1 Introduction

The Indonesian economy is inextricably linked to the plantation subsector, a dominant force within the agricultural sector. Among all cultivated plantation crops, oil palm and coconut are particularly prevalent choices for the Indonesian populace. According to Basuki et al. (2023), the area of oil palm plantations in Indonesia exceeds 14.6 million hectares, with palm oil production reaching over 45.12 million tonnes. The palm oil industry's contribution to Indonesia's gross domestic product (GDP) is significant (Rustiadi et al. 2023a, b, 2022; Pribadi et al. 2023; Singer et al. 2023), accounting for 3.5% of the total, and its role in nonoil and gas exports is equally notable, contributing 13.5% of the total. Furthermore, the palm oil and coconut industries employ over 16 million individuals, underscoring their importance in the global economy, particularly as strategic commodities that meet a substantial proportion of the world's vegetable oil requirements. Research by Meijaard et al. (2018) emphasises that expanding oil palm plantations in Southeast Asia, including Indonesia and Malaysia, is influenced by diverse environmental and sociopolitical factors, underscoring the necessity for a balanced strategy that integrates economic development with ecological conservation. Conversely, the coconut industry has been shown to have considerable potential for producing coconut derivative products such as Virgin coconut oil (VCO), which has high added value and a rapidly growing global market (Debmandal and Mandal 2011). The diversification of coconut products through modern technological approaches is identified as a key factor in sustainably increasing the competitiveness of the coconut industry.

Pesisir Selatan Regency boasts extensive oil palm and coconut plantation industries, underscoring the region's strategic importance within the broader context of the West Sumatera agricultural sector. The agricultural sector in Pesisir Selatan Regency substantially contributes to rural economic growth and employment opportunities (Anggarawati and Suwarnata 2021). This assertion is further validated by West Sumatera Governor Regulation Number 525–757 of 2021 concerning the Determination of Plantation Crop, Food Crop, and Horticulture Agricultural Areas in West Sumatera Province, which designates numerous subdistricts in Pesisir Selatan Regency as palm oil and coconut production centres, predominantly owned by private entities. The Airpura, Basa Ampek Balai Tapan, Lunang, and Silaut subdistricts are identified as the primary centres for oil palm cultivation. At the same time, coconut plantations are predominantly concentrated in the Ranah Pesisir, Sutera, Lengayang, and Linggo Sari Baganti subdistricts. Oil palm in this region has been proven to contribute significantly to farmers'incomes and provide considerable employment (Nesti et al. 2018). However, the primary challenges confronting smallholders in this region pertain to fresh fruit bunches (FFB) price fluctuations and the limited technological resources available to farmers for accessing market price information, compounded by their reliance on intermediaries. The central areas of these two commodities in Pesisir Selatan Regency are represented in Fig. 1.

Fig. 1
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The centre of oil palm and coconut plantations

In addition to oil palm, the Food Crops and Horticulture Plantation Service of West Sumatera Province (Dinas Perkebunan Tanaman Pangan dan Hortikultura Provinsi Sumatera Barat) (2024) reported that coconut plantations are also an important component of the plantation sub-sector in this district, as evidenced by its position as the third largest coconut producer in West Sumatera Province. In Sungai Sirah Village, Surantih Subdistrict, Sutera District, Pesisir Selatan Regency, training has been conducted on the production of Virgin Coconut Oil (VCO) for farmer groups to increase the economic value of coconut products that have not been optimally utilised (Ikhsandy et al. 2022). The Coconut Model Village Programme (DMKe) was initiated in the South Pesisir and Padang Pariaman districts. The programme has been meticulously devised and incorporated into the coconut agribusiness subsystem to foster stakeholder collaboration and enhance economic prospects in the two districts (Afrinandos et al. 2019).

Two significant challenges confronting the coconut industry are the volatility of the price of fresh fruit bunches (FFB) and the technological constraints experienced by farmers. To address these issues, it is essential to enhance production efficiency. Furthermore, it is necessary to reduce reliance on intermediaries. Conversely, the coconut industry faces the challenge of developing adequate processing industries and adopting more efficient production technologies. Research by Sankar and Kowshika (2023) highlights the potential of coconut cultivation in Tamil Nadu, India, emphasising the importance of product diversification and adopting modern agricultural technologies to enhance global competitiveness.

