ANALYSIS OF FINANCIAL FEASIBILITY OF ROBUSTA COFFEE FARMING IN SEMENDE DARAT LAUT DISTRICT, MUARA ENIM REGENCY, SOUTH SUMATRA PROVINCE
Endy Efrran, Zakky Fathoni, Siti Kurniasih and Zakiah
Endy Efrran: Lecture Department of Agribusiness, Agricultural Faculty, University of Jambi, Jambi, Indonesia.
Zakky Fathoni: Lecture Department of Agribusiness, Agricultural Faculty, University of Jambi, Jambi, Indonesia.
Siti Kurniasih: Lecture Department of Agribusiness, Agricultural Faculty, University of Jambi, Jambi, Indonesia.
Zakiah: Lecture Department of Agribusiness, Agricultural Faculty, University of Jambi, Jambi, Indonesia.
ABSTRACT
This study aims to 1) Describe the description of robusta coffee farming in Semende Darat Laut District, Muara Enim Regency, and 2) analyze the financial feasibility of robusta coffee farming in Semende Darat Laut District, Muara Enim Regency. The data used in this study are primary data obtained based on observations and interviews using questionnaires on sample farmers and supported by secondary data from several literatures. This research was conducted in Semende Darat Laut District by deliberately selecting 3 villages, namely Pulau Panggung Village, Karya Real Village, and Tanah Abang Village. The sample taken is the population of the 3 villages as many as 15 people in July 2022. Based on the results of the research, it is known that 1) Semende Darat Laut District is the district that produces the most coffee in Semende Darat Laut District, and the average population is robusta coffee farmers. 2) Based on the results of the calculation of financial feasibility analysis using 4 financial feasibility criteria, the Net Present Value is Rp. > 0, the Internal Rate of Return > 15%, which is equal to, the Net B/C Ratio > 1 value, and the payback period obtained is a significant amount in 4.25 years the Robusta coffee farming in Semende Darat Laut District, Muara Enim Regency can recover the costs incurred. From the calculation using the 4 financial feasibility criteria, Robusta coffee farming in Semende Darat Laut District, Muara Enim Regency is feasible to cultivate.
Keywords: Robusta coffee, farming, investment costs, income, Financial Feasibility Analysis