribution from each entity to the patchouli oil industry in Aceh Jaya Regency. This study examines the benefits of implementing a Patchouli Warehouse Receipt System (WRS) or Sistem Resi Gudang (SRG) which aims to provide alternative solutions in stabilizing selling prices, especially to farmers’ income. With this price stability, farmers can increase the productivity of patchouli oil in hope that they can optimally supply the world's patchouli oil needs.