Proceedings of the 2nd International Conference of Science and Technology for the Internet of Things, ICSTI 2019, September 3rd 2019, Yogyakarta, Indonesia

Research Article

Analysis of Financial Aspects Feasibility Lawang Oil Factory in Manokwari District, West Papua

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  • @INPROCEEDINGS{10.4108/eai.20-9-2019.2290711,
        author={Niclason F. F. Iwanggin and Afrizal Abdi Musyafiq and Arief  Budiman and Rochim Bakti Cahyono},
        title={Analysis of Financial Aspects Feasibility Lawang Oil Factory in Manokwari District, West Papua},
        proceedings={Proceedings of the 2nd International Conference of Science and Technology for the Internet of Things, ICSTI 2019, September 3rd 2019, Yogyakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICSTI},
        year={2020},
        month={3},
        keywords={financial feasibility analysis; lawang oil; manokwari regency; net present value; net benefit cost/ratio},
        doi={10.4108/eai.20-9-2019.2290711}
    }
    
  • Niclason F. F. Iwanggin
    Afrizal Abdi Musyafiq
    Arief Budiman
    Rochim Bakti Cahyono
    Year: 2020
    Analysis of Financial Aspects Feasibility Lawang Oil Factory in Manokwari District, West Papua
    ICSTI
    EAI
    DOI: 10.4108/eai.20-9-2019.2290711
Niclason F. F. Iwanggin1,*, Afrizal Abdi Musyafiq2, Arief Budiman3, Rochim Bakti Cahyono3
  • 1: Universitas Gadjah Mada Yogyakarta, Indoensia
  • 2: Universitas Nahdlatul Ulama, Yogyakarta, Indoensia
  • 3: Universitas Gadjah Mada, Yogyakarta, Indoensia
*Contact email: niclason.filex.f@mail.ugm.ac.id

Abstract

Small industries in the form of food and herbal industries in Manokwari regency in 2014 totaled 123 business units by absorbing 360 workers. One of the objectives of the investment is to develop and manage forest products such as essential oils derived from spices such as lawang skin oil obtained from the distillation of bark of bark. The increasing demand for essential oils at home and abroad each year can be used as an opportunity and business potential in Manokwari. The purpose of this study was to find out the data of financial studies and find out the sensitivity data of lawang oil. . The qualitative method is used in the process of lawang oil refining, a quantitative method to determine the quality of the production of lawang oil financially based on business feasibility analysis. The results of this study are the Lawang Oil Business in fianasial feasibility in Manokwari Regency in the estimation of operating period of the 2018-2022 operating year can be said to be profitable. This is based on the analysis of NPV (Net Present Value) of 10% or as much as Rp. 2,727,272,727; Net B/C (Net Benefit Cost/Ratio) is 10% or equal to 2.82; IRR (Internal Rate Return) is 12%; and the payback period is 4.5 years. Lawang oil business in its orientation certainly has favorable prospects and can be developed as long as the selling price of the product does not exceed 8.62% and the increase in operating costs does not exceed 91.3%.