According to the West Sumatera Province Food Crops and Horticulture Plantation Agency (Dinas Perkebunan Tanaman Pangan dan Hortikultura Provinsi Sumatera Barat) (2024), small-scale oil palm plantations are associated with 34,130 farming households managing 42,733.80 hectares of land, compared to 13, 796 farming households and 5,098.60 hectares of land for coconut production. However, during the 2022–2023 planting season, the harvest yield of small-scale oil palm farmers decreased by 3.13%, while coconut production increased by 11.27%.

Despite a significant number of farmers and a considerable land area, this does not ensure the optimal development of both commodities. Moreover, the expansion of Pesisir Selatan Regency into Pesisir Selatan Regency and Ranah Indo Jati Regency significantly impacts both commodities. Moreover, the cultivation and production of both commodities persistently encounter challenges. To address these challenges, it is essential to formulate and implement various strategies in the Pesisir Selatan Regency to enhance the export potential of these two commodities. The discrepancies between the two commodities are attributed to divergent management approaches and industrial development.

Based on the above description, this study aims to identify the most effective strategies for developing smallholder oil palm and coconut commodities in Pesisir Selatan Regency and establish a prioritised list of these strategies. The A'WOT method, a synthesis of the Analytic Hierarchy Process (AHP) and SWOT analysis is utilised to formulate development strategies for both commodities. This approach aims to facilitate a balanced discussion between the two parties. A'WOT is utilised to assign weights and prioritise the factors identified in the SWOT analysis. The SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats of developing both commodities. Research by Purnama et al. (2019) also utilised this method to ascertain the direction and strategies for developing plantation commodities in Aceh Barat Regency, Indonesia. Moreover, this methodological approach provides a more structured process for identifying and formulating development strategies that are more effective and aligned with the local context (Husna et al. 2025; Ginting et al. 2024).

2 Materials and methods

2.1 Data collection

The research was conducted from January to October 2024 in Pesisir Selatan Regency, West Sumatera, Indonesia. The formulation of a development strategy for palm oil and coconut commodities in Pesisir Selatan Regency was informed by the insights of subject matter experts. To this end, a series of structured interviews were conducted with five individuals: the Regional Secretary of Pesisir Selatan Regency, officials from the Data and Information Analysis Unit for Plantations (ADHP) of Pesisir Tengah Regency, the Head of the Plantation Division of West Sumatera Province, and smallholder oil palm and coconut farmers in the regency. Expert respondents were selected via the purposive sampling method to ensure the representation of parties with in-depth experience and expertise in the plantation sector. The purposive sampling method is effective in studies that require an in-depth understanding of complex and contextual issues, including stakeholders such as local governments, oil palm and coconut farmers, and academics who understand strategic issues in developing plantation commodities. To ensure the validity of the results, the data obtained through interviews were analysed via the triangulation method, which includes a comparison between primary data, secondary data from government agencies, and the latest scientific literature (Denzin 2012). The research tools used were stationery and various computers equipped with Microsoft Office.

2.2 Data analysis methods

The development strategy for palm oil and coconut commodities was formulated using A'WOT (AHP-SWOT). Hayden et al. (2021) asserted that effective decision-making is contingent on meticulous planning, and many techniques can be employed to facilitate this process. One prominent technique is the hierarchical analysis method (AHP). The Analytical Hierarchy Process (AHP) is a decision-making tool to identify the optimal choice from various alternatives (Sutanto et al. 2022; Selfia et al. 2019). The development of AHP can be traced back to the 1970 s, with its origins attributed to Thomas L. Saaty. Since its introduction, AHP has undergone significant refinement and development, making its contribution felt in various decision-making contexts. AHP provides a structured framework for users to conceptualise and justify assumptions, facilitating achieving desired results (Saaty 1980). These results are obtained from evaluating AHP components conducted by experts previously selected by comparing each component based on its priority. In decision-making, the AHP method's consistency value must be less than 0.10, ensuring the resulting decision is consistent. In addition to AHP, SWOT analysis was employed, a process of assessment that aims to identify the strengths, weaknesses, opportunities, and threats present in each situation (Suyati and Suparmi 2022). In the decision-making process, respondents were invited to assign values based on the level of importance. The numerical values ranging from 1 to 9 were utilised to indicate the results of the AHP comparison for each element. The numerical values presented in Table 1 illustrate the relative importance assigned to each element.

