Analysis of Potential and Prospects of Patchouli Business Development in Aceh Utara District, Indonesia

Sensitivity of patchouli oil refining business (Case study: Patchouli Oil Agro, Tompira, North Morowali)

“…Processing of essential oils in Indonesia is still at the upstream level, only using traditional methods. Such a situation has resulted in Indonesia's inability to compete with other producing countries, which can guarantee the amount of production with consistent quality [4,5]. It is also in line with the opinion of Arpi et.al [2] and Rusli [6] that the current condition of the patchouli oil agroindustry in Indonesia, in general, has not shown excellent performance.…”

“…In sensitivity analysis calculations, every possibility is tried to carry out re-analysis activities, and this is important to do because the business analysis is based on assumptions that contain much uncertainty, and there will be changes that will occur in the future. There are two scenarios used in the Sensitivity analysis of the Agro Patchouli Oil Refining business [5], namely, (i) an increase in transportation costs of 33% due to the purchase of raw materials far enough in other areas with the highest percentage increase in the last three years; (ii) what is the maximum change from the increase in patchouli raw material prices that can still be tolerated so that the patchouli oil refining business remains viable. The calculation of Sensitivity Analysis can be seen in Table 11.…”