The agricultural sector has an important role in economic activity in Indonesia, which can be seen from its contribution to the Gross Domestic Product (GDP), which is quite large, namely around 13.7% in 2020 or is second only to the Manufacturing Industry sector of 19.88%. The sub-sector that has quite a large potential is the plantation sub-sector. The contribution of the plantation sub-sector in 2020 is 3.63% of total GDP and 26.50% of the Agriculture, Forestry and Fisheries sector or is in first place in this sector [1].

The cocoa commodity is a leading commodity in the Indonesian economy, namely as a foreign exchange earner, a source of income for farmers, creating jobs, encouraging agribusiness and agro-industry as well as regional development. as one of the world's 3rd largest producing countries, [2]. In Central Sulawesi Province, cocoa is the first leading commodity for plantation crops and is the third leading commodity out of all agricultural commodities. Statistical data on cocoa production in Central Sulawesi in the last three years has tended to decline, with an average rate of decline in production of 2,320 tons/year [2]. Central Sulawesi's cacao trade volume reached 147,390 tons with a value of Rp. 3,323,500,000 [3].

Development of Organic Cocoa Plants

The plantation sector is a mainstay for the government of Southeast Sulawesi and the most potential plantation crop planted by the community is cocoa. In 2005, Central Sulawesi became one of the largest cocoa producers in Indonesia where the share of Central Sulawesi cocoa reached 17.73%, with a production of 132,740 tons. The area of cocoa plantations continues to increase, due to a policy from the local government that includes cocoa as a priority crop which is encouraged. In addition to increasing the planting area, increased production can also be accelerated through increasing productivity. This increase in productivity has been carried out by the local government by providing various trainings, this has also been carried out by non-governmental organizations, private companies and assistance from abroad.

The existence of various cocoa improvement programs, for farmers is a real step to participate in advancing cocoa agribusiness. This is illustrated by the seriousness in participating in all existing programs, even farmers who happen to be unable to participate in the training program will seek information from participating farmers. Cocoa plants have become Central Sulawesi's biggest commodity, this has been proven by increasing the area of land and increasing production, because the local government has created a special program to improve the quality and quality of cocoa production, by providing various kinds of assistance to achieve quality that is capable compete with other regions that make cocoa a superior commodity. The condition of the cocoa plants that have been attacked by pests and weeds and the condition of the stems that are increasingly aging and brittle so that the cocoa plants are no longer able to reproduce compared to before.

That is what makes the local government provide assistance so that the cocoa plants can produce as they should. Attacks by pests, weeds and the aging of cocoa tree trunks and the fragility of branches, has prompted the local government to provide assistance to the community by allocating a special budget to purchase fertilizers, poisons for eradicating pests and weeds, as well as providing teaching assistance to all cocoa farmers in order to gain knowledge on caring for cocoa plants. and got satisfactory results, by forming farmer groups in each village, so that the allocation of aid was rather easy and the lessons could be easily understood because the teaching was systematic and accompanied by practice.

Sectors of Cacao Industry Development in Indonesia

The sectors that are directly or indirectly related to the development of the downstream cocoa industry in Indonesia are: the industrial sector, the financial sector, the public works sector, the transportation and telecommunications sector, the agricultural sector, the trade sector and the energy sector. Overall, sectoral programs and activities related to the development of the downstream cocoa industry are coordinated by a coordinating ministry.

Industrial Sector

In the industrial sector, cocoa industry development policies include macro and micro policies. The macro policy for the development of the cocoa industry is regulated and directed by the National Industrial Policy and Industrial Cluster Policy [4]. In the National Policy it is mentioned about the industries and in the future, including: the Agro Industry, the Transportation Equipment Industry and the Telematics Industry. The cocoa industry is included in the Agro Industry, which includes the cocoa and chocolate processing industry. The medium-term policies issued by the government through the Ministry of Industry are: Increasing guaranteed supply of raw materials; Diversify cocoa and processed chocolate products; Optimizing the capacity of the domestic cocoa industry; Improving the quality of fermented cocoa beans and cocoa products (Good Manufacturing Practices (GMP), Hazard Analysis and Critical Control Points (HACCP) and Halal Certification) and application of product certification (SNI); Increasing international cooperation (market, technology, promotion and investment); Developing cocoa processing technology; Improving HR competency. Long-term policies include: Developing non-food cocoa products; Build cocoa industry development centers in production centers; Promoting the downstream/derivative industry of cocoa products. Meanwhile, in carrying out its strategy,

