Prospects for the Development of Coconut and Oil Palm Commodities in Community Plantations in North Aceh Regency

Abstract

This study discusses commodities of oil palm and coconut plantation in North Aceh Regency. This study aims to analyze the prospect for the development of oil palm and coconut commodities using cost and profit analysis methods and financial feasibility analysis. The results of the analysis show that the production cost of oil palm plantations is higher than that of coconut commodities. This is due to differences in garden maintenance costs. Coconut farmers almost never maintain the plantation, while oil palm farmers maintain their plantation even though it is not recommended. The results of the profit analysis show that both businesses provide profits to farmers. Furthermore, the results of the feasibility analysis show that both businesses are feasible, as indicated by the value of NPV > 0, Net B/C > 1 and IRR > of the prevailing interest rate and the BEP is still in the economic life of the plant. However, overall oil palm plantations are more profitable than coconut plantations. In addition to having considerable potential, oil palm and coconut plantations contribute to regional economic development by increasing farmers’ incomes and providing employment and business opportunities for the majority of the local community. Therefore, oil palm and coconut plantations have great prospects to be developed in North Aceh Regency.