Analysis of factors affecting profitability of crystal coconut sugar business in Banyumas Regency, Central Java, Indonesia

Crystal coconut sugar has become one of Indonesia’s most valuable agricultural commodities, playing a crucial role in enhancing rural economies and improving smallholder livelihoods. In Banyumas Regency Central Java, the coconut sugar industry has evolved into a significant agroindustrial cluster, where household-scale producers transform locally sourced coconut sap (neera) into crystalline sugar products with strong domestic and international market potential. Small and Medium-sized Industries (SMIs) in this sector contribute not only to agribusiness revenues but also to regional economic growth by creating employment opportunities and developing complementary industries. This study aims to analyze the factors influencing the profitability of crystal coconut sugar enterprises in Banyumas Regency, Central Java. Primary data were collected from household-scale producers through structured interviews and analyzed using multiple regression methods to identify key determinants of business performance. The findings reveal that production cost components, particularly expenditures for coconut sap, mangosteen rind (used as a natural preservative), cooking oil, and firewood, significantly affect business profitability. These results highlight the importance of cost efficiency, technological adoption, and sustainable resource utilization in maintaining competitiveness and ensuring the long-term resilience of the rural coconut sugar industry. Strengthening access to innovation, market information, and renewable energy inputs can further enhance profitability and support the transformation of crystal coconut sugar into a globally competitive agribusiness product.