The Ministry of Industry compiles and determines a guide map (Road Map) for the development of priority industrial clusters. Industry clusters are a group of core industries that are concentrated regionally and globally that are interconnected or interact socially dynamically, both with related industries, supporting industries and supporting services, economic infrastructure and related institutions in increasing efficiency, creating assets collectively and encouraging innovation so that create competitive advantage. Core Industry is an industry that forms the basis for the development of national industrial clusters. Supporting Industry is an industry that acts as a supporter and supporter in the development of the core industry in an integrated and comprehensive manner. Priority Industries are industrial clusters that have high prospects for development based on their ability to compete in the international market and industries whose production factors for competition are sufficiently available in Indonesia.

Through the national industrial policy, the cocoa industry is placed as one of the high priority industries because it is considered to have high prospects for development based on its ability to compete in the international market and the production factors available in Indonesia. The consequence is that the cocoa industry can obtain facilities in the form of fiscal and non-fiscal incentives.

Agriculture Sector

The general aim of agricultural policy is to promote agriculture, to make agriculture more productive, production and production efficiency to increase and consequently the level of livelihood and welfare of farmers increases. To achieve this goal, the central and regional governments issue certain regulations such as: Laws, Government Regulations, Presidential Decrees, Ministerial Decrees, Governor Decrees and others. Agricultural policies on cocoa commodities are generally contained in plantation policies.

The objectives of developing cocoa agribusiness cannot be separated from the objectives of managing plantations as stated in the law, namely:

• Increasing people's income

• Increasing state revenue

• Increasing the country's foreign exchange earnings

• Provide employment opportunities

• Increasing productivity, added value and competitiveness

• Meet the needs for consumption and raw materials for domestic industries 

• Optimizing sustainable management of natural resources

Various policies in the agricultural sector specifically for cocoa commodities, including fertilizer subsidy policies. Reported by Arsyad et al. [5], that fertilizer subsidies have had a positive impact on cocoa production and exports. Given the importance of cocoa productivity and quality for added value and competitiveness, the role of extension workers who empower farmers is very central. However, the performance of counseling is still limited and not yet effective.

Arsyad [5], states that in general, an important step that must be taken by the government in efforts to develop an agro-industrial system is to integrate the various sectors and actors involved in the agro-industrial system so that coordination and collective action can be provided to resolve various problems that exist in the agro-industrial system. The same thing was conveyed by Arsyad [5], who stated that in formulating policies for the development of cocoa agro-industry systems, the government must be able to satisfy all parties involved, especially small farming communities. The conclusion regarding the role of agricultural sector policies in the development of the cocoa industry is to ensure a sustainable increase in cocoa productivity and quality. Agricultural sector policies include aspects of empowering farmers through extension policies, increasing support for the expansion and rehabilitation of cocoa plantations through the provision of superior seeds.

Financial Sector

Financial sector policies related to cocoa include revenue policies in the form of export taxes or export duties and regional tax and retribution policies.

This type of research is descriptive and quantitative research. Descriptive research is research that explains the strategy for developing organic cocoa in Palolo District. Then quantitative research is research that analyzes data on organic cocoa development strategies in Palolo Sub-District which are published by the Sigi District Agriculture Service, the Central Sulawesi Province Plantation and Livestock Service Office and the Sigi District Central Bureau of Statistics. he population in this study were all farmers in Palolo District, totaling 123 families and there were 6 farmer groups. more clearly seen in the Table 1.

Table 1: Research Population

Source: Agriculture Office of Sigi Regency, 2023

Samples

The research sample is representative of the population. Samples were taken from the highest number of three household heads from the population. For more details, see the Table 2.

Table 2: Research Sample

Source: Population, processed data, 2023

SWOT Analysis

The analysis used in assessing the Cocoa Commodity Development Strategy and Increasing Farmer Income in Sigi Regency is SWOT analysis (strengths, weaknesses, Opportunities and Threats). It means strengths, weaknesses, opportunities and threats. SWOT analysis according to Freddy Rangkuti in the book SWOT Analysis a technique for dissecting business cases [6], "SWOT analysis is the systematic identification of various factors to formulate organizational strategy. SWOT analysis has an important role in the progress of organizations which have recently become increasingly competitive in achieving their goals. SWOT analysis can be described as follows.

