The Luwu Regency Government, in collaboration with PT Masmindo Dwi Area (MDA), officially handed over a patchouli processing facility to the Koperasi Produsen Hasil Tani Masyarakat (Community Agricultural Producers Cooperative) in Bonelemo Village.

This initiative forms part of a collaborative program between the regional government and the company to support local economic development through strengthening businesses based on regional potential.

The handover ceremony was attended by the Head of the Office of Cooperatives, Small and Medium Enterprises, and Industry, Rahimullah; the Head of the Village Community Empowerment Office of Luwu Regency, Kasmaruddin; Working Group Secretary Zulkarnaim; West Bajo Subdistrict Head Imran Salang; representatives of the village government; cooperative management; and members of the local community.

The handover marks the commencement of the cooperative’s management of the patchouli processing facility, which had been gradually developed and prepared since 2023. The facility is part of a broader patchouli business development initiative designed to be directly managed by the community through a cooperative institutional framework.

In a separate statement, MDA’s Head of Mining Engineering, Mustafa Ibrahim, emphasized that MDA’s contribution extends beyond constructing physical infrastructure to establishing a comprehensive business ecosystem. The development program includes farmer assistance at the cultivation level, strengthening the cooperative as the facility operator, and preparing production management systems to ensure sustainable operations and added value generation.

The facilities handed over include a raw material warehouse, a drying area, and a distillation unit, all designed to enhance the value of locally produced patchouli. The cooperative operates the facility with ongoing mentoring support to ensure stable and effective management.

During Phase I of the program (2023–2025), MDA focused on establishing and strengthening the Community Agricultural Producers Cooperative. The cooperative has obtained legal status and is managed by community representatives from several villages within the program area.

Cooperative administrators received foundational mentoring in organizational management, financial management, and business planning, preparing them to serve as the primary managers of the patchouli processing facility.

Upstream, patchouli farmers were provided with training on demonstration plot (demplot) development and the implementation of Good Agricultural Practices (GAP) to improve productivity and product quality. Downstream, the processed output has secured buyers and clear market access, ensuring that the business operates within an integrated value chain.

Through cooperative-based patchouli enterprise development, community members are positioned not merely as program beneficiaries but as active business actors. The initiative creates employment and business opportunities in both cultivation and processing sectors, thereby strengthening the local economy beyond reliance on formal employment within the company.

Bonelemo Village Head, Baso, noted that the approach provides clarity and sustainability for the community, as the development is implemented comprehensively.

“What we see is not merely the construction of a facility, but the preparation of a management system. Farmers are guided, the cooperative is given a clear role, and patchouli products have established processing and market channels,” he stated.

With the official handover completed, cooperative management of the patchouli enterprise will extend beyond the transfer of facilities. Phase II of the Patchouli Development Program, planned to commence in 2026, will focus on strengthening cooperative business management, enhancing farmers’ cultivation and post-harvest capacities, and developing nurseries and advanced demonstration plots.