Table 1 Basic hierarchical analysis process (AHP) ranking scale

The development plan for smallholder oil palm and coconut commodities was formulated using the SWOT analysis. SWOT analysis is a tool that can be used to facilitate comparative analysis between an organisation's internal strengths and weaknesses and external factors that may emerge as opportunities or threats (Utami et al. 2024). The criteria for each factor were formulated through an extensive review of the extant literature and discussions with experts to ensure that the conditions prevailing in the field have been considered. The analysis concentrated on internal strengths and weaknesses related to the development activities of palm oil and coconut commodities, as well as external factors such as opportunities and threats that may arise during the development process of both commodities. These SWOT factors will be used as components of the AHP, which will then be calculated based on the importance value of each factor according to the assessment of the experts involved in this assessment to determine the strategy to be used as a priority plan in the development of smallholder oil palm and coconut plantations in Pesisir Selatan Regency. The findings related to internal and external factors associated with palm oil and coconut commodities are presented in Tables 2 and 3, respectively.

Table 2 Internal and external factors of smallholder oil palm commodities
Table 3 Internal and external factors associated with coconut commodities

3 Results and discussion

3.1 Strategies for smallholder oil palm commodity development

As illustrated in Table 4, the relevant experts determined the priority calculations for the A'WOT components'results. These calculations will determine the most suitable strategy for developing smallholder oil palm plantations. Considering the results obtained, it is evident that infrastructure enhancement should be accorded the highest priority. It is estimated that the development of small-scale oil palm plantations will be facilitated through improvements to existing infrastructure and extending these facilities to all smallholders. Another criterion prioritised in the strength component is land ownership by farmers, which benefits farmers by freeing them from the land rental system. The weakness component is characterised by a dependence on intermediaries or third parties, a common phenomenon among farmers who cannot sell their crops directly to palm oil processing companies. In their role, these third parties can influence the price paid to farmers, often at a lower price than that set by the government. (Papilo et al. 2020) Observed that these intermediaries can reduce prices to offset the costs associated with transportation, the services provided, and their profits. Moreover, those with significant financial resources can obtain palm oil more easily.

Table 4 Results of weighting the SWOT components of smallholder oil palm commodities

The opportunity component is oriented towards facilitating smallholder access to ISPO, a guideline for the plantation industry, and a means for the Indonesian palm oil industry to enter the global market. The main objective of ISPO (Indonesian Sustainable Palm Oil), the Indonesian palm oil standard set by the Indonesian government, is to ensure the sustainability and high value of palm oil products in the international market. A further key priority of the opportunity component is to provide government support, particularly regarding seed assistance, for plantation owners whose crops are ready for replanting. This assistance is expected to have a positive impact, enabling farmers to become more independent and less dependent on government assistance (Syafruddin and Risal 2024).

In the context of the threat component, the primary concern pertains to the potential environmental implications and implementation of the palm oil moratorium. The environmental impact of palm oil is frequently associated with the carbon emissions generated by the expansion of oil palm plantations (Rafli and Buchori 2022). Bright et al. (2015) asserted that alterations in the energy flow in the atmosphere can lead to an increase in temperature attributable to reduced vegetation during land conversion. Consequently, the oil palm plantation moratorium policy was formulated to mitigate this effect; however, it could compromise the economic sustainability of Indonesian oil palm. The results of the weighting of each criterion for the development of smallholder palm oil commodities in Pesisir Selatan Regency can be seen in Fig. 2. and Table 5.

Fig. 2
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Results of smallholder oil palm strategy evaluation

Table 5 Smallholder oil palm commodity development strategies

As outlined in Fig. 2 and Table 5, the strategy emphasises using technology to enhance production quality and efficiency, thereby reducing reliance on intermediaries and mitigating price volatility (WT1), with a weighting of 0.41. This strategy aims to empower farmers to enhance the quality and quantity of production at a reduced cost. It underscores the significance of employing superior seeds, implementing optimal fertilisation and irrigation techniques, and integrating agricultural mechanisation. Using transporters during harvesting is a proposed solution to reduce farmers'costs (Shuib et al. 2020). Additionally, the employment of applications to regulate crop conditions is a proposed method of incorporating technology into crop cultivation activities to ensure the production of quality crops and facilitate competition while protecting farmers from price speculation by intermediaries, which is characterised by instability. Price instability can harm farmers, allowing intermediaries to purchase at prices well below the minimum price set by the government, thereby reducing farmers'profits.