Analysis of Organic Cocoa Farming Income in Paloo District

Farm Business Costs: Farming costs can be classified into two, namely fixed costs and variable costs. Fixed costs are costs incurred by farmers in their farming activities and the amount is not affected by the size of the production produced, while variable costs are costs incurred for farming activities and the amount is strongly influenced by the production produced by farmers. The fixed costs incurred by the organic cocoa farmers in the research locations are the cost of depreciation of tools, such as the cost of buying machetes, sprayers, pole shears and pruning shears. Then the variable costs incurred by farmers are the addition of fertilizers, pesticides and labor. Total fixed costs and variable costs incurred by organic cocoa farmers. Details of organic cocoa farming costs are shown in the Table 3.

Table 3: Cost of Organic Cocoa Farming in Palolo District

Source: Primary Data After Processing, 2023

Based on Table 3 shows that the costs incurred by farmers before using the side grafting technique consist of fixed costs of Rp. 133,458, which consist of machete depreciation costs of Rp. 14,961, pole shears depreciation costs Rp. 16,267, sprayer depreciation costs Rp. 44,270, the cost of depreciation of pruning shears is Rp. 12,628, the total average fixed cost of depreciation is Rp. 88,125/year, the cost of land tax is Rp.45,333/year. Variable costs of IDR 3,782,667, consisting of Phonska fertilizer costs IDR 442,000, SP 36 fertilizer costs IDR 308,000.

The total cost of fertilizer is Rp. 750,000/year, the cost of pesticides which consists of the cost of onici pesticides is Rp. 424,000, the cost of herbicides which consists of gramoxone is Rp. 140,000, the total cost of pesticides is Rp. 564,000/year, the labor costs consist of costs Pruning labor costs Rp. 432,667, spraying labor costs Rp. 748,000, fertilizing labor costs Rp. 480,000, harvesting labor costs Rp. 800,000, total labor costs Rp. 2,468,667/year. So the total cost incurred by farmers before using the side grafting technique is IDR 3,916,125/year.

Acceptance of Organic Cocoa Farming Business

According to Rahim, A. et al. explained that farming acceptance is the multiplication of the production obtained by the selling price. From the results in this study, it can be seen that the acceptance of organic cocoa farmers for one year is shown in the Table 4.

Table 4: Acceptance of organic cocoa

Source: Primary Data After Processing, 2023

Based on Table 4, it shows that the average amount of organic cocoa production is 343 kg, where organic cocoa production has decreased due to the old age of the cocoa plants while the selling price is Rp. 48,000/kg, so the average income earned by organic cocoa farmers is IDR 16,464,000/year.

Income from Organic Cocoa Farm

Income is the amount of income received by farmers for their work during a certain period, whether daily, weekly, monthly or yearly. Business activities will ultimately generate income in the form of monetary value received by farmers from the sale of production minus the costs incurred. Revenue is revenue or gross income reduced by the total cost of production or revenue minus fixed costs and variable costs. The income of organic cocoa farmers can be seen in the Table 5.

Table 5 Organic Cocoa Farming Income/semester/6 months

Source: Primary Data after being processed, 2023

Based on Table 5, it shows that the amount of production obtained by organic cocoa farmers is 343 Kg with a selling price of Rp. 48,000/Kg, so that a total revenue of Rp. 16,464/semester/6 months is obtained, while the fixed costs incurred by farmers are Rp. 133,458 and the total variable costs are IDR 3,782,667, so the total costs incurred are IDR 3,916,125/semester/6 months. The total income of IDR 16,464,000/ semester/6 months earned by farmers is reduced by the total cost of IDR 3,916,125/semester/6 months so that farmers' income is IDR 12,547,875/semester/6 months.

Analysis of Organic Cocoa Development Strategies in Farmer Groups in Palolo District

The process of making strategic decisions is always related to the development, mission, goals and strategies of Farmer Groups. In preparing the cocoa processing development strategy, the research conducted a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) by first identifying internal and external environmental factors which included strengths, weaknesses, opportunities and threats to Farmer Groups in Palolo District, Sigi Regency.

