Agroindustry

Aceh’s leading agroindustry sector is an opportunity for you to develop downstream industry in plantation, agriculture, fishery and livestock products, with the support of the availability of raw materials from farmers and large plantations.

PLANTATION

The role of private business in supporting plantation products development such as palm oil, coffee, cocoa, patchouli and other products is considered important.

1. Palm Oil

Oil palm is the largest plantation crop in Aceh by volume and area and economic value. The palm oil industry has significant growth potential as a major source of supply for food products and biofuels. With the increase in production value, Aceh encourages the construction of CPO factories and their derivative products.

Foto : Palm Oil Plantation owned by PT. Surya Panen Subur, Nagan Raya

Cooking Oil Processing Plant in Nagan Raya

The development of palm cooking oil consumption at the household level in Indonesia during 2002-2016 generally increased with an average increase of 5.81% per year. The prediction of palm cooking oil consumption at the household level for 2017 is 11.58 liters/capita/year, this consumption has decreased compared to 2016, while 2018 and 2019 show that palm cooking oil consumption has slightly increased. Palm cooking oil consumption in 2018 and 2019 is predicted to be 12.17 liters/capita/year and 12.79 liters/capita/year, respectively.

Considering the opportunity, we offer investment in cooking oil factory with the capacity of 21,3 ton/hour, margarine/butter factory with capacity of 5,7 ton/hourand Crude Palm Oil (CPO) factory with capacity of 30 ton/hour.

Interesting Facts:

  • Aceh has an area of 242,819 hectares of oil palm plantations managed by the community with an annual production of 444,436 tons in 2020.
  • Aceh has more than 60 CPO factories
  • The West Coast region of Aceh is the largest oil palm plantation area in Aceh, so it is feasible to build a cooking oil factory.
  • A Feasibility Study is available for the construction of a cooking oil factory in Nagan Raya with a large investment of IDR 115 billion with an estimated return on investment of 3 years and 9,908 months

2. Coffee

Coffee plantations in Indonesia covered an area of approximately 1,240,000 hectares, consisting of 933,000 hectares of Robusta coffee plantations and 307,000 hectares of Arabica coffee plantations. More than 90% of the total plantations are cultivated by small-scale farmers or managed by the community. Indonesia is the only country that has special coffee based on Geographical Indication (GI). High quality Arabica coffee is mostly produced by Aceh.

Currently, the production of Gayo coffee is being increased through extension and agricultural intensification in order to meet the demand for both the domestic and foreign markets.  

Aceh Coffee Processing Industry

The government is pushing to increase the added value of Acehnese coffee, this is a great opportunity to build a modern coffee processing industry. The popular culture of coffee consumption in Aceh is also a good prospect for developing the Gayo instant coffee processing industry. Project Objective: Development of Instant Coffee Processing Industry Based on market observations, currently, at least 10 brands of instant coffee are sold in the market, this indicates an increase in instant coffee consumption, therefore the prospect is very promising for development.

Interesting Facts:

  • Arabica coffee production from the Gayo region is the largest in Asia.
  • Gayo Coffee has received several international certifications due to its excellent quality, especially its organic coffee which has a fair trade certificate with Geographical Indications (GI).
  • Coffee has become part of the lifestyle of the Indonesian people, the opportunity to establish a coffee processing industry is very potential to be developed.
  • To build an instant coffee factory, an investment of US$ 6,258,377 is required (factory construction and working capital: US$ 3,333,333 operational costs: US$ 2,925,043 *(US$ 1 = IDR 12,000).
  • Return of Investment = 6 years.

3. Cocoa (Chocolate)

ACEH is one of the main cocoa producing regions in Indonesia. The plantations spread across almost all districts, from Pidie in the eastern part of Aceh, to Simeulue Island on the outer edge of Aceh Province. The development strategy is to create a sustainable cocoa downstream industry. The upstream industry will focus on increasing added value in the downstream sector. Southeast Aceh, Pidie Jaya, East Aceh, Pidie and North Aceh as cocoa producing areas are suitable for the development of the chocolate processing industry.

Rehabilitation, Development of Cocoa Farms and Processing of Cocoa Products in Pidie Jaya

Cocoa is a commodity that is cultivated by the most planters, a commodity that has the potential to be developed and economically improved. Pidie Jaya has land suitability that supports high production. The locations are sub-districts; Bandar Baru, Panteraja, Trienggadeng, Meureudu, Meurah Dua, and Ulim. Bandar Dua is a location for cocoa development with an area of 1,733 ha, land ownership status belongs to the community.

Cocoa Processing

The high consumption of chocolate both domestically and abroad such as the European Union region, especially for processed cocoa which has a higher value than cocoa beans, could become a market opportunity for cocoa in Pidie Jaya district. Currently, there is also a growing trend of direct consumption of cocoa beans.

Foto : Cacao harvest, Pidie Jaya

Interesting Facts:

  • Aceh is one of the cocoa bean producing areas with a distinctive taste (nut flavor) in Indonesia, this characteristic is influenced by air temperature, soil acidity, rainfall to companion trees.