Strategy WT1 resembles strategy WO2, which aims to'develop new distribution channels that do not depend on middlemen by utilising access to fixed markets and improving agricultural management to increase long-term profits for farmers'. The government can achieve this by avoiding large-scale intervention by intermediaries against farmers. The government must actively supervise palm oil mills and intermediaries in determining prices per applicable regulations to avoid losses farmers suffer (Astuti 2019). The government has implemented a strategy of developing cooking oil factories (PAMIGO), which are managed directly by farmer groups. However, the potential benefits of this initiative could be more widely distributed if the model were to be implemented across all regions.

Strategy WT1 (Table 5) is reinforced by strategy WO1, which emphasises the provision of support and assistance for oil palm seeds, technology, and training from the government regarding plant care and efforts to meet ISPO standards, with a weighting of 0.37. These two strategies are complementary in enhancing the welfare of smallholder oil palm farmers through increased productivity, efficiency, and sustainability while fortifying their position in the global market. As Lestari et al. (2024) emphasise, efforts to improve welfare can be achieved by developing better skills for sustainable oil palm agriculture management, and the integration of tools such as drones and digital applications can potentially improve plant care activities. As Santoso (2020) emphasises, using drones can facilitate the detection of diseases that affect the base of oil palm plants. This, in turn, enables farmers to manage their plantations and improve production quality more effectively.

Other strategies that are given high priority are WT2, which emphasises educating farmers in the selection of superior seeds, maintenance, and efficient use of existing land to produce high-quality crops to reduce environmental impact and overcome the moratorium, and ST2, which encourages the implementation of sustainable agricultural practices to reduce environmental impact and optimise the productivity of existing land. These strategies have weights of 0.31 and 0.30, respectively. Integrating these two strategies is imperative to optimise productivity while reducing environmental impacts. This strategy should be implemented in the Pesisir Selatan Regency, where there is considerable potential for expanding smallholder oil palm plantations and where issues related to optimising productivity and managing environmental impacts are crucial in oil palm plantations. Integrating conservation agriculture techniques, such as planting cover crops and managing organic waste, plays a pivotal role in reducing the environmental impact of oil palm plantation expansion (Setsoafia et al. 2022). It has been emphasised that agricultural systems that optimise productivity while reducing environmental impacts tend to be sustainable and more profitable for farmers.

Strategy SO1, which is to'Utilise large and scattered plantation land by maximising infrastructure and the labour of farming households to meet ISPO standards to increase the selling value of products in the global market', has a weighting of 0.22. Infrastructure development around oil palm plantations contributes directly to production efficiency. The integration of contemporary technology, the training of local labour (farmers'families), and the facilitation of logistics infrastructure have accelerated compliance with sustainability standards such as ISPO and RSPO, thereby increasing productivity and product value. The importance of ISPO certification in Indonesia's crude palm oil (CPO) exports is underlined by its role in safeguarding the company's image and ensuring compliance with international sustainability standards. Numerous studies have demonstrated the pivotal role of ISPO certification in fostering the advancement of the downstream industry and enhancing global market competitiveness (Suroso et al. 2021). Nevertheless, further encouragement is imperative to optimise the influence of ISPO on the development of the downstream industry. Consequently, a range of initiatives must be undertaken, encompassing the reinforcement of distribution networks, facilitating farmers'access to more stable markets, and promoting sustainable agricultural practices.

The strategy of'directing farmers and utilising available infrastructure to improve crop quality and maintain the stability of palm oil FFB selling prices'(ST1) has a weighting of 0.20. This strategy aims to improve the efficiency and competitiveness of the palm oil sector in several ways, including improving crop quality by training farmers in fertilisation techniques, crop care, and the use of high-quality seedlings. The efficacy of this approach is substantiated by documented increases in yields and the quality of fresh fruit bunches (FFB), consequently enhancing the competitiveness of selling prices. Utilising adequate infrastructure, such as access roads to palm oil mills, transportation facilities, and FFB collection points, minimises logistics costs. Moreover, Pesisir Selatan Regency has previously received a grant for a cooking oil processing plant in Nagari Tanah Bakali, Airpura District. This grant facilitates the processing of palm oil, enabling farmers to obtain higher selling prices and reducing losses due to damage or delays in transportation (Putriana et al. 2023).