Based on Table 6, the alternative strategy for developing organic cocoa processing in Farming Groups in Palolo District, Sigi Regency can be explained as follows:

Table 6: SWOT Matrix Organic Cocoa Processing Development Strategin the Farming Business Group in Palolo District

Source: Processed by Researchers, 2023

• Strategy (Strenghs Opportunities/SO): Strategy Strengths Opportunities (SO) is to create a strategy that uses strengths so that existing opportunities can be utilized. Increase the availability of organic cocoa raw materials because the Farmer Business Group receives assistance from the government. Then increase the diversification of processed products through improving the quality of educated human resources. Increasing production through product innovation meets the demands of the local and international community

• Strategy (Strenghs Threath): The Strengths Threath (ST) strategy is to create a strategy that uses strengths to overcome threats. Procurement of professional workforce according to the field for product development innovation. Improving raw material quality standards through counseling and training provided to partners. Expansion of market share through processed product innovation

• Strategy (Weakness Opportunities): Weakness Opportunities (WO) strategy is to create a strategy that minimizes weaknesses to take advantage of opportunities. Increase skilled and experienced manpower so that they can compete with other Farming Business Groups in the Province of Central Sulawesi

• Strategy (Weakness Threat): The Weaknes Threath (WT) strategy is to create a strategy that minimizes weaknesses to be exploited by threats. Improving the process of raw material quality standards so that climate differences do not affect the quality of organic cocoa raw materials in Palolo District

Based on the results of research and discussion it can be concluded as follows:

• Revenue from organic cocoa farming in Palolo District is Rp. 12,547,875 per semester/6 months with an RC Ratio of 4,204. so that Organic Cocoa Farming Business is feasible to be developed

• The results of the SWOT analysis show that the Strengths Opportunities Strategy is:

• Increasing the availability of organic cocoa raw materials to become the largest Farming Business Group in Palolo District, Sigi Regency

• Increasing the diversification of processed products through improving the quality of educated Human Resources

• Increasing production through product innovation meets the demands of local and national communities. Then the Strengths Threath Strategy through 

• Procurement of professional workers (according to the field) for product development innovations

• Improving raw material quality standards through counseling and training provided to partners

• Expansion of market share through processed product innovation

• Furthermore, the Weakness Opportunities Strategy is:

• Increasing skilled and experienced workforce so that they can compete with Farming Business Groups in Central Sulawesi Province

• Then the Weakness Threat Strategy is to improve the standard process of raw material quality so that climate differences do not affect the quality of raw materials

Suggestions

Based on the results of the research that has been carried out, the author can provide suggestions as follows:

• The Regional Government in Sigi Regency is expected to pay more attention to organic cocoa farmers in the form of providing assistance with agricultural facilities and business capital so that the Organic Farming Business Group can develop properly

• To the Cocoa Farming Groups in Palolo District and in other sub-districts in order to be able to maintain the quality of cocoa and the services that have been carried out, to expand the range of promotions and services so that the cocoa business can grow and the number of customers can increase

• Future researchers are expected to be able to expand the research area and use other analytical methods to support the development of economics related to organic cocoa business development strategies

1. Indonesian Cocoa Statistics 2020. ISSN 2714-8440, No. Publication: 05100.2113, BPS Catalog: 5504005I. Jakarta: Badan Pusat Statistik, 2020.

2. Directorate General of Plantation, Ministry of Agriculture. General Guidelines for Plantation Revitalization (Palm Oil, Rubber and Cocoa). Directorate General of Plantation, Ministry of Agriculture of the Republic of Indonesia, 2019.

3. Central Bureau of Statistics. Central Sulawesi Province in Figures. Jakarta: BPS, 2019, pp. 1–635. https://sulteng.bps.go.id/publication/2019/08/16/db05cef887cda1380a8829af/provinsi-sulawesi-tengah-dalam-angka2019.html.

4. Directorate General of Agro and Chemical Industries, Ministry of Industry. Regulation of the Minister of Industry of the Republic of Indonesia No. 113/M-IND/PER/10/2009 Concerning the Guide Map (Road Map) for Cocoa Industry Cluster Development. Jakarta: Ministry of Industry of the Republic of Indonesia, 2009.

5. Arsyad, M. et al. “Analysis of the impact of export tax policies and fertilizer price subsidies on Indonesia’s cocoa production and exports after the uruguay round.” Jurnal Sosial Ekonomi Pertanian, vol. 8, no. 1, 2011.

6. Rangkuti, Freddy. SWOT Analysis Technique to Differentiate Business Cases. Jakarta: Grafiondo Persada, 2016.