4. Patchouli

According to research, Aceh patchouli oil contains 30 – 34% patchouli alcohol with a yield of 3%, which makes it the best patchouli in the world. The main areas of patchouli production; South Aceh, West Aceh, Gayo Lues, Aceh Jaya and Aceh Besar districts, are suitable areas for the development of the patchouli processing industry.

Construction of Aceh Patchouli Oil In order to build an economic-scale patchouli processing plant at the corporate level with an area of 10 hectares, the estimated investment is Rp. 2,900,000,000. The processing plant will operate to receive the dry leaf yield from an area of 10 hectares. To support the optimization of the processing process, PDAM and PLN network installations will also be built. And to avoid a sudden power outage, a generator set is also need to be prepared.

Photo : Patchouli Plantation, Aceh Jaya

Interesting Facts:

  • Indonesia is a major supplier of Patchouli Oil to the world market, it supply for about 90% of international trade.
  • Aceh is the largest patchouli oil producing area in Indonesia.
  • Aceh can produce about 1,300,000 tons per year, with a value of around US$ 50 million.
  • Patchouli oil produced in Aceh has obtained the Geographical Index (IG) certification.

5. Construction of Sauce Industry, Aceh Tengah

One of the characteristics of Indonesian cuisine is that it is flavorful, sauce is one of the complements of Indonesian cuisine, this makes sauce a potential investment to be developed. The sauce industry is considered resilient in line with the availability of sufficient raw materials in Indonesia.

Aceh Tengah district has a big prospect to become one of the areas to establish a sauce industry in Aceh, this is supported by the availability of raw materials for the sauce industry such as: tomatoes, red chilies, cayenne pepper, garlic which are sufficient in 14 districts in Aceh Tengah.

Photo: Tomato Harvest, Aceh Tengah

Interesting Facts:

  • Fresh raw materials are available such as tomatoes, chilies, onions from the farmers’ field that will maintain the quality of the taste and aroma of the sauce that will be produced.
  • The construction of this sauce factory with a capacity of 40 tons/year with an estimated investment of Rp. 1.5 billion and Net Present Value of IDR 248,319,450, Internal Rate Return 20%, Discount Factor (DF) 14% for 5 years and Benefit Cost Ratio of 1.78.

CATTLE FARM

The area suitable for cattle grazing in Aceh is 18,569 Ha. To develop this potential, the Government of Aceh has drawn up a Master Plan for the Development of Livestock Areas which is divided into three development areas, namely the Industrial Center Area, the Fattening Center Area and the Breeding Center Area.

The strategy of the Aceh beef development project includes: Development of farms with a nucleus-plasma scheme, building a cattle breeding management system (grazing or feedlot), building a fattening place/feedlot in each district with halal beef processing and meat distribution. Targets for initial development: Aceh Besar, Pidie, Bener Meriah, Aceh Tengah, and Nagan Raya.

Interesting Facts:

  • Aceh is the second largest cattle producing area in Sumatra.
  • There is a large area of land available for cattle development.
  • Having local wisdom in handling feed (straw storage) with a touch of technology will ensure the availability of feed for the Aceh cattle industry.
  • With the status of a region that applies Islamic law, Aceh can become a world-class Halal Meat production center.

FISHERIES

Aceh is rich in potential marine and fisheries resources, the area of Aceh’s waters reaches 295,370 Km3 consisting of 56,563 Km3 in the form of territorial and archipelagic waters and 238,807 Km3 in the form of Exclusive Economic Zone (EEZ) waters, with a coastline length of 2,666.3 km. The length of this coastline and the vast seas of Aceh hold very promising fishery potential to be developed such as capture fisheries, aquaculture to the processing industry.

1. Metro Mina Park, Aceh Timur

Regency of Aceh Timur has natural resources, from forests, gas to marine and fisheries which make East Aceh the largest producer of fishing in all of Aceh. The coastal fishing port of Kuala Idi, which is the largest fish producer in all of Aceh, is the center of activity for fishermen in East Aceh.

The development of the Metro Mina Park in East Aceh is expected to have an integrated fishery area starting from the center of production, processing, marketing, services/or other supporting activities on an area of 62 hectares.

Photo: Design of Metro Mina Park Idi, Aceh Timur

Interesting Facts:

2. Fishing Port of Sawang Ba’U, Aceh Selatan

Sawang Ba’u is the center of fish catch production in South Aceh, with a total of 1,604 fishermen and 132 fishing vessels. There are 60 10 GT vessels, and 78 non-motorized vessels. The fishing gear used is purse saine net and the main catches are skipjack and tuna.

On a port area of 1.5 hectares and will be developed again in the future, the potential for fisheries in Sawang Ba’u is very promising; local governments are expected to provide the necessary facilities to encourage the private sector to invest in the construction of fish processing plants.

Photo : Fishing Port Sawang Ba’U, Aceh Selatan

Interesting Facts:

  • Sawang Ba’U is a fishing port that produces tuna and skipjack on the west coast of Aceh