Proceedings of the 11th International Applied Business and Engineering Conference, ABEC 2023, September 21st, 2023, Bengkalis, Riau, Indonesia

Research Article

Analysis Of Investment Feasibility In Coconut Business Program And Its Derivative Products (In BUM Gading Mas Village, Teluk Pambang Village)

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  • @INPROCEEDINGS{10.4108/eai.21-9-2023.2343001,
        author={Endang Sri Wahyuni and Zulyani Zulyani},
        title={Analysis Of Investment Feasibility In Coconut Business Program And Its Derivative Products  (In BUM Gading Mas Village, Teluk Pambang Village)},
        proceedings={Proceedings of the 11th International Applied Business and Engineering Conference, ABEC 2023, September 21st, 2023, Bengkalis, Riau, Indonesia},
        publisher={EAI},
        proceedings_a={ABEC},
        year={2024},
        month={2},
        keywords={investment feasibility coconut bumd village},
        doi={10.4108/eai.21-9-2023.2343001}
    }
    
  • Endang Sri Wahyuni
    Zulyani Zulyani
    Year: 2024
    Analysis Of Investment Feasibility In Coconut Business Program And Its Derivative Products (In BUM Gading Mas Village, Teluk Pambang Village)
    ABEC
    EAI
    DOI: 10.4108/eai.21-9-2023.2343001
Endang Sri Wahyuni1,*, Zulyani Zulyani1
  • 1: Politeknik Negeri Bengkalis
*Contact email: endang.sri@polbeng.ac.id

Abstract

The purpose of this study is to conduct a feasibility analysis of the coconut business program. The methodology used is the collection of primary and secondary data to coconut-producing areas. Feasibility analysis includes aspects of market and marketing feasibility, financial aspects. One alternative to increase the added value and efficiency of the community coconut plantation business is to develop a coconut processing business, namely the establishment of an integrated small capacity coconut factory. Small capacity integrated coconut industry has the potential to be developed in coconut plantations with a processing capacity of 500,000 coconuts / month. The establishment of a coconut business with a capacity of 500 tons / month requires investment capital and working capital of IDR 236,739,000. Then the NPV calculation result based on net cash flow in the projected cash flow of the coconut business program with a discount factor (DF) of 20%, resulting in a total of IDR 3,061,215,320,-. The current bank interest rate is 5.75% per annum (SBI in 2023). The payback period (PBP) of the coconut business program of 500,000 coconuts/month is achieved over a period of 3 year. The PI (Profitability Index) value obtained from the establishment of this coconut business program is 13.92. Break Even Point (BEP) value of 30 tons per month. From the results of the investment feasibility analysis above, it is projected that this business activity is feasible to be implemented.