The strategy with the lowest score is SO2,'Combining private land ownership and farmer experience with the long-term potential of oil palm as an investment', with a weight of 0.07. Private land ownership allows farmers to access financing or credit programmes that support oil palm management to develop their plantations and increase productivity through independent land certification. Additionally, the adoption of sustainable practices, such as soil and water conservation, which are essential to meet ISPO/RSPO standards, will be more effectively facilitated by experienced farmers. The Pesisir Selatan Regency Government can implement a strategy that emphasises improving coordination between farmers, cooperatives, and investors to optimise the potential of oil palm land as a long-term investment.

3.2 Strategies for coconut commodity development

As demonstrated in Table 6, the calculation method employed for small-scale palm oil commodities can also be applied to coconut commodities. In the strength group, the priority factor is cultivation, which is relatively straightforward. The process of coconut cultivation is relatively uncomplicated, primarily due to numerous individuals'long-standing traditions and widespread cultivation, albeit not on a large scale (Ningsih 2024). Market demand for coconut products is also significant, particularly due to their benefits (Fatima et al. 2024). Coconut plants are utilised in various forms, including processed copra, oil, and products derived from processed coconut water, such as coconut water drinks, sweet vinegar, alcohol, thickening agents, and soy sauce. Furthermore, the utilisation of other components of the coconut, including the trunk, leaves, shells, and fibres, has also been documented.

Table 6 Results of weighting the SWOT components of coconut commodities

The most significant weakness is the absence of processing industries. This study demonstrated that coconut milk is the sole coconut product used for processing, particularly for aged coconuts. The community predominantly processes coconut milk, which is primarily sold within the community or in local markets. Basuki et al. (2024) asserted that the contemporary coconut processing industry relies on knowledge derived from experience and imperfect equipment, primarily driven by constraints, to meet local market demands.

The development of the downstream industry is identified as a high-priority agenda with the potential to generate significant economic benefits. The coconut industry in Indonesia offers promising opportunities for the growth of the downstream sector because of the wide range of products that can be produced from this crop, including coconut oil, milk, VCO, coconut, handicrafts, fibre, and activated charcoal (Mardesci et al. 2019). The absence of a substantial coconut processing industry in Pesisir Selatan Regency indicates significant opportunities for farmers and the region. Building this industry under the direct management of farming communities in groups is predicted to yield significant benefits.

The most significant threat identified in this study relates to land conversion, which is linked to modern plantation trends and the benefits perceived by farmers. The conversion of coconut plantations is generally driven by the perception that the economic returns are greater than coconut crops (Siahuna et al. 2024). Based on field observations, the conversion of land use from coconut plantations to oil palm plantations is driven by the higher profits obtained by farmers when planting oil palm compared to coconut. The annual profit of oil palm farmers is seven times that of coconut farmers, amounting to IDR 139,902,010.00, with an average harvest of 18 times per year and a land area of 4 hectares. Concurrently, coconut farmers’ annual earnings amount to IDR 19,361.202,000, with four harvests per year and an agricultural area of 1.6 hectares. The land area mentioned is the average land area owned by oil palm and coconut farmers. This phenomenon is of particular concern, as it could hinder the development of the coconut industry and potentially lead to a decline in production. The higher short-term financial returns from oil palm plantations encourage farmers to adopt oil palm cultivation to increase their income despite the region’s comparative advantage in coconut production. This considerable discrepancy in profit significantly impacts farmers’ decisions, leading to a shift from coconuts to oil palms, even though the long-term potential of coconuts as a primary commodity remains largely untapped. Consequently, formulating effective strategies to ensure sustainable development in this sector has become an urgent priority. These strategies must involve the development of coconut processing industries to increase added value and offer greater incentives and support for coconut farmers to maintain their plantations. Such efforts are crucial to preventing the decline of coconut production and ensuring the long-term viability of the coconut industry in the region. The findings of the evaluation of each criterion for coconut commodity development in Pesisir Selatan Regency are presented in Fig. 3 and Table 7.

Fig. 3
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Results of Coconut Strategy Evaluation

Table 7 Coconut commodity development strategies

As demonstrated in Fig. 3 and Table 7, the overarching strategy identified as WO1 places a premium on government support to revitalise ageing agricultural products and advance processing industry initiatives. The strategic objectives of this initiative include enhancing agricultural productivity and increasing farmer incomes, complemented by facilitating local economic growth and development. The approach of the Pesisir Selatan Regency Government to achieve these objectives can be summarised as follows: implementation of an old coconut tree replanting programme, provision of superior seedlings, development of a processing industry that combines product diversification and value addition, facilitation of farmer empowerment activities, and provision of financial support.

