Potential Development of Leading Commodities in Coastal Areas Riau, Indonesia

Almasdi Syahza,  Djaimi Bakce, Mitri Irianti,  Brilliant Asmit

Background and Objective: Most of the Riau Province in Indonesia is part of the community lives on peatlands. The development of plantations has caused income inequality between regions and farmers. The research objective was to examine the potential for accelerating rural economic development through the development of leading commodities in coastal areas. Materials and Methods: The study was conducted through a survey with developmental research. For accurate information performed with the Rapid Rural Appraisal (RRA) method. The main commodities are based on land area, production, and the number of farmers involved in agricultural activities. The potential of superior commodities in terms of farm efficiency and opportunities to create added value for farmers. Results: The development of the agricultural sector especially plantation commodities has caused income inequality between regions and farmers, especially with oil palm, rubber, sago, and coconut farmers. The palm oil commodity has guaranteed market potential. Rubber, sago, and coconut farmers face the monopsony market. The results of the study provide information on the acceleration of economic development in coastal areas through the development of plantation commodities. Conclusion: The results of the study can be taken into consideration for policymakers for community development in coastal areas. Suitable commodities developed in coastal areas are sago, coconut, rubber, and palm oil.

Citation: Syahza, A., Bakce, B., Irianti, M., Asmit, B., (2020). Potential Development of Leading Commodities in Coastal Areas Riau, Indonesia. Journal of Applied Sciences. Volume 20, Number 5. Pages 173-181. http://doi.org/10.3923/jas.2020.173.181