Patchouli Oil Industry: Sustainable Green Growth (PDF)

Company Name From Seed to Seal: Ensure Supply Chain Visibility in Patchouli Oil Industry with Data Science INTERNATIONAL STUDENT FORUM “Smart Investment f...

Company Name From Seed to Seal: Ensure Supply Chain Visibility in Patchouli Oil Industry with Data Science INTERNATIONAL STUDENT FORUM “Smart Investment for Green Growth Innovation through Data Science” Zaudhatul Ulya, S. T., M. A. Atsiri Research Center (ARC), Center for Excellence in Higher Education Science and Technology for Nilam Aceh (PUI-PT), Universitas Syiah Kuala (USK)  INTERNATIONAL STUDENT FORUM STATEXPLORE Where We Are Now Industry 5.0 : the integration of human intelligence with advanced technologies, emphasizing collaboration between humans and machines to create more sustainable, efficient, and personalized production systems.  Green Growth Economic development that ensures environmental sustainability. INTERNATIONAL STUDENT FORUM STATEXPLORE  Patchouli Oil Industry Patchouli is one of a leading commodity in Aceh, one of the poorest province in Indonesia. Indonesia supplies 90% of the world's patchouli oil, with 70% of that coming from Aceh. Aceh patchouli oil is known for its unique quality and Geographical Indication protection, making it a valuable product for sustainable growth. The main problem is the welfare of patchouli farmers and access to technology. Purification is process produces two types of oil: light fraction (PA 21-25%) for skincare products and heavy fraction (PA 60%) used as a fixative in perfumes INTERNATIONAL STUDENT FORUM STATEXPLORE  ARC-USK ARC’s inclusive innovation involves engaging all community groups in the decision-making process, ensuring everyone benefits from the innovation INTERNATIONAL STUDENT FORUM STATEXPLORE  Resulting in patchouli oil Sustainable now meets export development and standards. economic growth These improvements have increased the Patchouli Alcohol (PA) content to over 30% and reduced impurities, such Knowledge Income as heavy metals, to management with Economical Impact generating. acceptable levels below innovation 25 ppm. ARC's strategic innovations Innovative technology to have revitalized the patchouli extract high-quality ARC USK industry in Aceh, creating patchouli oil substantial economic benefits. At the farm level, the price of The expansion of patchouli patchouli leaves is cultivation from just 4 to 14 Rp15,000/kg. After districts has increased processing, the crude Facilitating the production from 150 to 350 patchouli oil is valued at Strengthened platform for patchouli Significant impact tons per year. Rp1,800,000/kg which will be international oil export and the on the community The Elixir de Gayo cooperative delivered to the international market development of connections exemplifies this success: its export market, while high- derivative products 282 farmers have conducted grade oil is priced at 21 successful shipments to Rp10,000/ml. France, each valued between When incorporated into IDR 600-800 million. perfume, where 100 ml Focusing on high contains 2.5 ml of patchouli standards and oil, the final product can international command a price of certification, such as Rp5,000,000. FFL Certification from Europe  Supply Chain Traceability to Fullfil International Demand According to Nielsen’s annual Global Corporate Sustainability Report, 66% of consumers are willing to spend more on a product if it comes from a transparent or sustainable brand. 95% At the end, Origin traceability of Composition of customers products, parts, and Processing history want more real- materials ensures the accuracy of the Quality time updates information, Safety with shipping including: Labeling With that data in hand, companies can serve customers better, identify unnecessary resource consumption, innovate rapidly, respond faster to changes in demand, and certify sustainable processes and products.  Data Science Data science plays a pivotal role in driving green growth innovation within the patchouli oil industry by optimizing processes, reducing environmental impact, and enhancing economic returns. INTERNATIONAL STUDENT FORUM STATEXPLORE  Leveraging Data Science for Innovation Data-driven farming Predictive analytics Supply chain optimization Using sensors, drones, and IoT to Capacity building for farmers: Training Collaborating with industry monitor soil conditions, crop health, and on sustainable agricultural practices. stakeholders to build an integrated weather patterns, improving yields and Analyzing market data to forecast price supply chain. quality. trends and demand fluctuations, Real-time tracking of production, Investing in technology to modernize helping farmers make informed inventory, and distribution, minimizing farming and extraction processes. decisions. waste and maximizing efficiency. ARC is having partnership with the Funding for research and development International Labour Organization (ILO) in patchouli oil product innovations. to enhance digital traceability in the supply chain INTERNATIONAL STUDENT FORUM STATEXPLORE  Green Growth Strategies in Patchouli Oil with Data Science Economic benefits of smart Zero-waste production Sustainable farming Circular economy investment and data science Innovative Implementing Good Utilizing by-products Increased profitability: Higher yields, fermentation and Agricultural Practices of patchouli oil for better product quality, and added value distillation processes (GAP) and permaculture to secondary products through product diversification (e.g., to reduce waste. restore soil and like fertilizers, essential oils, perfumes, fertilizers). ecosystems. perfumes, and Market expansion: Direct export bioenergy. opportunities from Aceh, reducing reliance on intermediaries. Job creation: New opportunities in technology-driven agriculture and green industry sectors. INTERNATIONAL STUDENT FORUM STATEXPLORE  How Data Science Influence Green Growth Innovation in Patchouli Oil Industry Data science plays a pivotal role in driving green growth innovation within the patchouli oil industry by optimizing processes, reducing environmental impact, and enhancing economic returns. Sustainability Precision agriculture for Sustainable supply chain Enhancing product innovation certification and patchouli farming management and market insights compliance Optimizing resource usage Optimization of logistics Product diversification Data for certification, FFL Real-time crop monitoring Blockchain for transparency Personalized product from Europe Predictive analytics Waste reduction development Monitoring compliance INTERNATIONAL STUDENT FORUM STATEXPLORE  Blockchain can support both traceability and transparency. Data Collection Sensors, IoT devices, and satellite imagery can collect data on Generally, for supply chains with known crop health, yield predictions, and environmental conditions. and trusted players, a centralised database approach is more than adequate. Data Analysis Advanced analytics can optimize the supply chain by predicting demand, managing resources, and identifying bottlenecks. Product Content Management Solutions Maintain a master log of data that enables consumer products companies to update product information in the event of any changes.  Integrating blockchain with data science in the patchouli oil industry BACK TO AGENDA PAGE can revolutionize the sector by ensuring transparency, improving efficiency, and fostering green growth. Data science is a key enabler of green growth innovation in the patchouli oil industry by optimizing resource usage, improving sustainability, reducing environmental impact, and enhancing profitability, it supports the industry's transition toward a more resilient, sustainable, and eco-friendly future. Industry 5.0 in the patchouli oil industry signifies a new era of innovation Executive human expertise and advanced technology unite for sustainable, efficient, and socially responsible production. Summary INTERNATIONAL STUDENT FORUM STATEXPLORE  Email [email protected] Homebase-office Industrial Engineering USK ARC USK Jl. Teuku Nyak Arief No.441, Kopelma Thank You Darussalam, Kec. Syiah Kuala, Kota Banda Aceh, Aceh 23111