The strategies of SO2 and WO2 are consistent with strategy WO1, which emphasises providing government support to coconut farmers through industry development that follows certain principles and product processing. These two strategies are equally important, with a combined weighting of 0.38. They can be seen as reinforcing strategies by WO1, demonstrating its superior status in developing the coconut industry in the Pesisir Selatan Regency. The SO2 strategy, which aims to increase the added value of coconut commodities and encourage economic growth by facilitating the development of appropriate industries for coconut-derived products, is also important. Developing appropriate industries has been a priority for empowering smallholders and entrepreneurs to develop coconut processing activities individually and in farmer community groups (Samsudin et al. 2019). Appropriate technology requires adequate financial support and is based on innovation. The recommendation is thus to implement this initiative through collective efforts, such as forming a joint business cooperative or SME, to increase access to and utilisation of government assistance and assistance activities. Through training in the manufacture of coconut-based products and support in the development of MSMEs, it is possible to increase the competitiveness and welfare of farmers.

The WO2 strategy, entitled'Adoption of modern technology in cultivation and product processing to increase efficiency and ensure compliance with export market standards', involves integrating technology at various stages. This strategy includes using superior coconut varieties that are adaptive to local conditions in cultivation activities and applying technology to support irrigation systems, fertilisation, and other crop maintenance activities. The WT2 strategy is closely related to the strategies and involves introducing modern technology for cultivation, pest control, and protection of agricultural land. The WT2 strategy involves introducing and assisting farmers using renewable technology in cultivation activities and helping groups of coconut farmers optimise production and sustainable land management. Integrating this technology empowers farmers to use tools such as soil sensors, drones for crop monitoring, and precision irrigation systems, thus increasing the efficient use of water and fertilisers. A notable element of this strategy is the utilisation of technology-based pest control methodologies, such as the use of drones equipped with pesticide sprayers, which facilitate the management of caterpillars and rhinoceros beetles, which are known for their tendency to attack leaves and stem buds (Samseemoung et al. 2024).

Implementing technology within the WO2 strategy encompasses a range of processing activities, including using a cold-press machine to produce Virgin Coconut Oil (VCO), which adheres to export standards. The strategy encompasses the development of coconut-based agroindustries, encompassing the diversification of products such as the manufacture of Virgin coconut oil (VCO) and the utilisation of coconut waste as an alternative fuel, potentially increasing farmers'incomes. The strategy also involves the utilisation of coconut fibre, charcoal briquettes, and nata de coco, with automated equipment that improves efficiency and product quality. The simple further bolsters the strategy. Additionally, product standardisation is guided by internationally recognised certifications such as HACCP and ISO, with the overarching objective being to increase competitiveness. This technology is further incentivised by government programmes that provide subsidies or soft financing options, enabling local businesses to procure modern equipment (Xia and Dewi 2022). Additionally, collaboration with research institutes and universities facilitates access to cutting-edge technological innovations, further promoting the integration of advanced practices within the agroindustry.

Another strategy that maintains the exact weight of 0.15 is WT1, which states,'Building a processing industry to add value to products so that they can compete in the market and reduce the impact of market fluctuations.'ST2 states,'Diversifying coconut products to reduce dependence on one type of product and expand the market so that it is not too affected by price fluctuations.'The two strategies under discussion have been shown to have a synergistic relationship in creating stability and growth in the coconut industry. WT1 is responsible for providing the necessary infrastructure and technological foundation, while ST2's role is to ensure that the products produced have diversity and added value, thus minimising the impact of market fluctuations. The emphasis on developing a processing industry to add value to products by diversifying processed products is an important point. Product diversification has engendered market stability by expanding the range of available product types and reducing reliance on primary products (Kotler and Keller 2016). It is imperative to acknowledge the pivotal role of the Pesisir Selatan Regency Government in establishing regulatory frameworks and infrastructure while also serving as a crucial source of raw materials for the agricultural sector. Moreover, the industry's capacity to innovate and explore new market opportunities is of paramount importance in the execution of this strategy. The development of the coconut processing industry must be carried out to ensure optimal efficiency and prevent future economic losses. It is, therefore, evident that to ensure the sustainability and stability of the coconut industry, there must be close collaboration among all parties.

The strategy designated SO1,'Utilising available land and labour for cultivation to expand production and increase product competitiveness in the export market', has been assigned a weight of 0.14. The strategy's objective is to optimise the potential of local resources (land and labour) in the Pesisir Selatan Regency through a holistic approach encompassing cultivation, processing, and marketing. This approach is intended to enable the sustainable development of coconut products and ensure their competitiveness in export markets. The successful implementation of this strategy is contingent upon collaboration between the government, the community, and the private sector. Developing coconut products utilising local potential, including land availability and labour, can enhance productivity. Within the domain of coconut agribusiness, judicious land utilisation and the effective deployment of local labour can engender cost reductions in production and generate favourable economic ramifications for the local community (Hasrin et al. 2023).

The strategy with the lowest weight is ST1, entitled'Maximising the productive and efficient use of available land and labour to prevent land conversion', which weighs 0.11. This strategy is linked to SO1, as both strategies aim to use existing land productively and efficiently to support the expansion of domestic coconut production while preventing harmful land conversion. For instance, implementing efficient and environmentally sustainable agricultural technologies can enhance crop yields while maintaining the sustainability of agricultural land (Hasrin et al. 2023). Moreover, adopting regenerative organic practices, exemplified by the Regenerative Coconuts Agriculture Project (ReCAP) in Thailand, has reduced chemical use and maintained ecosystem balance. Implementing localised initiatives to enhance the workforce's capabilities can have several key benefits. These include increased productivity, support for production expansion, and the enhancement of competitiveness in international markets. Efficient and productive workforce management has been demonstrated to increase the value added from each hectare of land, thereby eliminating the need to convert land to other commodities. This assertion can be substantiated by implementing training programmes aimed at enhancing the competencies of farmers and coconut processing workers. Consequently, this approach mitigates the necessity for further land acquisition, thereby impeding the conversion of agricultural land into non-agricultural land.

3.3 Global relevance and implications

The strategy aligns with global agricultural development goals, particularly in improving food security, rural welfare, and environmental conservation. It advocates sustainable practices such as precision agriculture and integrated pest management to reduce environmental degradation and increase crop yields. Strategy WT1 (Palm Oil) contributes to Sustainable Development Goal (SDG) 2 (Zero Hunger) through sustainable palm oil production and SDG 13 (Climate Action) through environmentally friendly technologies. Strategy WO1 (Coconut) supports SDG 8 (Decent Work and Economic Growth) by strengthening the coconut processing industry, creating jobs, and enhancing economic value. This integrated approach enhances economic resilience and offers a scalable model for other tropical regions facing similar agricultural challenges. The development of oil palm and coconut can support several other SDGs, including poverty alleviation, improved education, renewable energy development, and reduced inequalities. The success of oil palm and coconut development depends on applying technology to improve production efficiency and quality and government support for developing downstream industries. Further development strategies for oil palm involve technology to improve production efficiency and reduce dependence on intermediaries.

In contrast, coconut development involves support for revitalising plantations and developing the coconut processing industry. This approach integrates sustainable practices with global agricultural development goals, aligning with the various SDGs mentioned. All these findings indicate that oil palm and coconut development can be a significant force in achieving the Sustainable Development Goals.

4 Conclusion

The research has identified key strategies that can be recommended to support the development of smallholder oil palm and coconut commodity sectors in the Pesisir Selatan Regency. In smallholder oil palm cultivation, strategically implementing technological solutions to enhance production quality and efficiency is paramount. This approach is instrumental in reducing reliance on intermediaries and mitigating the adverse effects of price volatility. Concurrently, government-supported initiatives are imperative for the revitalisation of coconut plantations and the promotion of value-added processing industries to drive local economic growth. Despite the evident promise of these strategies, challenges such as farmers'limited adoption of technology and environmental concerns may emerge. Consequently, future research should concentrate on targeted technological interventions and evaluate their impact on socio-economic aspects. Collaboration between government agencies, farmers, and the private sector is imperative to ensure long-term sustainability. Digital platforms for crop monitoring and enhanced farmer education programmes can fortify these strategies.

4.1 Recommendations

  • Strengthen collaboration between farmers, cooperatives, and government bodies to ensure the successful implementation of these strategies.

  • Promote sustainable agricultural practices to balance economic growth with environmental conservation.

  • Encourage further research on innovative agricultural technologies that can be adapted for smallholder farmers.